Old Town, Papa Rich, McDonalds. There are are some of the familiar names that have grown because of franchising. They have created a system which can be replicated for wanna be business owners. Potential business owners may tap on the system, usage plus the visibility of the brand and also the know how of the company itself to create a lower risk business. Despite being one of the growth engine of the roaring 80s, it is very much still relevant in the 21st century. However before you rush out to be a franchisee of the next big thing. Here are 3 things you need to consider if buying a franchise may be a wrong move for you.
Do you have enough cash?
Although in countries like Malaysia there may be various loans and grants for you to buy a franchise, you should calculate if you have enough money to cover, the franchise fee, raw material,set up cost and salary for the start and a few months. Check out McDonalds’ Malaysia financial requirements as a general guideline.
Do you have the time for it?
Running a franchise is not as simple as just invest and let it run. You have to be involved in day to day operation and also be actively involved in training when you enroll in a franchise program. Most franchisor would want to make sure their franchisee are the one involve and running day to day.
Do you have the personality for it?
Are you a creative type who likes to take risk and experiment? Are you very enterprising? Do you always aspire to a entrepreneur and expect high risk equals to higher rewards? If you answer YES to any questions above, you should not be be a franchisee. The personality type of a franchise owner should be of a lower risk taking kind. Of course, each franchise have their own ideal personality type and you would have to go through an interview to apply.
Find out more about Malaysian franchises at Malaysian Franchise Association.
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