Franchises would be at the top of any list of investments people consider a sure bet. After all, the thinking goes, an entrepreneur is buying into an existing company and opening an outlet where none exists. Surely, the money will just pour in.
Of course, it isn’t that simple. But it can work if you follow the script. And have a bit of luck.
The great thing about a franchise is that the franchisor has already proven that their product or service is successful. They don’t guarantee success, but if you do it their way, your chances of success are far greater than if you do it on your own.
It takes a certain type of entrepreneur to succeed — one who is comfortable with running a business in a prescribed way.
Although franchises my seem to be a less exciting investment, for someone who really has a passion for managing a process, investing in franchises can be so lucrative that that extra spark may not matter.
The biggest challenge for passive investors may be managing the people who are making the investment profitable day to day. Products and services don’t deliver themselves; but rather success is driven by the passion and motivation of employees. It’s critical to make sure the people who work for you are well taken care of.
As a passive investor, having someone to pay attention to the day-to-day operation is crucial. Those who just want to invest are smart to hire proven operators; your business is only as good as the people running it.
For investors who want to turn one franchise into many, the type of franchise they start with matters. Choosing a brand that would be easier to finance given a successful track record and existing customer base are critical to the decision of multi-unit operation.
Finally, for those who want a hands-off role should consider buying existing franchises instead of building one from scratch. If you buy a franchise that is already operating, the next day you are making money rather than spending time training staff and opening with no revenue.
To learn more about franchise opportunities with High Touch High Tech, visit us online at ScienceMadeFunFranchise.net.
High Touch High Tech is the leader in innovative hands-on science and nature experiences for children, serving over 4 million children annually with 27 franchise locations across the United States, Canada, Turkey, Singapore and South Korea.