You might not need a franchisor after all!
One of the most attractive aspects of buying a franchise is the ability to avoid risk. You have a proven format, a brand, training and in most cases, some sort of launch package to get your first bunch of customers. All great! This is really good if you have chosen a franchise where you have no knowledge of the sector.
There are some good reasons for not choosing a franchise and you may find that you fall into one or more of the categories I have listed below.
- You can see that you have enough experience in the market to do it yourself.
- If you choose to go it alone, you may go though the growing pains of working what is best for you in terms of building the business. You have no franchise manual and no support, it’s just you. Is going it alone without the branding, training and support worth doing? Remember, franchised businesses carry very heavy set up costs. Will your knowledge be able to carry you through to getting the success you want on your own? If you think you are in with a chance, then going it alone could be for you!
- You have total freedom to build your business if you go it alone, not to mention the amount of cash you will save without the up front franchise fees.
- You may not have the money to do it and you don’t want to borrow. Let’s face it. If you’ve got your life savings and you need to borrow lets say another 200k and put your house up for security – sound a good idea? Even if you are buying a golden arches, you’re still going to get a few sleepless nights!
- The support from your family is there but what are the consequences of failure? Ok, so the business looks like a sure thing, but what if, perish the thought, your business falls off a cliff. If you have no family and have contemplated losing your house, fantastic! If you have three children (like me), could you really do it? Have you really contemplated the long term consequences?
Don’t invest your life savings if you don’t need to.
It’s a great feeling to be self-employed. The allure of self-determination is an overpowering one. I could not ever anticipate being employed, now that I have been self employed for years. When you pick up your first copy of a franchise magazine, you will not want to put it down. Page after page, you will find pictures of ready-made businesses with happy franchisees. Before you set your sights on a franchise, consider that there are other options. You don’t have to throw away your life savings, you just need to get down and do your homework. Look at the alternatives – there are many of them. Some legitimate businesses can be started for next to nothing. Wealthy Affiliate is one of them that I could recommend (which I am a member of) but there are others you may be interested in.
As always, if you have any questions, feel free to drop me an email. If I can be of any assistance at all, I’ll get straight back to you. If I can’t help you, I’ll do my best to point you in the right direction.
Good Luck and happy hunting!