Before embarking on the search for a franchise, it is advisable for prospective entrepreneurs to ask themselves two questions:
- Am I ready to start my own business?
- Is a franchise business suitable for me?
Among the main reasons for starting one's own business are typically:
- I want to be an entrepreneur rather than an employee (status).
- I seek additional sources of income (income).
- I want to have control over my time and not work for someone else from 9 to 6, to dedicate more time to myself and loved ones (freedom).
- I want to determine what and how things are done (independence).
Experts note that the most preferable motives for entrepreneurs include a desire to earn money and a willingness to take responsibility for their choices and actions.
Additionally, at the start, an entrepreneur should assess the presence of qualities and circumstances that will aid in creating their own business:
- Ability to set goals and work towards them,
- Ability to focus on problem-solving,
- Willingness to make mistakes and learn from them,
- Desire for future growth,
- Good health condition and ability to work intensively,
- Support from family and close ones,
- Availability of investments and sources/opportunities for additional funding.
If the desire to start a business is thoughtful and conscious, then at the second stage, one should ask oneself whether starting a business independently or acquiring a franchise would be more effective.
The choice of each person is individual. Some enter business to realize their ideas and developments. For others, achieving success is important, and for that, an effective business model is needed. Franchising allows even those entrepreneurs without their own business idea and experience to start a business. Let's highlight the main characteristics of an entrepreneur who can succeed in a franchise business:
- Ability to work in a team. A franchise project is, of course, one's own business, but to implement it, one must be able to find benefits in cooperation and take responsibility for their actions. Lone wolves are better off not going into franchises; effective work won't be achieved.
- Ability to follow established rules and standards. If you always think you know better than others, then franchising is not the solution for you. Franchising starts with rules, lives by standards, and ends with limitations. The desire to perceive others' experience and knowledge as a source of risk reduction and the willingness to apply acquired information for the benefit of one's own actions are necessary qualities for a franchisee.
- Willingness to take responsibility for their business independently. Some entrepreneurs believe that if they have bought a franchise and pay franchise fees, then the franchisor will do everything for them. This is not the case. A franchising business is also the franchisee's own business, which they conduct independently, at their own risk. The franchisor is responsible for the accuracy of the information provided, for ensuring that the system actually operates successfully in the market. However, the franchisor does not guarantee the success of the franchisee. Primarily because success comes from hard work, energy, and competent management by the entrepreneur.
- Adequate level of legal culture. When entering into franchising relationships, the entrepreneur must understand that intellectual property is also property, and payment must be made for its use. Using someone else's name is no different from renting someone else's premises, but unlike rent, many entrepreneurs strive to avoid franchise payments in every way. After ensuring the adequacy of franchise payments before signing the contract, do not attempt to deceive the franchisor in the future. They have prepared for such a scenario, and their chances of recovering payment from a dishonest franchisee are high, even if this property cannot be physically touched.
Motives that should drive an entrepreneur to acquire a franchise include:
- I will receive an established and proven business system;
- I will receive a trademark and marketing support;
- I will be trained, and methodical assistance will be provided to me;
- I believe that I will be able to avoid most of the mistakes typical of starting a business;
- I will reduce the risk of bankruptcy;
- I will ensure a reliable image in the eyes of customers, partners, suppliers.
