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The 5 Steps in Choosing a Franchises

Starting a business from scratch is often more
difficult than starting one that is already established. Buying a franchise
from an already known brand name means that there is no need to reinvent the
wheel, so to speak, and a proven formula to ensure your success. But where do
you start? Here are 5 imple steps for the beginner.

1. What are you good at?

As a first step, rely on your
expertise. You must be good at something or have extensive experience on it.
For example, if you have been working in the food service industry, restaurant
franchise would be a good starting point. If you love cars; tinkering or
sprucing them up endlessly, then auto repair or car assessories franchise would
be ideal considerations. If your background is accounting, you could explore an
accounting consultancy franchise or tax service franchise. If loving and
spending quality hours with children are your forte, then a daycare franchise
or childhood learning franchise would be perfect for you. Look for a franchise
that best fits your interest.

2. Examine your finances closely

What is your financial position to
purchase your chosen franchise? You should set a realistic budget to support
your franchise investment. Consider where you will obtain the financial means
to include franchise fees, taxes, payroll, employee benefits, etc. A financial
plan listing out all the required coasts and expenses would be extremely
helpful to keep you within your financial menas. If you cannot raise the amount
yourself, you could consider getting investors or applying for a bank loan from
a bank that offers the best rates, as well as, supports your goals.

3. Conduct market survey

How attractive is your franchise? Is
there a ready client to support your entry into market? How is the competition?
You need to conduct a through survey on your competition, whether they are
serving the same market that you would also be targetting. If that is so, can
you amend a little so that you can be different, and offer something unique?
You can also talk to existing franchisees to know more about your market.

4. Learn everything you can about your industry

Once you are sure that your skills
and interests are best suited for a particular industry, and you can support
your new endeavour financially, your next step should be to learn everything
about the industry. Once you’ve mastered your industry, you will be able to
achieve success in more than one way within the industry.

5. Get professional help

Buying a franchise and the
ensuing processes are complicating. Complex legal and financial documents and
agreements are often beyond the grasp of beginners, which may require the
assistance of legal and even financial advisors who specialise in these fields.
The fees that you have pay upfront on them are a small price to pay, compared
to the risks you have to take and the peace of mind you may lose if you are
doing it all by yourself.

This article was extracted from
Franchise Asia.
For more franchise opportunities,
please visit www.ifranchisemalaysia.com/

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