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How to Determine Which Franchise Business is Best for You?

  • Manish Khanna
  • Franchise
  • August 03, 2018
How to Determine Which Franchise Business is Best for You?

Franchising sector has emerged as one of the most dynamic and substantial industries in Australia. According to a report, the revenue for the Franchising industry is expected to grow at an annualised 1.7% in the next five years.  Undoubtedly, franchising has become a streamlined way of doing business, particularly in Australia. A franchise sector has revolutionised the way people do the business and provided small business owners with a platform to compete with the large companies without spending an entire capital on the venture. 

Even, the budding entrepreneurs and potential individuals are heading towards reputed and suitable franchise systems to kick-start their entrepreneurial career and reach their targeted bottom line. If you are also looking for a sustainable and profitable way of doing business, then it is good to invest in a franchise for sale in Australia.  

However, with more than 1,100 business franchise systems available in Australia out of which 92% are home-grown, thus it would become difficult for you to choose the most suitable franchise option. From retail stores to café and coffee shops, restaurants to medical stores, you may get overwhelmed when it comes to making the right buying decision. Most of the industries are doing pretty good but the decision of choosing the most suitable one depends only on your specific need.

For example, the retailing sector is contributing 24 per cent of franchise units, but the commercial cleaning industry revenue is expected to increase to $11.0 billion (at an annualised 2.9%) over the next five years through 2017-2018.  So, both the industries are doing excellent and that’s where you have to make the decision of buying the right franchise on your own. However, with the help of well-researched strategies and determined approach you can you can invest in the right franchise for sale in Melbourne, Sydney, Gold Coast and other cities of the nation.

Below are the few questions that you should consider before jumping into a franchise buying process.

1.   Why do you need a franchise business?

Self-assessment is one of the key aspects that can help you know what you exactly want. Many people don’t have enough funds to start up their own business, and thus they buy an established franchise model. It is an affordable and profitable way of running a business that involves the least amount of risk.

However, this reason is not enough to determine your specific requirement. You either may be looking for a franchise to generate a primary source of income, or you want to do as a hobby. Many people also invest in a reputed franchise to build equity.  So, make sure you define your business goals before getting into any procedure.

2.   Do you have any prior experience or specific business skills?

Nobody can know your potential better than you. So, if you have any particular business skill or you desire for a specific business to run, then you should choose a franchise business that can help you get the most out of your potential. When you streamline your skills in the right business, you will get better opportunities to accomplish both your organisational and personal goals.  

3.   How many funds do you have to invest?

It is imperative to know how much money you have to invest in a franchise model. You might know what type of business you want to own, but you are unable to decide due to the lack of financial resources. This happens when you don’t create realistic goals for your business. Being a potential franchise owner, you should dig into the process of research and evaluate your current financial condition to get the outcome.

Since the Australian market boasts thousands of flourishing franchise opportunities, make sure you invest in a one that can suit your estimated budget and help you generate higher ROI. Create your own strategy, evaluate your funds and invest in a business that can benefit you in a long-run.

For example, Cleaning is one of those franchise models that require little or no prior experience and can be started with low overheads. You can find your choice of cleaning franchise and begin your entrepreneurial journey.  

4.   How much can you involve in a business?

Whether you want a business that directly deals with the delivery of products and services or you want to run a service-based company. Before you sign a franchise agreement, make sure you ask this question to yourself. Running a successful business requires dedication, enthusiasm, and complete-involvement. These are the three pillars that can help you become a cutting-edge businessman in this cutthroat market.

If you are willing to devote your full time in your franchise business, then it is good to invest in a retail or café franchise. But if you want to work during weekends or specific days of the week, it would be ideal to look for the home-based franchise. This is how you can determine your specific requirement and make the franchise buying decision accordingly.

5.   How much risk are you willing to bear?

After concluding your financial resources, dig deeper into the process and find out how much risk you can bear to run a franchise business. The risk-bearing factor plays a crucial role in helping you decide what type or nature of business suits you the best. There are some giant companies with proven records of franchising success. They took risks and now yielding higher revenues and profits. Though it is impossible to guarantee success, you can create your own roadmaps to reach your defined goals.

 Buying the Right Franchise Business: Top 3 Franchising Industries Available in Australia

1.   Cafés and Coffee Industry

Over the last five years, the industry has established themselves as one of the most demanding businesses in Australia. The lively coffee culture and positive consumer behaviour are the two key reasons why small businesses are driving towards this flourishing industry.  According to the IBIS World, the industry revenue is expected to boost by 2.7 % in 2018 and generate total revenue of worth $8.3 billion. (https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/cafes-coffee-shops.html)

Despite the industry’s positive performance, most of the small businesses are finding obstacles in sustaining revenues due to competitive pressures and low industry concentrations. If you want to sustain longer, you need to join hands with the brand or a company that can help you yield sustainable profits and growth.

Well, you can invest in a reputed café and coffee franchise business that is based on proven methodologies, robust market research, and existing customer base. You can buy a company that can help you generate higher returns with low start-up costs and café and coffee industry is among them. 

To be a part of this rapidly growing and most preferred Industry, visit https://www.franchise2sell.com.au/franchise-for-sale/cafe-and-coffee-shop

2.   Cleaning Industry

The cleaning business is one of those industries that has been growing steadily in the Australian franchising sector. There are more than 28, 230 cleaning businesses in the industry that specialise in residential and commercial cleaning, bond or end of lease cleaning, carpet and upholstery cleaning, and a lot more.  In fact, the industry’s revenue was recorded at $ 4 billion/per annum in 2015 while the commercial cleaning industry is expected to reach $11 billion with an annual growth of 2.9 % through 2017-2018.

While the demand for professional cleaning has been increasing, the easy-to-run approach and low-startup costs are also one of the key reasons why small businesses are buying cleaning franchise in Australia.  The market is diverse, and so is the demand. It can give you higher returns if you buy a business from a reputed franchisor that has proven strategies and long-list of existing customers. So, choose a company that can give you comprehensive training, on-going support and flexibility to grow the scale of the business in different territories. 

For an insight into the available opportunities in Cleaning Industry, visit https://www.franchise2sell.com.au/franchise-for-sale/cleaning

3.   Take-away food and Restaurants Industry

The success story of franchising in Australia commenced with the world’s leading fast food systems, including Pizza Hut, McDonalds and KFC back in 1970’s. Since then, franchising sector in food and restaurant industry is doing pretty good.  According to the stats, industry revenue is expected to rise by 3.5 % over the five years through 2017-2018. With the increasing demand for quality food and leisure dining experience, the revenue is predicted to increase to $20.1 billion in the next five years – this is outstanding.

If you are planning to kick-start your career as a successful franchise owner, you can invest your money in food and restaurant industry. All you need to do is to research the best options within your local reach and get the most out of your investment. Make sure you choose a model that already has an established business system, existing customer base and proven track record. 

To explore your opportunities in Takeaway food and Restaurant Industry, visit https://www.franchise2sell.com.au/franchise-for-sale/takeaway-food

Conclusion

Finding a right franchise business can be challenging and time-consuming. You may have to push yourself hard to get the most out of your investment strategy. Look around the market trends, analyse your financial status and determine your personal and business goals before investing in a franchise business for sale in Sydney, Melbourne, Gold Coast, Sunshine Coast, Perth and other cities of Australia. This is just the beginning of your entrepreneurial journey. Hope you make the right decision!