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| Business ideas |
The difference between simply having a business idea
and a good franchise concept
A business idea is often found very quickly.
However, those people who have tried to turn a simple business idea into a
workable business concept and then this business concept into a company know
that a business idea and a successful company are worlds apart. It is no wonder,
therefore, that good franchise opportunities are not cheap.
The first steps
for people setting up a business based on their own business idea
Potential
entrepreneurs, who are interested in setting up a business using their own
business idea, generally have much more work to do initially than someone
starting up within a franchise. For a business idea must be developed in very
great detail before the business can actually be set up. If the business idea is
to become reality, then detailed analyses must be carried out on the site,
competition and market, business plans must be calculated and drawn up and
financing opportunities must be examined. Other initial questions that often
need to be answered are whether the business idea can be set up from a technical
or organizational point of view and whether the potential entrepreneur has the
necessary specialist knowledge or character to start up such a business. For
these reasons, starting up within a franchise is often a real alternative to
trying to develop a business idea from scratch.
Franchise start-ups often
mean fewer risks
There is, of course, a business idea behind every franchise
concept. However, these ideas have already been well developed by good quality
franchises, they have been tried and tested on the market and have often been
adapted several times. Put simply: using a business idea from a franchise often
means less work for potential entrepreneurs than setting up using their own
business idea as a large percentage of the background work has already been
carried out by the franchise. This also means fewer risks. Several studies have
shown this to be true including a study drawn up by the International Centre for
Franchising and Cooperation (F&C): according to their data, franchise
start-ups involve far fewer risks than starting up a business based on one’s own
business idea.
Individuals must fight to make their business idea well
known
However, even those who succeed in setting up their own company based
on their own business idea find they often have to fight harder that franchise
start-ups. For they alone are responsible for the further development of their
company. New franchisees can exchange information and experiences within the
franchise network, for example with the franchisor or other franchisees, and can
use the know-how of the franchise group. Entrepreneurs, who go it alone, often
find that it takes a long time before there business idea or product/service
becomes established on the market and a “household name”. More often than not,
new franchisees profit from the fact that the franchise brand name is very well
known on the market and by consumers.
Good franchise concepts are tried and
tested business ideas
It can be said that good franchise concepts are
business ideas that have been tried and tested on the market and have proven to
be a success. Stress, however, should be put on the word good franchise
concepts. Again and again less reputable franchisors use franchisees to test out
their business idea as this involves fewer risks for themselves. Potential
franchisees should be careful if a franchise system has not run a successful
pilot business or if the business concept is incomplete in many areas. People
should really only consider franchise concepts that have become mature
businesses.
Your own business idea already a franchise
opportunity?
Entrepreneurs who intend to start up using their own business
idea should perhaps first look at the many franchise opportunities in all
branches. Perhaps they will find that their own business idea has been a
franchise opportunity for many years and that the supposedly new idea could be
started up with fewer risks as a franchisee-run business. |
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