Tuesday 7th of July 2020
Entrepreneurship is the professional goal of several workers with big dreams. They wish to run a
...business independently instead of following orders...
Entrepreneurship is the professional goal of several workers with big dreams. They wish to run a business independently instead of following orders. It gives them a sense of freedom and autonomy that cannot be enjoyed in the workforce. However, the lack of business acumen and entrepreneurial experience can create an obstacle in their path to success. Thus, many choose to take the easier route of buying a franchise.
It brings the best of both worlds to the table with an independently owned franchise that gets support from the franchisor. The franchisee can run the business without interference with the help needed to stay afloat. However, with tons of Sydney businesses for sale in the franchise industry, it becomes challenging to choose one. So, here is how an aspiring entrepreneur can identify a suitable franchise opportunity. These steps can help identify the right business that matches the buyer's profile, skill set and budget.
When you decide to purchase a business for sale Sydney, you need to determine where your interests lie. Franchises are available across sectors and industries. You can find an established brand easily if you know where to look. If you are unsure, start by listing down your hobbies, interests, professional qualifications, skills, and experience.
Identify the industry that will suit your professional goals and expertise to enter the right domain. You can also look at your strengths and weaknesses to determine a suitable business that can be managed and controlled without hassles. It will ensure that you can put your best foot forward and never feel stuck in the wrong place after the purchase.
Once you have chosen the industry for buying the franchise, you need to check the amount of funding you can get from moneylenders. Taking out a business loan is the best way to start a business. You must consult a business broker or an accountant to identify low-interest loans that can be repaid quickly.
The loan approval will depend on the franchise's financial projections and the buyer's creditworthiness. It is easier to get a loan when you opt for an established brand or buy a franchise for resale because it comes with a proven business model. You need to have an additional cash reserve to be prepared for any unexpected situation. The amount of funds you can gather will help you choose a franchise that can fit into your budget.
Find a franchise opportunity that requires an investment that can be funded easily. It must be a well-recognised brand and have a strong online presence. Look at the long-term potential of the business and the consistent rate of demand for its products.
These can be found on business buying and selling websites. Franchisors list them online to attract enquiries from prospective buyers. These advertisements have brief information about the franchise, location, lease term, training and support. It also provides the asking price to ensure you find an ideal investment opportunity.
Once you have shortlisted the franchise businesses for sale Sydney, you must start the due diligence process. The initial step is to understand the franchise type and model. Different types include home-based, service-based, investment and owner-operator franchises.
You must select a recession-proof entity that shows growth potential and is getting marketed well. It must have a solid franchise network and must be rapidly expanding into new markets to increase its reach. These attributes will ensure you will have a considerable customer base and brand recognition right from the start.
After identifying the brands you find attractive for investment, contact the franchisors to express your interest. They may ask a few questions to determine your suitability as a prospective franchisee and answer your questions related to the business.
If they consider you to be a qualified candidate, they will provide you with the franchise disclosure document. You will get all the details about the business and can start the assessment. You must hire a professional accountant to evaluate the financial health of the business from the statements and calculate the value of the Sydney business for sale. You can compare the market value and the asking price and prepare for negotiations.
If the business appears to be healthy and ready to expand with new franchises in exclusive territories, you can start digging deeper. As a franchisee, you will be working closely with the franchisor. Thus, you need to meet them in person and find out more about the working relationship shared with other franchisees. It is also a good idea to understand the franchisee workplace essentials.
Enquire about the extent of training and support and the projected income from the franchise business for sale in Sydney. Speak to the existing franchisees to understand the workflow and ease of operating the business. Find out about disputes with the franchisor or suppliers. They will give you a clear picture of the franchisor-franchisee relationship.
If you are satisfied with everything during the analysis of the franchise, you can initiate the purchase process. The franchisor will provide the franchise agreement and the location details. You can visit the store and evaluate its visibility and signage prospects to ensure walk-ins and foot traffic.
The next step is to hire a franchise lawyer to understand the terms and conditions of the franchise agreement. Check the total cost of acquisition and ongoing expenses that will be incurred after the purchase. Make sure you are ready to shoulder the responsibilities mentioned in the document and follow the Franchising Code of Conduct. Speak to your family and friends and sign the contract when you are confident about the deal.
Wrapping Up
Buying a franchise requires an in-depth analysis of the business to ensure you enter a profitable relationship with the franchisor. Also, the values and operations of the entity must align with your goal and vision for a successful partnership. Remember the tips above to find the right fit for you.
Buying an established business is the one of the most lucrative decisions for aspiring individuals. Instead of spending years establishing brand awareness...
Australia is renowned as an open, thriving, and globally connected economy. With robust public and private sector collaboration, the nation boasts of...
Business2Sell is one of the biggest and trusted marketplaces for buying and selling businesses in Australia. With thousands of buyers and sellers visiting the site every day, it offers wider reach and extensive opportunities. Whether you are an aspiring entrepreneur, investor, or seller, you will find what you are looking for right here.
