More often than not, it is a combination of five key fear factors that frightens people into balking at the notion of a small enterprise or franchise business, according to one of the country’s leading franchise authorities.
Andy Simpkin, who turned a one van operation on Sydney’s North Shore into the world’s biggest mobile coffee franchise, Cafe2U, has noticed that many of those who have bought into his franchise had long fought personal demons prior to joining. They were commonly held back by misinformation, unfounded concerns, personal misgivings, fear of failure or the alarmist reactions of family and friends.
According to Simpkin, he has developed a system that is able to convince his franchisees that “you are buying into a tried and tested business model that is already trading successfully with a proven track record, therefore the risks are substantially lower.”
“If you start a business on your own, you can only guess at the struggles and obstacles that lie ahead. But if you decide to buy a franchise, instead of going it alone, the problems that entrepreneurs run into have already been dealt with and worked on by the franchisor,” he said
Another important advantage of owning a franchise business is that you get need only concentrate on mastering the essential day-to-day elements of the operation. “For example, a franchisee is assisted in disciplines such as marketing. You don’t have to become a marketing guru as that support is integrated into the business model for you. A portion of the fees you pay as a franchisee goes towards marketing but comparatively the cost is minor as it is absorbed by multiple contributors. It is an economies-of-scale scenario.”
“Personal misgiving such as the generating business from nothing grips potential entrepreneurs with fear, understandably. But they are often unfounded concerns in this arena because the benefit of a franchise is the support systems. For instance we have tackled the primary fear of canvassing for new business by providing the services of a franchisee development manager to work with all our new franchisees in developing new business as soon as they start.
“And the opinions of non business friends and family is another potential dream killer. My advice is to trust your instincts; they got you this far because your current career compelled you to be here. The support is there in a franchise model, you just need to embrace it.”
While the economic climate is in the midst of a successful turnaround, no company today can honestly guarantee your future as an employee, he said.
“The only way to secure your own destiny is to take things into your hands” he said.
“When you are the owner of a franchised business your hard work and efforts become visible in your profits. Franchising can not only enrich your lifestyle, but can also be passed down to younger generations.”