Australian Franchises

Risk Management Plan

Risk Management Plan

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 Franchsing
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’.

 

Mark Fernandez
Director
Business Development Alliance
www.bda-online.com.au
mark@bda-online.com.au


Author:Mark Fernandez, Business Development Alliance

Latest Franchise News

Australian Franchises Article Image

FAMILY DRIVES COFFEE CONVENIENCE IN BRISBANE

Ralph Fioretti is a man on a mission; to bring Zarraffa’s-style drive thru coffee to Brisbane for the first time. ...Read more

Australian Franchises Article Image

KING IS THE NEW QUEEN

    More  Australians  are  buying  king  size  beds  than  at&nbs...Read more

Australian Franchises Article Image

Twice the Coffee for Major Gold Coast Arterial Road

In what may be considered a surprise move, franchisees Jimmy and Bernadette Williams will open the doors today to another Za...Read more

View more Franchise News

Expert Advice

Australian Franchises Article Image

What is the formula for franchise growth


In order to penetrate a market, rapid franchise unit growth is important. However few franchises appreciate the impact of...Read more

Australian Franchises Article Image

Six 'Cs' for international franchise expansion

With many franchises looking to expand their franchises internationally we thought it was time to revisit Asiawide Franchise...Read more

Australian Franchises Article Image

Event Apps and Exhibitor Portal Launched.

Event technology company, iVvy, is adding more valuable, inclusive features to its eventmanagement system; increasing productiv...Read more

View more Expert Advice
EmailRSSLinked InTwitterFacebookRSSLinked InTwitterFacebook