A survey published by the respected FinWeek earlier this month which focused on franchising, and outlined the role played by the whichfranchise website, provided welcome exposure for us. It also generated an avalanche of enquiries. We responded to each one of them individually – it was hard work but we absolutely loved it.
However, experience has taught us that for every person who asks a question there are at least three who desperately want to know the answer to the same question but are too shy to ask. To assist them, we cover those topics that attracted the most interest, namely “ Access to finance” and “ Why consider a franchise?” in detail in this issue.
We also tell you about the forthcoming International Franchise Exposition (IFE), which is underwritten by FASA, and conclude with our usual Q&A section.
Let us start off with a bomb shell: We do not believe that it is particularly difficult to raise finance! In our experience, prospective franchisees enjoy a leg-up over those who want to start an unproven concept from scratch. This article will explain why we say that. More importantly, we'll also explain why every prospective borrower, franchisee or not, needs to demonstrate that he or she is up to the many challenges a business start-up poses.
Researchers keep telling us that South Africans are generally less entrepreneurially-minded than their counterparts in other countries with comparable economies. Read more…
Starting a business is hard enough; doing so by starting from scratch and in isolation is even harder. Provided that you do your homework first and select a franchise that fits your abilities and meets your needs, a franchise gives you a head start. Just consider this:
• You operate a proven concept under a recognisable trademark, using tried and tested systems and procedures.
• The franchisor will provide you with initial and ongoing training and support.
• Your customers know from day one what your business stands for.
The International Franchise Exhibition (IFE), presented by Kagiso under the auspices of the Franchise Association of Southern Africa (FASA), takes place from 3-5 May 2007 from 10:00 to 18:00 every day.
Once again, the venue is the Sandton Exhibition Centre, and visitors can look forward to an extensive seminar programme. In addition to meeting franchisors of reputable brands, you will be able to interact with banks and representatives of professional firms, namely lawyers and consultants.
During last year's expo, the whichfranchise stand soon became a focal point of interest and we have every reason to believe that this year it will be the same. Our stand will be manned by experienced franchise experts and we will be fully on-line. Visitors to our stand have an opportunity to search the website for franchise opportunities, using various criteria such as investment level, industry sector etc.
Be sure not to miss it.
A: This is the amount of money you are able to invest from your own cash resources, before taking out a loan. Most franchisors will insist that a prospective franchisee has access to between 30-45% of the total investment in unencumbered capital. This signals self-discipline, ensures commitment and reduces the strain on the new business's cash flow.
Click here to read more questions and answers
Chipsaway – Repair of minor dents and chips on vehicles
Placecol - Retailer of cosmetics and beauty products
Click here for a list of franchise opportunities
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