Risk Management PlanNovember 3, 2011
In today’s busy world of small business, and franchising, it is vitally important to minimise the risks involved, in what is potentially the largest investment of time and money that you will make of a life time.
Risk and reward can often go hand in hand; this of course means that the greater the risk then the greater the reward.
In simple terms, risk in business is ever present, so it is even more important to fully understand the extent of that risk and balance it against its potential rewards.
By adopting the R.I.S.K. management plan promoted by specialist franchise advisors, BDA, it is relatively easy to achieve a degree of comfort about those risks and why they are present.
In four easy steps, it is possible to systematically approach this exercise, and those steps are:-
R – Research Franchising
I – Investigation
S – System
K – Knowledge
RESEARCH – you can never do enough research!! The key here is research, research and more research!!! The starting point should be to discuss your intentions with franchising experts as not everyone is suited to franchising. From there, you should read as much about the franchising sector through franchising magazines, the internet and attending franchising exhibitions. The Franchise Council of Australia (FCA) website is a good starting point www.fca.com.au this will give you a strong understanding of the sector that employs over 630,000 Australians and contributes approximately $130b to the Australian economy.
Your next step is to identify a few opportunities that appeal to you – I suggest that you limit your selection to a maximum of two different sectors and no more that six or eight different opportunities, any more that this will only confuse you in your decision making. It is imperative to INVESTIGATE those opportunities in some detail. Comprehensive information can be obtained from Franchisors, their websites and even visiting the franchises. The more information you can obtain will naturally assist you make a more informed judgement into the type of business that is suitable for you.
By looking closely at the SYSTEM that drives a particular franchise business, will enable you to ascertain the level of professionalism that they have to offer. It is important to ask the hard questions on training, franchisee support and the level of detail in the operations manual – after all this document should contain all the required information to operate and drive your business’s profitably. Considerations must also be given to businesses that are more suited to your skill sets and personality.
Finally, it is important to gather as much KNOWLEDGE of your final selection before entering the industry and this is easily achieved by speaking with people already in the industry and /or even in the franchise network that you have chosen.
The old adage still applies that ‘if you fail to plan then you plan to fail’
Business Development AllianceBusiness Strategy, Franchising, Uncategorized. Bookmark the permalink. ← Put Your Operations Manual Online Thinking About Buying A Franchise? →