Choosing a profitable franchise When thinking...
Choosing a profitable franchise
When thinking about career options, many people consider that there are only two choices available: taking up employment, where you work for someone else, or becoming self-employed and building your own business. But there is a middle ground; you could consider buying into a franchise. Becoming a franchisee provides you with the opportunity to run your own business but with lots of tools, training, advice, support and an existing customer network already in place to support you in making a success of the business.
However, some franchises are more profitable than others. If you are eager to make as much money as possible as quickly as you can, buying into one of the more profitable franchises in Canada could help you to do this.
Wherever your interests rest, there will be a successful and profitable franchise available to you, whether it is in food, beauty, automotive, advertising, or something completely different. However, you should be aware that these most profitable franchises do require a large investment from potential franchisees as many set minimum financial requirements. For example, some franchises mandate that applicants have a net worth of at least $500,000 and access to unencumbered funds of $100,000.
It is also important to keep in mind that buying into any franchise will incur costs beyond the initial investment, such as for franchise attorneys, setting up websites, renting or purchasing suitable premises, furnishing the premises, buying supplies, and recruiting and training staff where necessary - and that's before you get to the regular royalty fee payments. A lot of money has to be outlaid to buy into any franchise, and the more popular and profitable the franchise, the more you should expect to pay to become a part of it.
Because these stipulations relate to your personal wealth, many franchises that place financial restrictions on new applicants are unlikely to be content to accept funding via bank loans or to support you with buying into the business via franchisor financing. This means that for most people who are considering franchising as a way of starting their own business, laying their hands on this type of money just is not possible, so although the returns may be attractive, the initial investment can be exceedingly daunting. However, if you do have this sort of money available, there are definitely considerable profits to be made by buying into a profitable franchise.
Making Your Franchise Sustainable and Profitable
We've spoken a lot lately about the importance of sustainability. Not only is improving sustainability a government target, but it is also what consumers want, and demonstrating your business' commitment to a more sustainable future will help maintain consumer loyalty.
What is sustainability?
This word is bandied about a lot at the moment. Most people see it and merely think of being kind to the environment, and this is a part of it. Environmental sustainability is important as we want to make sure we leave the planet in the best possible state to be inherited by future generations.
Sustainability also relates to economic sustainability and social sustainability. It is important when considering sustainability to look at how to reduce costs and increase profits. Otherwise, your business will not exist into the future. A side benefit of cost savings is that they often result in environmental improvements - for example, switching off lights, swapping to energy-saving devices, and re-using packing materials - so it's a win-win scenario.
In terms of the social side, this mainly relates to providing your employees with a good work-life balance, which is likely to benefit your business both environmentally and economically. A happy employee is more likely to remain in your business, which means you don't have to lose time and money advertising and recruiting for vacancies. Keeping good people on board also means they can work pretty autonomously, which makes remote working possible. This reduces the need for expensive rent on office space, lighting and heating expenses, and vehicles on the road, which is also great for the environment.
What help is available?
Franchises related to the tourism industry may be able to benefit from Destination Canada's Canadian Business Events Sustainability Plan. Announced on May 31, 2022, training in sustainability will be given to more than 20 partner businesses, supporting them in developing their existing sustainability programs. Much of this work will be done via international association conferences, exhibitions, workshops and seminars. Destination Canada will also be hosting corporate meetings and group events.
Franchises that are not related to tourism may still be able to benefit from these events; lessons learned and progress against targets are bound to be published periodically and should be of interest to everyone with an interest in business.
The  Government of Canada has resources available for those interested in learning more about what support is available to businesses.
Why should I focus on sustainability?
A business that is focused on sustainability across all three pillars (environmental, economical and social) is likely to remain profitable into the future, and a profitable business means a continued income.
To best achieve sustainability into the future, it is important for a business to set goals for improvement and monitor their progress against these targets, making changes as necessary and continually striving for improvement.