Every investment comes with its own set of inevitable risks and its very own returns. There are certain franchise investment tips which a franchisee can utilize for long-term management and greater returns.
Calculate Reasonable Investment Returns
As a new franchise owner, begin by first calculating the returns on your invested capital. Every investment is generally considered a risky venture; thus, set your anticipated returns at 15 percent of your invested capital. Alternatively, you may wish to calculate in terms of every $100,000 of your invested capital, which should provide returns of approximately $15,000 per annum.
Calculate Investment Time
There are a series of variables involved in this process of investment time calculation. Firstly, ask yourself how much your time is worth in general. Secondly, do you spend more time on your franchise investment than you used to spend at your previous workplaces? If it is easy for you to trade your invested time for around $60,000 of annual income, then it is considered a worthy investment indeed. Anything less than what you used to earn would be considered reduced returns for what your time is worth.
Factor in Lifestyle Changes
A business provides you with great flexibility, which may also exempt you from any outstation assignments. During the process of factoring in lifestyle changes, you need to consider what your previous position expected of you in terms of the quality of your life after standard working hours. That also contributes to the total returns of your franchise investment, though not in monetary form.
Evaluate an Investment Opportunity
Take note of the full investment amount that you are going to make. Subsequently, determine the average income that the franchise can produce in its third operational year. There needs to be at least an income of roughly $30,000 every year for an initial investment of $200,000 before you can deem the investment a fruitful venture.
Raise Awareness through Word of Mouth
A franchise is much easier to market as the original brand already possessed a certain degree of market recognition before you invested in it. You can further increase brand awareness by making your products and services worthy of word-of-mouth marketing. You also need to get real feedback from paying customers to give newcomers that sense of assurance they need before patronizing your franchise.
Promote through Influencers
These days, it is to our benefit that access to social media is vastly available on various platforms. Take advantage of this situation and identify the right social media influencers. Consider working with classroom teachers, edtech experts, or even former teachers who have just become professional social media content creators. Gather the resources you need to launch and have the influencers promote your products and services to their pool of followers.
Always bear in mind that early exposure is a highly rewarding form of marketing which will grant you the boost you need to generate interest for your franchise investment.