Finding the Best Retail Franchise Opportunities
There are numerous retail franchise opportunities available for anyone who is looking to start their own business but is unwilling, or incapable, of starting up their own distinct operation. Through a cursory internet search for retail franchises you will be directed to thousands of retail franchise opportunities from small to large, inexpensive to million dollar franchises, small and large names, and profitable and non-profitable.
When you are deciding on a retail franchise there are a number of considerations that you need to make before picking the retail franchise opportunity that is right for you. You will need to consider price, reputation, financing, and location, among others.
First step is deciding what type of franchise you want. When considering retail franchise opportunities you need to analyze a number of factors. What is the success of the franchise? Like the stock market, there are blue chips and risky ventures. Getting a Macy’s franchise is more likely to be a stable money maker than a franchise that has not proven itself.
Before you settle on a franchise you will want to consider personal goals. What do I have experience with? If you are a professional carpenter then a Home Depot franchise may better suited for you than a Barnes & Noble. Other questions to ask are what can I afford for a franchise? what kind of royalties will I be expected to pay? among other things.
You will also want to consider the commitment of the franchisee. How involved is the franchisee in the operation of the franchise? Depending on who you are and where you want the franchise to go, you may or may not a franchisor who is highly involved.
The name of the franchise is also important. One of the main reasons why people enter into a franchise business is because the name of the franchise itself demands respect and customers will go to your location simply because of the name. This way you don’t have to worry about acquiring clientele. A good franchise should also have a very serious and widespread marketing system. When your franchise has commercials on television and radio constantly it prevents you from having to go out and do advertising on your own.
One of the objectives of a franchise opportunity is to have that franchise operate like any other in the chain of stores. When customers come to your location they should know right away that it is associated with that franchise. This not only means in the name but in the service and products they provide, layout of the business, and even the uniforms. When you are considering a franchise opportunity you will want to find out if training is involved and how extensive. You want your franchise to operate like every other in that chain of businesses. The franchise has spent a long time building a reputation, its why you bought that specific franchise to begin with, take advantage of it.
Maybe the most important aspect of a franchise is the standard “location, location, location.” Retail franchise opportunities depend on foot traffic, access to major highways and roads. When looking to buy a franchise you will pay more for better locations but you will also be taking advantage of a bustling business area. Retail franchise opportunities that exist in business districts, downtown areas, or malls have the benefit of taking advantage of consumers who shop at other store sin the area. When consumers are shopping at one store close to your retail franchise they are more likely to enter your store than if your store was secluded. When looking for retail franchise opportunities you may want to consider a franchise that already exists in a mall or strip mall.
One of the most difficult parts of taking advantage of are retail franchise opportunity is getting financing. When you get financing for your retail franchise opportunity from a lender you will normally be lumped into one of two categories: “sure things” and “high risk.” The “sure thing” category, and the ones that often receive financing, are individuals who have successful business experience in similar businesses, have stellar credit, and have successfully run franchises in the past. These individuals are looked at as guarantees in the eyes of the lender and will often be approved.
The “high risk” category encompasses those individuals who have little to no business experience, are looking to start a franchise in a new location with a little known name, and have average to poor credit. When this happens a lender will be hard pressed to give you a loan for your franchise opportunity. In those situations it may be better to fund your franchise opportunity through a home equity loan, personal loan, or an extended line of credit. Many times the franchisor will actually finance your franchise opportunity.
When meeting with a lender for a retail franchise opportunity it is important to have all documentation readily available. This includes tax returns, personal financing, credit reports, any documentation of property that may be used as collateral, among other things