Tuesday 14 September 2010

Franchise Versus Business

The decision

So you have made the first decision to give up your job and work for yourself! (STOP!) The first thing you have to remember is that you need to carry on eating and paying the bills. Whichever route you decide to go the ground work takes time and even in the first few months, you will receive very little income from your new Franchise or Business so carry on your day job until you are confident that you are going to provide yourself with an income.

Next Step what do I do!
First thing in either route is to decide on your new profession. You don’t have to do the same job that bored you silly. Do something that interests you and doesn’t put you into situations that make you unhappy. Why be a Gardener if you hate the outdoors, why start a business that has loads of contact with people if you hate talking to them, be true to your self and choose something that will make you happy and keep you interested!

Pros and Cons of your own Business

Business Franchise
Do you have a good understanding of your chosen profession If you haven’t you will need to do a lot of research and training If you haven’t it shouldn’t be a problem as training will probably be provided
Do you have a unique selling point or product and do you know the price you can charge for it You will need to research you competitors and work out your unique selling point or product and its position in the market place and price The Franchisor will have done the research they will know the market place, what their unique selling points are and what you can charge for the product
Business Plan You will have to write your business plan in a manor that is acceptable to the bank or funding body that you are going to approach. Stating your needs objectives and possible out comes including potential pitfalls The Franchisor will have done the research, they will have spoken to banks and others sources of funding and will probably have a business plan that you can use and adapt.
Company Formation What sort of company do you want to form Ltd or Sole trader VAT registered or not you have to decide. Franchisor will be able to advise
Funding You will need to work out details of your costs and potential profits including equipment costs and wages. You will then need to provide a detailed budget, balance sheet and projected profit and loss to your chosen funding institution.
Your Franchisor will know the cost and potential profit of the product at a given price which will probably be set an RRP. They should have funding options in place with facilities for potential Franchises
Business Management You have to learn how to run a business Your Franchisor will provide a business mentor to teach you the basics of running your business
Business Strategy You have to learn how to run a business including strategy routes to market, potential markets, competitors and business planning Your business mentor can teach you the basics of running your business including routes to market and unique selling points.
Opnes provides a Business mentor as part of the package who will take you through an 8 week course in managing your business.
Branding Corporate ID and marketing material You will have to work out your Corporate id, potential market and source Marketing Material, a Loo website and any other promotional material

As a guide some Designers can charge £750 just for a logo.
Corporate id and potential market are set by the Franchisor you will be able to use their logo and they will supply you with website marketing material and any other promotional material they feel necessary
Products You can sell what ever products you like its your business but you have to source them and support them You can only sell the products supplied by your franchisor but they will source and support those products
Holidays You have to keep your customers happy if you are on holiday you need to have backup to look after your customers or employ someone else Franchisor will be able to offer support or franchises often help each other out and cover for holidays

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