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Setting Up A Successful Franchise With A BFA Approved Accountant

Define your Franchise Investment

The first step you must take before investigating franchising is to establish exactly what level of investment you can comfortably afford to make. Don't forget that as well as the initial franchise costs, there may well be other setting up costs and you will need some working capital until the business is running profitability which may take a year or more. Remember, it is better start out with more than you need rather than less.

Does it Suit You?

Far too many people forget to assess their own suitability to the business and this mistake can lead to years of unhappiness, not just for you, but for your whole family. You need to determine whether the franchise suits you, what are your needs, your wants and also what are the needs and wants of your family.

Choosing the Industry Sector

You must consider the market and avoid industries that are 'fad industries'. This needs careful consideration and also needs to be linked to your own abilities and what you would be happy doing.

Getting Professional Advice

Advice will come in three forms:
· Legal - BFA approved solicitors
· Financial - BFA approved accountants
· Commercial - from other franchisees, the franchisor, the British Franchise Association and other bodies.

Evaluating Information

Buying a franchise can involve a lot of emotion, as it is most probably a life changing decision. It often helps to get outside assistance at this stage from someone who is not emotionally involved in the research that you have already made.

Making Your Decision

After carrying out the stages mentioned above, your decision to join a franchise should be relatively easy, but if you don't feel 100% comfortable with the decision, start the process over again. It is also a good idea to check if the franchise is registered with the British Franchise Association (BFA).

Obtaining Finance

Entrepreneurs looking to invest in a franchise business can be sure of two things. Lenders will want to see strong business plans and will be prepared to lend up to 70% of the initial start up costs. Again, seek professional assistance with your business plan to make sure that the business has a realistic chance of viability. With our wealth of experience in advising franchisees we can help you to set  up a Business Plan ready to obtain funding for your Franchise.

Working As A Franchise

When you have successfully negotiated all the above , the difficult part is making your business work. You must regularly compare your achievements with your business plan and adjust your business methods or the plan, so that you know where you are going, how you are going to achieve it and when.

Success

A franchise business has considerably more chance of achieving success that any other business starting from scratch. We hope that having followed all the above processes, you have invested in a successful and profitable business, but again, you need to seek professional advice, to ensure that you are not paying too much money to the tax man!

For advice on how to save tax and for further information contact: franchise@moco.co.uk

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