Читать книгу Small Business for Dummies - Veechi Curtis - Страница 76

I like to start with the good things in life. You know, the red wine before the cooking begins, and the wild adventures overseas before settling in to a sensible university degree. And so, before considering the downside, here are a few reasons that explain why franchising is so popular:

 You benefit from an established brand name and reputation: Assuming that the franchise has a well-established brand with a good reputation, your business is likely to have an intrinsic goodwill before you even open your doors for trading. Customers are going to recognise your business name and associate it with a consistent level of quality products or services.

 You’re working with a proven formula: Working within a franchise model is like making a chocolate cake with a tried-and-trusted recipe — as opposed to concocting a creation from whatever’s sitting in the back of the cupboard. A company that already has successful franchisees has done the hard yards, proving the demand for its products or services and figuring out a system that works.

 You’re off to a flying start: The decisions you make in the first few months of business are often the most crucial. As a franchisee, you receive expert guidance regarding trading location, shop layout, stock levels, product mix, software systems, signage and much more.

 Your risk is reduced: One key benefit of a franchise is that you don’t waste your precious capital repeating someone else’s mistakes. Hopefully, the franchisor has ironed out the bugs and found solutions to the most common problems.

 You get training to fill the gaps in your knowledge: A good franchisor is keen for you to succeed. Your initial training can help you to identify your weak points, shore up your knowledge and start your business in a much stronger position. However, if you’re really green to business, don’t expect that belonging to a franchise is going to completely compensate for a lack of experience.

 You’re part of a group: When you’re part of a franchise, you get to share ideas and knowledge within your group and, hopefully, you have the positive experience of being part of a dynamic team.

  You can increase profitability through economies of scale such as coordinated group advertising and bulk purchasing power: For example, if you have a Bakers Delight franchise, chances are the head office buys flour at the best possible price and quality, with its high-volume purchases providing leverage when negotiating with suppliers.

 You can compare your performance with others in the same franchise in key areas such as wastage, margins and average spend: This ‘benchmarking’ helps you identify areas where you can improve.