Business
So you want to buy a Franchise?
Five things you need to consider first
I
t might be an exciting prospect to buy a business and stay in Australia. Investing into a franchise may seem the way to go, however, like any business
decision, this one must not be made lightly. You will find three further resources attached to read further up about buying a franchise, which I recommend you read. You can make an informed decision, and be prepared if you choose to proceed.
Personally, I have owned and managed three cafes in the past 15 years, two of them independently whilst the current cafe is a franchise. I can therefore make some comments which might be helpful.
3.Due Diligence and Business Plans.
By Michael Cubbage,
Franchise Owner of Caffissimo West End
1. Is this your passion?
If you would like to come to Australia, buying a franchise may seem like the
easier option as everything is seemingly in place. Before you buy a franchise
or any other business, however, you have to ask yourself the question: “Is
this what I love doing?” Once you buy into a franchise, your life is no longer
your own as the business demands your attention 24/7. Instead of living
your dream of being a small business owner, you may find yourself living a
nightmare if you lack the major ingredient to success; passion. Make sure you
buy into what you feel passionate about, which brings me to the next point.
2. How much do you know?
Know and understand the product that you sell. This may sound like common sense, however, it surprised me to discover how many franchise owners
do not drink coffee and have little interest or knowledge about the coffee
industry. Why on earth would you buy a cafe? A lot of people who buy a
franchise are fulfilling a long held dream to work for themselves, without really knowing the type of business they would like to enter into. Unfortunately, franchises tend to draw people who have little or no business experience.
They have often come straight from a job, or they are buying themselves or
family members a job.
Product knowledge is essential in marketing your product, and in a franchise you have to think about marketing and customer sales. Whilst buying
a franchise might help with the branding and structure setup, it has no obligation to do the marketing for you. Often, people who buy into a franchise
expect too much from the franchisor and do not realise how much running
of the busi