No capital? No problem
Being stuck in a job that you don't enjoy makes life...
Becoming a franchisee is a huge commitment that impacts both a
franchisee's personal and financial lives, so it's no wonder that
many people invest a lot of time and research into it before making
any commitments. After all, moving from working for someone else to
working for yourself is both exciting and scary at the same
time.
However, despite all of your prep, you may still be harboring some
common false beliefs about franchising in Canada. Here are three
common myths you can let go of today so you can enter the next
phase of your working life armed with the correct information.
Myth One: Only
Franchises in Competition-Less Industries Can Thrive
This is simply not true. Some of the fastest-growing franchises in
Canada right now are part of the fast-food industry, according to
Entrepreneur Magazine's article "Top Fastest-Growing Franchises for
2015", and that is a segment that is packed with competition.
In a franchise, it is the proven processes and systems that drive
success, not how much competition there is. A strong understanding
of a market and industry and what is missing from those areas helps
businesses become successful even against stiff
competition.
Myth Two: Franchises Are Too
Expensive
This is yet another popular myth. There are franchises in Canada
that require a larger investment, such as more than $1 million, but
there are also franchises with investments set at less than
$10,000. The cost varies widely by industry, brand and other
factors, such as real estate and inventory. Generally speaking,
bigger, more established franchises will cost more to get into than
smaller ones because of all the benefits and security that come
with investing in a big brand.
As a potential franchise owner, chances are you'll only need about
half of your initial investment in liquid capital. Many franchisors
partner with financing companies to help franchisees cover the
total investment cost, and some even offer financing themselves.
The Canada Small Business Financing Program also allows qualified
borrowers to use the funds for some of the costs associated with
buying a franchise
(www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/h_la02855.html).
Myth Three: The Only Options Are Fast Food and
Retail
While fast food and retail are pretty well known in the franchise
industry, the truth is that there are a number of various franchise
opportunities in Canada. These include animal care, real estate,
staffing firms, tech services, cleaning, education, wellness and
heath, and home improvement. According to the Canadian Franchise
Association, there are actually around 1,300 different franchise
brands operating in the country today.
Before you embark on or finish your franchise search, keep the
following myths in mind so you don't talk yourself out of the right
opportunity based on the wrong information.