Have you been considering buying into a franchise after seeing others making a success of it? Some of the best franchise opportunities look great and have proven successful for others, but that doesn’t necessarily mean it will work for you. Looking a little deeper before deciding is the wisest choice you could make when it comes to buying a franchise. To help you with your choice of franchise, the following are three key factors you should focus on looking into:
1. Demand for Products/Services
Since humanity began trading, supply and demand have always been constant factors in successful business. If a farmer’s produce was the only source for milk in his area, he could charge a premium for his product, and the same applies to modern businesses selling a particular product or service. So you need to look into the best franchise opportunities available to you and research whether that particular business will be profitable in your particular area.
A good example of a franchise that has made a great success of catering to the demands is Cash Converters. If you own a Cash Converters franchise you have multiple revenue streams, which include the buying and selling of second-hand goods (always popular with bargain hunters) as well as financial services. In this way you end up with a business that can satisfy the demand for both products and money (which is always a huge one).
2. Restrictions on Day-to-Day Business
While this may sound a bit strange, it is an especially important factor to look into if you enjoy freedom to do good business. You may have an entrepreneurial flair, or an eye for altering business plans and marketing strategies to adapt to the changing market around you. But the fact is that some of the best franchise opportunities out there are rather rigid in their specificity of how their franchisees operate, limiting your freedom to be creative and innovative. For your own peace of mind, make sure that this won’t be a problem for you.
3. Proven Success
The proof of the pudding is in the tasting, as the old saying goes. Anybody can make empty promises, telling you that they are definitely the most profitable franchises to own in South Africa… but without the proof this means nothing. Take a long hard look at their business model both locally and internationally, search for franchisee testimonials and visit their stores to really get a feel for the brand and their success. If this proves to you that their business model is solid and reliable, chances are you can make a worthwhile investment.
Good luck in your search, and remember to keep a discerning eye on the details that matter to you (and to any good business). Your future self will thank you.