"The biggest risk is not taking any risk... In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." — Mark Zuckerberg
It’s a difficult economic climate for young people now. Opportunities are harder to come by - less jobs and intense competition for any available.
Subsequently, young people are finding the lure of starting their own business – becoming masters of their own destiny – an increasingly attractive prospect.
Franchising particularly can be the perfect model for a young, driven person with goals and the ambition to thrive. With a proven model and some expert guidance, that combination of experience and youthful exuberance can be a great match.
There are several reasons younger people can be a great fit for franchisors. They are generally digitally savvy and computer literate and often have a natural energy and enthusiasm to buy into the model.
A big obstacle for a lot of prospective young franchisees is the money. Having the capital or personal guarantees needed to even reach the minimum investment required by a franchise can be a problem, although there are options to look at.
Government-funded schemes
– In Ireland the Back to Work Enterprise Allowance and Short-Term Enterprise Allowance schemes are available to assist those looking ot become self-employed. The Microenterprise Loan Fund Scheme can offer loans of up to €25,000 for small, startups, while County and City Enterprise Boards also offer support.
- Banks will normally fund a high percentage of the start-up cost of a franchise that has a good, well established name. In Ireland Ulster Bank offers support to franchisees while Bank of Ireland has a specific Franchise Unit.
- Friends and family may also be willing to provide the financial resources for recognised franchises. It's important to treat this agreement as professionally as you can, but it's a popular option for many to seek financial assistance from a trusted and well known source.
Franchisors want franchisees they can mould because the system has a structure of rules and concepts in place that franchisees usually must follow without deviation.
For any franchisee there are crucial pieces of advice to heed. For a younger person embarking on that journey, these three points are especially important.
1. Do your homework
Identifying the area you have an interest in, is best suited to your strengths and appeals to you most of all is crucial. Finding something you generally care about makes the hard work seem so much easier so it it's essential to know what it is you're actually looking for from a franchise.
Once you've done that, you need to find the best fit for you in that area. Having a look at message boards or sites for franchisees can provide a franck, broad and honest appraisal of what it's like to be a franchisee with a particular franchise. Meeting franchisees face to face so you can pose any questions or concerns you have to them is also useful.
There's nothing wrong with taking your time and really exploring the business you’re buying into. If you're heart is set on going with a specific franchise then it's easy to ignore potential setbacks, so being prepared to take on board all feedback - good and bad - from those in the know is crucial.
2. Don't be afraid to seek out experience
No matter what your age or background, it's impossible to embark on any new venture without making some mistakes along the way. It makes sense to talk to people who've been there, done that so that you can at least sidestep some of the more common errors new franchisees make.
Keep an eye out for seminars or q&a nights that might be close to you. Talk to franchisees in the area you are looking to enter, or even ones who are operating in a completely different are to the one you are lookin gto enter.
A lot of the mistakes and pitfalls for franchisees are universal: not being financially or mentally prepared; failing to properly research your industry; mismanaging your time.
Tap into every drop of experience and expertise you can to help you start on the right foot.
3. Never lose heart and know what you're getting into
Starting off will be a challenging period, and it's important to stay positive and keep reminding yourself why you've taken this step. This underlines the importance of choosing a sector you have an absolute passion for: if you are feeling tired or a little stressed, knowing you're trying build something you have a passion for will drive you on.
Having the right support network around you can also ensure that you never feel swamped or in too deep. Make sure you understand exactly what your franchise agreement entails and that you can fulfil your obligations to the franchisor.
Franchise agreements are long-term binding commitments, with terms and conditions. Know that you will not be in complete control. Although you will own your own franchise, you still have to answer to the franchisor. By understanding, negotiating and preparing for the consequences of entering into a franchise agreement, you can ensure you will be in a better position to be a success.
Case study: Tim Harris (bfa Young Franchisee of Year nominee)
Tim Harris has been nominated for the 2015 bfa Young Franchisee of the Year award. He runs an Anytime Fitness gym in Welwyn Garden City in Hertfordshire, England. Anytime Fitness is a global gym franchise running local gyms, open 24/7.
What drew you towards becoming a franchisee?
I have always dreamed of owning my own gym. When I worked in the Anytime Fitness in Hemel Hempstead and the franchisee headquarters were next door it seemed like the perfect opportunity to make that dream a reality.
What was your background before you became a franchisee?
I have always been into fitness and coaching. I trained as a personal trainer and was doing that for a couple of years before taking on the franchise.
Why did you decide to opt for a fitness franchise?
With my background in fitness and the opportunity in front of me, it just seemed too good an opportunity to turn down. Doing a bit of research into different franchises, Anytime Fitness seemed to be a solid model with a great support structure.
Did you have any financial assistance?
Myself and my two business partners were able to secure the funds for the business ourselves.
What advantages do you feel your relative youth has given you as a franchisee?
During our pre-sale period, I think it definitely helped me keep my energy levels high so I
was able to greet new members with a smile and start building that important rapport straight
away.
What advice would you give to a younger person considering becoming a franchisee?
Use all the support and people around you that you can. There is absolutely nothing wrong with
asking for a helping hand and one day you will definitely be in a position to pass the favour onto
someone else who needs it.