Although franchising has become a popular and convenient mode to make anybody’s transition from employment to entrepreneurship easier, the absence of clear guidelines on the industry has allowed franchising scams to proliferate.
Lin Deres, franchise relations manager of Goldilocks Bakeshop, said there a number of reasons why franchising would be a better option as startup venture for anyone who wants to become an entrepreneur.
One just has to be wise in choosing a brand to ensure that he gets a franchise that is reputable, Deres said. She shared several tips that one must consider in picking a franchise:
1. Choose Wisely
“In franchising, one has to discern the brand very well. Choose the right brand. While a good brand does not eliminate risks, it is reduced considerably,” Deres said, adding that the underlying concept of franchising is basically entering business at a reduced risk due to the established brand of the product or service being franchised.
Besides considering the brand, the image, and reputation of the franchise, one must also review the books and financial statements of the company to determine its profitability and liquidity. “One must always remember that in franchising, the brand is the anchor of the company,” Deres said.
2. Pursue Happiness
“Business should not be work for the entrepreneur, it should be his passion. Look for something that will make you happy, a business that will be your passion. As long as you are happy in that business, it will be good,” Deres said.
Although the food business is always considered a hit, choosing a franchise brand must be based on the aspiring entrepreneur\\\'s passion. It really depends on what you really like, on what you are really passionate about,” Deres said.