REAL ESTATE: FRANCHISE BUSINESSES

Buying a Franchise business can be a great way to learn.

A good franchise will teach you how to run a business, rather than a business run you. You will learn about financial management and every aspect of running a business. The key is to find an excellent franchise with a great product, excellent systems and professional support from the corporate office. The best way to know if the franchise is good is to talk to as many franchisees as possible.

BUSINESS ONE

I worked for free for six months for another franchise owner. It was important to learn every part of working in the business before I purchased my first franchise business with "Bakery" in Bankstown, NSW, Australia. Saving the money to work for free for six months was a big commitment. However, I was taught by my grandfather that you "work to learn, not to earn". Working for free and understanding every aspect of the business before I made a purchase was a key factor in running a successful business. I learned that I could add value to a poorly managed business by increasing the sales, and decreasing expenses. A franchise was an excellent way to learn a proven system. The key was to ensure that the rent was not too expensive and that the location had high traffic. I was advised to buy a franchise that was already up and running. This was a little more expensive, but it took the element of risk out of opening up a new location.

BUSINESS TWO

My second franchise was a "Coffee & Bakery" business in Belconnen, ACT, Australia. This was another great learning experience. It is important to ensure that the franchise group has good systems and good training for franchisees. It can be very helpful to talk with other franchisees as they will give you an honest view point from their own experience. Look for a business that may need improvement, but is in a great location.

BUSINESS THREE

My third Franchise business was another "Bakery" Franchise in Harbord, NSW, Australia, This business taught me a lot, the learning never stops. It is important to be teachable and willing to follow a system. If you have trouble taking direction and following guidelines, a franchise may not be a good choice. I was very lucky to have an outstanding learning experience and as a result, own an incredibly profitable business. The profit comes because of many factors, especially the excellent systems that the Franchise had created, affordable rent, great location and excellent foot traffic. All these factors are key. Talk to many other franchisees and become educated, before you decide to move ahead. Add value to a business by increasing the sales, and decreasing the expenses. Offer to work for free to learn.