Even though you receive a lot of support when you’re starting a franchise business, there are still a great many things to consider before taking the plunge. Here are some of the things you need to be aware of before starting up your own franchise business so that you will have a better chance of achieving success.
Establish a Data Resource Center
You will find that setting up a designated Resource Center is one of the most convenient things you can do to support your franchise business. Your digital Resource Center should contain all of your brand guidelines, the latest company news, and promotions, digital communications, a directory of all your important files, and you should also be able to search for approved vendors in this Resource Center. This kind of forward-thinking database will be able to supply all the answers and solutions which you’ll need quickly when getting your franchise established.
Set Up Your Accounting Standard
By setting up an accounting standard immediately, you’ll be much better off than trying to implement one a year or two after you’ve already started. When you’re setting up your accounting standard, it should be simple to begin with, so that you can focus most of your attention on promoting the business rather than bookkeeping. But make no mistake, you will definitely need to have an accounting system set up right from the outset.
Achieve Legal Compliance
The Federal Trade Commission has established guidelines for operating a franchise, and you must be in compliance with these guidelines so as to operate within the law. You’ll probably need a lawyer to help guide you through all the nuances of franchise law, but it will be worth it so that you don’t get in trouble with the FTC.
Be Prepared for Day-to-Day Management
It’s a common misconception that a franchise is so well supported that it practically runs itself. If you are considering launching a franchise business, you should be prepared to be heavily involved as a manager and to commit a great deal of time to day-to-day operations. It’s a rare franchise that will succeed without a strong commitment from its owner-manager.
Are You Attempting to Launch a Franchise?
If you lack the necessary funding to launch your franchise, we may be able to assist you. Contact us at Aspen Commercial Lending, so our financial experts can consider some options with you that may provide the needed capital to your company. Even if you have the capital you need to start. Have you thought about what you will do if it takes longer than expected for revenue to start coming in? What if construction gets delayed? It may not be the best idea to use all your own capital to start. This is where Aspen Commercial Lending comes in, let us help you leverage your new franchise, and keep some rainy day money in the bank. You will feel better about your risk and yourself if you have a little extra cushion in the bank.
If you are just starting to think about the 100’s of franchise opportunities that exist in today’s market, take a look at this book. It breaks down some information that could be useful for you before you buy.