Create your business
Before you start: take a look at yourself!
Becoming a business owner is not easy!
By creating your business, you will be driving your new life. In the latter, your motivation will play a role more than vital. In the absence of the latter, it is all your entrepreneurial project that is in danger …
So before you start, take stock of yourself, your desires, your motivations, your strengths and weaknesses, etc. You need to be aware of the changes in the life of a business owner and be ready to face the challenges ahead!
Start your own business: the steps
After careful consideration, are you sure to become a business owner? So you can start creating your business! Here are the 6 steps to creating your franchise!
1) The initial idea
First step of your project to create your franchise business: your business idea, which will, like you, be scrutinized.
It is important to take the time to analyze your entrepreneurial project in a critical and objective way. This is also the time to receive the advice of people you trust or experts who know the sector in which you plan to start!
This first step is essential, it will define the feasibility and reliability of your project.
2) The definition of your project
Your business idea has been successfully submitted to your entourage and to experts in the sector you are embarking on? Now is the time to define your project to start your franchise business!
To do this, start by summarizing your idea as succinctly as possible. It must be summed up in one sentence!
Once you have captured and summarized the essence of your business, you must then develop your project.
For that, define in each aspect, by elaborating a roadmap which will give you a vision of the way that you have to go.
It is also the moment to reflect on your commercial approach:
- How will you sell your products or services?
- How are you going to make a profit?
At this point in your project to start a business, many more questions will come up. It is important to write down these questions and organize them according to the people or organizations you will need to ask them afterwards.
3) Market research
A concept is only viable once it has proven itself in the target market . However it would be unthinkable to launch its concept of business without having to try to know if yes no it will be viable …
And this is precisely the role of market research: to help you determine where the clientele you are targeting, and at what price to offer your services or products.
A market research is very useful to prove to investors that your project is worthy of your interest and that the risk you will take together when starting your business is calculated.
4) The projected financial study
This is a projection of the accounts of your business over the first 3 years of your business. This study stems from your market research, and is also a strong argument against investors.
This document is also a great help to you to apprehend your entries as well as your cash outings, and thus to detect in advance any problems that you will encounter:
- Will you need significant working capital to run your business?
- How much sales volume will be needed?
- What will your fixed charges be?
- When will you be able to reach the equilibrium point?
It is to these questions that the forecast financial study will try to answer.
5) Financing your business creation
Previous studies will allow you to highlight the costs associated with setting up your business and its financial needs, and thus determine the starting capital you will need to get started. And there is the question of financing. There are many solutions to finance the creation of your company:
- Are you going to take one or more associates?
- Are you going to seek external funding?
- Are you going to try to get business start-ups?
- Will you commit a portion of your estate as collateral?
Your decisions at this stage will be vital for the rest of your project when you present your project to the banks.
6) The administrative and legal steps
Last step of the creation of your company: the administrative and legal steps . As a first step, contact your Chamber of Commerce and Industry, or the Chamber of Trades and Local Crafts. These two organizations will give you all the advice and help you need to carry out the different steps involved in starting a business:
- Drafting of the statutes of the company;
- Choice of legal status
- Registration with the Tax Center;
Is creating a franchise business different from creating a traditional business?
The steps we detail above are the same whether you choose to start a franchise business or independently. However, when choosing the franchise, the big advantage lies in the fact that you will be able to count on the help of your franchisor who will accompany you throughout the process of setting up your business.
The role of the franchisor is to help its franchise partners create a profitable business and lead them to success. The relationship between the franchisee and the franchisor is a win-win relationship and this is one of the factors that explains the success of the franchise model!
In exchange for this assistance, franchisees must accept some counterparts:
- Financial royalties that finance the services provided by the franchisor;
- A certain loss of freedom: you will always be master of your company, but you must agree to comply with the constraints dictated by the head of the network, which are usually essential for you to reproduce the success encountered in other outlets .