Business Franchise Australia and New Zealand 17every business starts with a
dream; however every dream
doesn’t necessarily become
a business. At the outset the
dreamer needs to establish
if they are the right person to
turn that dream into a reality.
do you have the skills and
qualities required to run your
own franchise business?Purchasing a franchise and running your
own business may be one of the most
exciting things you ever do. It can offer lots
of potential rewards however you need to
understand the risks involved in running
your own enterprise, both financially and
personally. Ask yourself if you have what it
takes to be your own boss; why do you want
to be in business; is this really for me?
Above all you will need passion and a love for
the franchise business you choose to get into.
Then, there are certain attributes that someone
starting their own business ideally has:- RISK APPETITE - you should be
comfortable with a certain level of business
risk; - NUMER ACY - while you don’t need to
be a mathematical genius, you do need to
understand numbers and be confident in
dealing with cash flow; - ASPIR ATIONS - without a boss to guide
you, you will need to be self-motivated and
have the ability to inspire and lead others; - RESILIENCE - because ‘the buck stops
with you’ you need to have the stamina and
persistence to work the hours needed; and - INNOVATION – it will be up to you
to anticipate potential problems or
opportunities, to think logically about those
situations and look for successful outcomes.
Small business owners and franchisees need
to understand or be willing to learn about
day-to-day business management, planning,
and sales and marketing. There are short (and
longer) courses you can take to acquire any
“you will need passion and a love for the
franchise business you choose to get into.”
ian watt | Senior Business development manager - Franchising,
NSw & Act | BusiNess BANki Ng, WestpAc
skills you may be lacking. Don’t forget that
one of the best skills is to ask questions and
seek advice. One of the benefits of buying into
a franchise system is that the franchisor often
provides regular training opportunities for its
franchisees. However, don’t just rely on the
franchisor. Find an accountant, lawyer and
bank manager that you trust and respect, and
make sure you research material on how to
manage your business – you may be surprised
how much you already know and how many
skills you already have, though you should
always be willing to learn more.
Whether you are getting into your own
business because you have identified a gap in
the market, or you simply want to be your
own boss, it is good practice to flesh out your
ideas on paper. Many small business owners
fail to write business, marketing and financial
plans which can lead to the business under
performing. Your first job then, is to gather
sufficient information to help you write these
plans.
Ask yourself these questions:- do you fully understand the franchise
business you want to get into? - does the franchisor have similar goals and
values to you, because you will need to work
effectively together? - do you know who your customers are, and
who your competitors are? - do you know why your customers would
choose to buy from you rather than your
competitors? - what are the opportunities for the business,
and what strengths will help you make the
most of those opportunities? - what weaknesses may potentially threaten
the business? - do you have sufficient funds to pay for
opening costs and cash flow needs for, say,
12 months? - do you have access to more funds if you
need them? and, - how much money and time are you
prepared to risk on this business?
This list is not exhaustive but may help you
get started.
Take time to develop your business plan,
outlining your goals, your strategies, your
prospects and how you will achieve them.
Each business will have its own unique plan
so while it is good to work from a template,
discard any headings that don’t specifically
apply to your business. Don’t treat it as
‘homework’ but as a serious analysis of how
your business will work. Planning will help
you to test your ideas and decide on strategies
to reach your goals.