Are you ready to move on from working for the man and become your own boss? Here are six ways to do it.

You’ve been working in your role for some time, and have always been interested in working for yourself. A franchise model can be a good way to be your own boss, without set up requirements of a start-up. A franchise can offer you proven systems, a renowned brand, and on-going support from the franchisor.  

Here are six ways you can become your own boss:

1. Know your passions and skills set

Yes, you want to be your own boss, but it’s important to understand your interests and skills set. It isn’t wise to select a franchise model simply because a franchisor has told you that there is a guaranteed income or exponential return on investment. Profit is important, but not just for profit’s sake. Make sure to also consider your motivations and ability to run that business. A franchise term can start from three to five years, and although it doesn’t seem like a long time, it isn’t a short amount of time either.

2. Get to know the franchising sector

There is no such thing as being too educated, especially in the franchising sector. Consider enrolling in a free, online pre-entry education course at Griffith University which is good overview of how franchising works. The course is funded by the Australian Competition and Consumer Commission.

3. Prepare to buy-in

Joining a franchise system usually involves funding an initial investment, which often covers training, fit out or mobile vehicles, and even licensing for some models. These buy-ins can range from $20,000 to even six or seven digit sums. Some brands will offer finance options, but it’s very important to revise your expectations when it comes to selecting a funding option.

4. Get to know a range of brands

Once you’ve narrowed down industries you are interested in, it is a good idea to get to know franchisors for a range of brands in the category. Attending franchising expos are a good way to meet franchisors and existing franchisees. These run in Sydney, Perth, Brisbane and Melbourne every year. You can find out the dates for next year’s expos in these cities.

5. Speak to experts

This is a common advice theme amongst legal and accounting professions, as well as existing franchisees. A study in March found that fewer than 20 percent of franchisees and independent small business owners really understood the term ‘due diligence’ before buying a business.

The Franchising Code of Conduct clearly states: ‘You should get independent legal, accounting and business advice before signing the franchise agreement’.

So it is extremely important to do your research before signing the dotted line; otherwise you may risk binding yourself to an agreement for five or more years with a system you didn’t consider thoroughly. And that could result in higher personal and possible financial costs than the fees you would need to pay for expert advice.  

6. Speak to existing franchisees

Who better to ask than someone who is in the system already? Together with expert advice it is imperative to speak to existing and former franchisees. Ask current franchisees if they are getting the return in investment that they expected. Ask former franchisees why they are no longer in the system. The disclosure document is required to include the contact details of current franchisees and some past franchisees.