There are a lot of things you need to know before you jump into a franchise venture. The industry is already broad, and as each month passes the industry only continues to grow.
The South African franchise industry contributes almost 10% to the South African GDP. This revelation shows the extent this industry is growing and the demand people have for this industry. As it is growing, it is becoming very competitive.
However, competition is the least of your worries, as competition is good for any business. As someone starting out in this industry, here are a few tips to get you started:
1. The most important thing you need to do when you get into the franchise industry is to ‘know how it operates’. Being knowledgeable about the industry is an important aspect. It gives you an idea of how valuable the business is and this can easily help you succeed in the industry.
Know the basics of the industry such as, the number of employees you will need.
2. Remember that there is a price tag on everything and buying a franchise can be quite expensive. That is why it is important for you to know your budget. Ensure you calculate everything that you will need. This includes all the equipment and remuneration of all employees.
3. This is your chance to learn about the franchisor. This is the Franchise Association of South Africa (FASA), they are the trade association, which allows franchisees to operate a franchise business in South Africa.
It is vital that you understand their role; and being a member at this organization can help you network your business.
4. This is your chance to learn from other people who have been in the industry, this includes people who are already in the industry as well as those who have quit the business. FASA can provide you with these details.
You can also be a part of supportive franchise groups for when you need advice on the happenings of the industry.
5. After gathering all the details from FASA, take the time to know how you will benefit from this business. After all, why do people get into a business? The main goal is profit.
With a few guidelines and understanding of the industry, you can be able to reap the rewards of this industry. Since it is a broad environment, there is already a market for whatever you are going to sell.
6. Understanding this industry is beyond knowing just the business, you need to know your future customers. Know what they prefer and where they reside, in a small town or in the city
7. Get legal advice and knowledge. FASA will give you an agreement document to sign. This document is very important because it has details about FASA and the franchise industry.
You can get a qualified lawyer to help you with this document, preferably a lawyer who also understands the franchise industry.
8. Lastly, if you are planning to get a partner, be very cautious. Know the background of the person you are getting into business with, understand what their intentions are and whether or not these match your own.
Are you looking for a franchise for sale? Visit the Junk Mail website for franchise opportunities.
