We - humans - have an amazing urge to direct our business destiny.
The concept has been known since man decided to settle.
Subsistence farming, urbanisation, industrialisation and finally commercialisation led to the obvious outcome - the growth of private businesses.
Unfortunately, majority of people want to own a business and thus the competition in this area is very high.
After Second World War the factories around developed countries had a shortage of labour. Those days, working for big corporations was an obvious choice. Today, the high level of a global unemployment, lack of permanent jobs and the reduced financial security brings back the need for the private ownership. Thus, owning the business opens possibilities to control your own financial destiny.
However, what kind of business will allow me to succeed? The obvious choice is to buy or to franchise a proven business. In Australia the concept to franchise a business has been known for 30 years. Initially, the franchise opportunities were limited.
Today, you can franchise a business from almost any commercial category. The most popular franchise ideas are retail outlets. Unfortunately, most profitable franchises are also the most expensive ones. Yet, these successful franchises are not completely foolproof.
Well, it is simple - you approach the franchisor then you sign and let go-off your precious finances. And then what? Hmmm... that is a real question. For starters, you need to be prepared. How to franchise a business is not just about the money. It is about a feasibility study before committing.
The question on how to franchise a business is based primarily on your financial capability.
Unfortunately, there is no magic way to go around it.
You must (not just should) evaluate the franchise based on how much money you can spare and how much is needed to live.
The assumption that the business will always prosper is an absolute illusion.
Those businesses, which have a low chance of collapse (McDonalds, Hungry Jack) do come with astronomical prices.
Thus, you need a massive budget if you want more security. You must assume that the monthly budget set for the franchise can be regarded as losses. If you start to draw from the "living money" then you are bound for a real trouble. A lot of franchises start to profit after year or two of the operation. This is the time, the money you initially invested plus the cost of the daily operations start to bring dividends.
Once you decide on your own financial ability, you need to go through the feasibility study.
There are numerous websites which deal with franchise opportunities.
These are good guides as for the long term duration.
In other words, they provide a macro-scale evaluation on how to franchise a business.
However, for the micro-level you need to do a feasibility study. Choose 3 franchises in which you are interested in. Prepare a set of questions to interview the franchisor. Back up the answers by interviewing current and past franchisees.
Remember, never ask franchisees about personal matters (e.g. how much do they earn). The volume of sales, losses and franchisor operations are all appropriate topics. If you are still happy then go and get a legal advice about the contract. It will cost some money but it is worth it!. Have a conversation with friends about their ideas, comments and concerns (we assume that by this point you did inform your wife about the plan!). If you are still happy then now you can become the franchisee.