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Support the crucial element

Guest post by: David Banfield

Article Overview: Finding the right franchise opportunity is more about finding a franchisor with a good support record than almost anything else.

Support the crucial element

Support, Support, Support

As a franchisor I naturally talk to a lot of people that are looking at self employment and entrepreneurship as a new way of life. Many have arrived at that point in their business life through no fault of their own. Many have worked for ‘the company’ for many, many years and now for whatever reason they are no longer employed.

The world of entrepreneurship is a far cry from the world of employment. Employment in many instances comes with substantial build in support systems, a reporting hierarchy, a social network and a pre-determined timetable and goals .

Even the smartest and most proficient corporate executive will usually rely heavily on the corporate network that is built into their work environment. Whether they realize it or not the support network is a major ingredient in their success and effectiveness within their organization.

So what happens when that corporate executive is suddenly no longer a part of the big corporate machine? What happens when that individual takes a second shot to their personal ego and finds that the world of employment in this day and age is not so easy to navigate as it was for them 10, 20 or more years ago? Now faced with the double blow of no employment and maybe no prospects of employment they turn to starting their own business as a solution.

On the face of it an admirable idea and surely one that will succeed, after all they climbed way up the corporate ladder and have experience and all it takes to be successful, this time for themselves. Unfortunately statistics don’t endorse this statement. Statistics indicate that of all the business start ups that take place the majority are destined to fail. Sometimes as many as forty percent in the first year of operations. Certainly only a small minority last until their 10^th anniversary-maybe as few as 15%.

The savvy would be entrepreneur will no doubt research such statistics and quickly realize that their experience and background might not be well suited to a business start-up after all. What alternatives are left – too late in life to get back into the corporate race – lacking all round experience to start their own business and probably suffering from a risk adverse attitude as well by this time?

The solution for many people determined to make it on their own and enter the world of self employment is the area of franchising. Franchising continues to be a strong and fast growing sector of the economy. What many people fail to realize about franchising is that it touches nearly everyone’s life on a daily basis-there is virtually no service, retail establishment, garage etc. that is not in one form or another a franchise.

So the question might be-are franchises immune form failure-naturally the answer is no-there is attrition in all areas and all business models but the facts do point to a very low attrition rate with maybe only a total of 10% leaving a franchise system over a ten year period. Certainly a substantially healthier track record than is found in the independent business start-up area.

If a franchised business is the appropriate course to take is it just a case of selecting the right ‘brand’ and signing on the dotted line. If franchises have such a stellar record of success does it really matter which one is selected?

Certainly the answer is yes it does-firstly it is important for the individual to be well suited to the ‘brand’ and industry being selected. How do you determine if you should have a pet grooming franchise or a fast food restaurant? Much of the industry selection comes down to a comfort level-most people can either see themselves or not in a particular setting. Am I well suited for a retail experience maybe with long hours and many employees or would I be better positioned in a home based environment working basically on my own?

Having selected the type of franchise that you think may be suitable is it then appropriate to proceed and make the purchase. As a long time franchise executive I would say no-you still have extensive due diligence to perform. Just because franchising has a good record it does not mean that you can overlook basic investigation and validation work. Talking to existing franchisees in the prospective organization is a must. Researching the franchisor and their history is a must.

For corporate executives making the critical change from the corporate world to self employment one of the biggest concerns that they face is the support. Having come from a structured and disciplined organization it is imperative that they find a franchise company that brings that same support level to their franchisees. A franchisee may be self employed, they may be a one person organization working in a home based environment but none of these elements negates the need for solid support in all aspects of the business.

In talking to many people transiting to the franchise world they invariably ask ‘what should I look for in a franchise’. I think the answer has to be, once you have settled on an industry and business model, a high degree of personal support, find a franchisor that can demonstrate that they will be there with you to make your business grow and become successful. After all your success in a franchise environment is also reflects the franchisors success.

The success factor for a traditional bricks and mortar type franchise was often quoted as location, location, location; I think that may well have been surpassed for service franchise as well as bricks and mortar establishment into support, support, support.

David T. Banfield

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Article Tags: entrepreneurs, franchise, selfemployment, support



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