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how to get into your own business

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t’s the dream of many people to own their own successful business, but it’s not easy – after all, if running your own business were easy, everyone would be doing it. That’s why franchising is such a popular option. When you buy a franchise, you get a known brand to promote you, proven systems and processes to follow and the benefits of group buying on everything from products or ingredients to insurance. You are also trained in how to run every aspect of the business efficiently, and have ongoing support to help you achieve maximum profitability. In New Zealand, there are over 630 different franchised brands and 37,000-plus franchised outlets. It means that there’s a massive choice available to you, whether you want a brand new start-up or an existing business; something part-time or full-time; office hours or evenings; mobile, fixed or home-based; working alone, with family or with staff; city-based or regional. The only question is: How do you choose? Here’s a guide to help you answer the big questions and break the process down into bite-size chunks. In each case, we’ll cover the basics, then direct you to relevant articles on our free website that go into each area in more detail.

Learn how franchising works Although most people have heard of franchising, few really understand how it actually works. The basic principle is that someone develops a business format and an operating system which has some advantages over existing businesses in the market. By franchising, this person (called the franchisor) then replicates or clones his or her business in other geographic areas by granting the right to another (the franchisee) to operate the same business system under the same name. It’s important to note that this right is usually granted for a fixed term, not forever.

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Here are some useful articles which explain more about franchising and offer some examples. In each case, enter www.franchise.co.nz/article/ then the number shown – eg. www.franchise.co.nz/article/81 www.franchise.co.nz/article/ Franchising for beginners

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A safer path to self-employment

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What’s the point of franchise fees?

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What type of franchise would suit you? If you think that buying a franchise would help you achieve your business, financial and personal goals, then you first have to work out what type of business you want to own. You’re going to be spending most of your waking hours thinking about and working in your business, especially in the first couple of years, so it needs to be something that you enjoy. That might be something related to your previous experience, or it might involve a complete change. If it’s related to your previous experience, be aware that owning your own business is very different from working for someone else, and may mean learning more skills. You might be great at sales, but what do you know of business management, for example? A franchise is a good choice, because it will give you training, support and systems in those areas. If you’re going for a complete change, you might want to follow a passion (eg. for food, fitness or education), or you might be motivated by a change of lifestyle (eg. getting out from behind a desk to mow lawns or moving from the city to somewhere with less traffic and lower house prices). You might even be seeking a semi-passive or recurring income opportunity. Whatever the goal, look for a business where your skills will become real strengths. Do you prefer working by yourself or leading a team? Are you Franchise New Zealand

Autumn 2019

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How do you decide whether a business opportunity is right for you? Here’s a guide to working it out and where to find the resources you need to make the right decision

The franchisor gains income from an initial fee paid by the franchisee to gain access to the franchise brand, training and systems, and from ongoing fees paid by the franchisee. These ongoing fees, which may be calculated in a number of ways, also pay for ongoing training, coaching and mentoring for franchisees. There are limitations, though – for example, a franchisee may have to be open certain hours and sell only certain products or services (a McDonald’s franchisee couldn’t suddenly decide to sell pizza).

Year 28 Issue 01

21/03/19 3:30 PM

Profile for Franchise New Zealand

Franchise New Zealand - Year 28 Issue 01 – Autumn 2019  

No matter whether you were born In New Zealand or arrived in the country more recently, buying a business is a big decision. Working out wha...

Franchise New Zealand - Year 28 Issue 01 – Autumn 2019  

No matter whether you were born In New Zealand or arrived in the country more recently, buying a business is a big decision. Working out wha...

Profile for paul52