Page 27 - 25148.pdf

Seven Greatest Ideas for Taking the Plunge • 15

with your marketing, assuming you are taking on a franchise that is well set. This
pretty much guarantees some customers, but just how many you will have to re-
search.

Be very careful with the market and turnover predictions from the franchiser.
There have been a lot of instances where these have been hopelessly optimistic,
showing cashflow predictions for a number of existing sites, and projecting them on
to new sites where possibly there are never going to be the sales available.

Beware also being rushed into a franchise. The franchiser people with whom
you are dealing are themselves targeted with getting new people on board as quickly
as possible. They will give you all sorts of good reasons for speed including the one
about someone else being very interested, but you must take your time and com-
plete your research. Be sceptical too about the franchiser's view on experience. People
I have spoken to all believe that it is dangerous to go straight into a retail franchise,
for example, if you have no experience at all of how retail businesses are managed.
Oh, and this is one of the times in business where doing things without a lawyer who
understands the area you are going into would be reckless. Pay the money and get
good advice.

Finally, check that it will be your dream in a few years' time. You will not be
fully independent and what feels like help and assistance at the start, may feel like
interference further down the road. Remember too that if one of your fellow fran-
chisees anywhere in the world makes a mistake and poisons a couple of customers,
you will bear the backlash. But the amount of capital you require is low and results
can be quick, so it is worth looking at it, particularly if you feel you need to cushion
the shock of hitting the water.