In Golf and Franchising, Never Listen To Your Mates

Imagine a couple of guys standing in a golf shop discussing their swings. One of them asks a question and the others are full of advice. Even better, they offer to take him straight to the range and give him a few personal tips. Then the pro leans over the counter and says, "sir the best tip you'''''re going to get today is this: when it comes to golf, never listen to your mates."

It can be the same with choosing a franchise system. There's a wealth of opinion and ideas out there, but a lot of it is based on hearsay, bias, vague recollections of media stories, the advice-giver's own financial status, personal interests and so on. The problem is that some of the opinion bandied about might well be right, leading the recipient to believe that alt of it is. Choosing the best franchise system for you is a detailed and highly personal exercise. It requires a clear-headed look at what you're expecting out of a business and are happy to put into it, a firm idea of what to look for, access to accurate information and a lot of research.

Bear in mind that franchising is an $80 billion small business sector encompassing a vast array of business types, structures, fee systems, support mechanisms, network sizes, entry levels, personalities, commercial models and levels of experience necessary. With so many variables in play, you are highly unlikely to get fully informed, well reasoned advice off the cuff. One of the few constants is that if you choose a franchised business, the stats say you have a 97% chance of being successful in any year, whereas if you choose to be independent, the overwhelming odds are that you will do your shirt within five. Beyond that basic fact, the parameters expand exponentially.

Returning to the golf analogy, a pro will look at your current game, strengths and weaknesses, stamina, flexibility, mental attitude, level of knowledge, and ambition, the overall package of resources you have at your disposal and have a pretty good idea of the game you can aspire to. A pro will teach you how to read the course, when to take risks and where to play safe, or for that matter, suggest you take up fishing! In contrast, a mate will tell you, "Swing like... this!"

The first thing the intending franchisee needs to understand is the nature and rules of the game he or she will be playing. Taking up a franchise is not like going out on the golf course for a Saturday hack. Many people are betting their personal fortunes on achieving par or better. Sure, in a franchised business they typically have a caddy who knows the course and a proven set of clubs, but does the lie of it all suit their individual strengths and personalities? If their world is on the line, it had better.

The key is education. Leaving your mates gabbing on at the 19tn and going to the pro. Organising some lessons. Appreciating that some courses need a more powerful drive and are more difficult to play than others. In franchising, the Franchise Council of Australia (FCA) is your pro shop. Pretty much everything the intending franchisee needs is on offer and most of it is free.

So the first thing to do is get online to www.ubetheboss.com.au where you can gain an overview of the sector. The various fields won't make you an instant expert, but you will get a solid grip on what franchising is all about and the Code of Conduct that franchisors must adhere to as well as a good idea of the systems on offer in Australia. Pay particular attention to the Education field and its subsection, 'Getting Started in Franchising'. This has been prepared by the FCA's The Franchise Academy specifically for intending franchisees, providing:

• A thorough background of franchising and what to look for when selecting a system

• A detailed personal checklist that guides you through your selection process

• An ACCC video program -Franchising - Is it Right for You?

• An on-line workshop developed by the Department of Innovation, Industry and Regional Development in Victoria (but available to all), concerned with:
  • Evaluating yourself
  • Evaluating a franchise system
  • Seeking professional advice
  • Various interesting and educational links

In any franchise system, it is quite possible that a small percentage of franchisees have a bee in their bonnet at a given moment. It's like any partnership or marriage. Try to speak to as many as possible so that you get a well-rounded impression of the system.

Have your key questions prepared in advance. A rambling conversation, or calls back are unlikely to be appreciated. When you become a franchisee yourself, you will understand this!

Here we return to education because you have to know the right questions to ask. That's what The Franchise Academy is there for. In fact, once you have completed the on-line workshop and trawled through the other initial material, you might consider taking one of the Academy's simpler formal courses, especially if you will not be making a firm decision on your choice of system in the immediate future

You might also consider membership of the Franchise Council of Australia, even at this early stage. The Council offers a wide range of member services and discounted access to valuable publications and FCA events.

You might also consider membership of the Franchise Council of Australia, even at this early stage. The Council offers a wide range of member services and discounted access to valuable publications and FCA events.

By Michael Keaney of Which Franchise? Magazine