Is a franchise the right thing for you?

Starting your own business can be a very expensive thing to do, but there are options if you want to dip your toe in the water before taking the plunge – a franchise.

If you have a small nest egg to invest, but don't have that big idea worthy of the Dragons Den, or maybe you just feel like you need a little extra support, then a franchise is definitely something worth thinking about – particularly in today's economic climate, where starting a business from scratch can be difficult.

Are you cut out to be a licensee?

This really is something you must ask yourself and sit down and think about as getting involved in a new venture is one of the most important things you will do, and you need to be entering into it with your eyes well and truly open to the benefits and, of course, the possible negatives.

It is important to be critical of yourself when making the decision – so have a minute to look at your strengths and weaknesses – do you have the temperament, time and skills to run your own business?

After careful thought, if you come up the answer of yes then taking on a franchise may be the right thing for you – but what is the next step?

Make sure everything is in place

When setting up a franchise you will need some capital, so first things first, make sure it is financially viable for you to take on this responsibility – it's important to note you will probably need at least a third of the set-up costs for a less well-known franchise to get the funding necessary to kick start your new venture.

Get a full list of existing franchisees for the company you are thinking of getting involved in – try to visit as many outlets as you can and, of course, talk to as many people as you can.

One of the most important things is not to be fobbed off by the list of people the franchisor offers you as these will, in all likelihood, be the most successful people, who won't have a bad word to say about the organisation.

Once you have sat down with all the facts and figures, make sure you have the support of your friends and family and get stuck into your new adventure!