"Thorough research" vital before choosing franchise
By: Deborah Bates
25 August 2011
Undertaking "thorough research" is vital before you start your own business, according to franchising expert Derin Clark.
Writing for The Franchise Magazine, after searching through the UK's best franchise opportunities to find the right one, potential investors need to research their chosen business inside and out.
"It is vital that you choose the right opportunity for your circumstances and interests," he told the publication. "To do this, you need to conduct thorough research into the industry and brand before singing a legally binding franchise agreement."
Digging into not only the brand but the industry too is something many young or inexperienced entrepreneurs can neglect to do, but it is critical to understand how the brand sits within the marketplace. The sector may not be overly viable at that point in time or it may not be doing so well financially.
Also, investors need to consider the success of that industry within their local area. "Look around your local shopping areas and see if there are any similar businesses, and if not, why?" Clark suggested.
"Remember not all businesses will work in all areas, for example a shop selling mountain climbing equipment would probably do well in the Peak District but would not be successful in Norfolk. You are in the best position to known [sic] what would work and what wouldn't."
His thoughts were echoed by an expert writing for Chiff.com, stating that franchising can be a "nightmare" if the homework isn't done beforehand.
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