by Simon Lord
last updated 16/08/2019
7 good and 7 bad reasons for buying a franchise
by Simon Lord
last updated 16/08/2019
It's important to buy a business for the right reasons, but how do you know the difference between a good reason and a bad reason?
‘Hey, why don’t I buy a business? That way, I could take time off whenever I wanted.’ That might be the dream but, for most people, it’s not the reality – not for the first few years, anyway. That’s why it’s important to buy a business for the right reasons. Here are some for you to think about.
7 good reasons to buy a franchise
1. You are determined to control your own destiny. You are happy to accept the mix of risks and rewards that come with self-employment.
2. You want to do something different. A franchise offers you the opportunity to work in a different industry, or work with your partner or children.
3. You want to use your existing skills for a new purpose. Most franchisors look for skills and abilities, not experience in a particular field.
4. You want to learn new skills. Franchises offer thorough training in their specific business, so if you have the ability to learn, a bank manager can become a baker.
5. You want to do something you love before it’s too late. If you’ve already had one or more careers, you may have some savings, or redundancy money, or equity in your house which make it possible to invest in yourself.
6. You want to create something for the future - yours or your family’s. Franchising offers a wide range of opportunities suited to two-person or family operation.
7. You want to minimise the risks. Franchising is a lower-risk way of going into business than setting up from scratch or buying an independent small business.
7 bad reasons to buy a franchise
1. You are afraid of being made redundant. Fear is a bad motivator. It might get you out of your existing job, but you will need a more positive reason if you are to enjoy having your own business.
2. You are frightened of change in your organisation. If you run your own business, you must always be looking for new ideas or better methods. Franchisors will expect you to adopt positive initiatives with enthusiasm.
3. You fear you are too old to be employable. Employers are increasingly valuing experience and stability. In addition, discrimination on the grounds of age is now illegal.
4. You want to be the boss yourself. Being the boss means taking responsibility for yourself and for others - not letting others do the work.
5. You want to take it easy. If you buy your own business, you will work harder than you ever have - at least at first.
6. Someone is offering you this great opportunity. If you really want to be self-employed, make sure you choose what you are going to do - don't let someone sell you something.
7. You’ve got to do something quickly because you need to earn some money. Most businesses do not offer an income for at least several months.
Now start looking
If you think that franchising really is for you, research the idea further – see Find the Right Franchise. Whatever you decide to do, take your time, take advice and make sure you have the full support of your family. Going into business is a big step, so tread carefully.
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