If you’re looking to buy a franchise: congratulations! You’re one step closer to achieving that flexible and independent lifestyle countless professionals seek. The great thing about buying into a franchise is that if you’ve never run your own business before, owning a franchise makes it that much easier. For starters, you’ve already got brand recognition, which is vital when securing new clients. With so many different franchises out there, it can be a little daunting deciding where you want to take your career next
First and foremost, it’s important to consider your interests and your current abilities. Are you more of a hands-on business person or would you prefer to have your franchise managed by staff? Do you want to work from home and have more time to spend with your family? Or are you too easily distracted? For the purpose of this blog, we’re going to compare two types of franchises in order to help you decide which is the best fit for you.
What kind of lifestyle do you want?
Trade franchises and business coaching franchises offer different lifestyles. So, to begin, you need to ask yourself what kind of style do you want. It’s important to consider the hours you are willing to work, the kind of work you enjoy and whether you prefer working directly with customers or remaining behind the scenes.
Business coaching suits those who like a hands-on approach – working directly with clients and helping change lives. Business coaching is also an excellent choice for those who want flexible hours and to create their own working schedule.
Trade franchising is ideal for those who want the option of either hands-on work, or being in a more managerial role. However, while there is flexibility in your work schedule, it can often be dictated by your customers and their calendar.
Consider the competition
Generally, you want to avoid industries that are too crowded or not populated enough. Too much crowding creates competition, while the lack of franchisees in a particular business is a warning that the market for that niche isn’t fully developed.
In the last 10 years, business coaching has grown exponentially. A report by the market research firm IBISWorld at the end of 2014 said coaching is a $1 billion industry in the U.S. alone. Today, the demand for business coaches continues to grow, making it an exciting industry to get into.
With trade franchises, depending on what you’re looking in to, you need to be cautious about over-crowding. It’s often the case when buying trade franchises that you’ll also buy into a ‘territory’ or specific area. This doesn’t offer much flexibility. However, there are, of course, trade franchises out there that are in high demand and aren’t over-crowded.
Costs and fees
If you’re looking to borrow money to buy into a franchise, lenders prefer to fund franchises in stable and proven markets. Business coaching is a fantastic franchise to buy into due to the fact it’s in high-demand. Depending on what kind of trade franchise you want to buy into, it might also be in a stable, high-demand market, making lenders more likely to loan you money.
You’ll also need to consider the fees associated. In all franchise programs, franchisors directly or indirectly collect payments from franchisees for the right to use their brand. Do your research and make sure to ask your potential franchisor a lot of questions before you commit.
Look for a recognised brand name
Regardless of the business model you’re considering, the franchise should offer a recognised brand name, proven performance and an impeccable reputation among past and present franchisees. There are plenty of credible business coaching franchises out there (like ActionCOACH!) who offer great support throughout the entire journey. There are also many trade franchises out there that offer equally valuable support.
The next steps
Are you ready to progress your career? Check out ActioCOACH’s free strategy session on what it’s like to purchase a business coaching franchise!
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