Let’s face it, Setting up a small business is no easy thing and success is never a given, rather it all depends on many different factors. The hardest thing about a sustainable business is creating a brand that people trust, which is one reason why so many Australian entrepreneurs prefer to take out a franchise with an established company that has a tried and trusted brand.
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Successful Business Model
Simply put, a franchiser has already demonstrated that they have a winning combination; a franchised business should have a track record of at least 5 years, with many successful branches. They have packaged their enterprise and they provide all the support the franchisee needs, with hands-on support for as long as it is needed. You might have to use specific toilet paper suppliers in AU and the parent company give you a long list of suppliers and vendors that they want you to use.
Tried & trusted brand
This is the real value of a franchise is the fact that the brand has already enjoyed a degree of success; it is impossible to franchise a new business, as it has no track record, so there is nothing to sell. Typically, a successful business would open at least 5 branches before franchising and would have been trading for 5 years and with a great reputation.
It should be noted that the franchiser exerts a lot of control over your business processes; staff must wear specific uniforms, all ingredients and equipment are supplied, and the parent company teaches you the routines and processes, ensuring that you are replicating their proven system. You are assigned a manager whose job it is to help you in any way they can. One reason why franchising works is that both franchiser and franchisee are committed to success; having their expertise at hand is invaluable and is the main reason why most enjoy a degree of success.
What does a franchisee need? You obviously need the capital to make it happen, while you should also have a passion for the business, whatever it might be. The parent company would advertise franchises by location and applicants are carefully screened; no one benefits from a failure and there are times when an applicant is rejected.
If you pass the screening, you then have to attend workshops and begin to learn how the business works; you will need lots of enthusiasm, be able to problem-solve and overcome obstacles, with attention to detail and a strong desire to succeed.
Alex is fascinated with “understanding” people. It’s actually what drives everything he does. He believes in a thoughtful exploration of how you shape your thoughts, experience of the world.