For anyone thinking of buying printing franchises, the first order of business is to determine how much capital you need to fund the venture. Besides the initial franchise fee, there are other additional costs to meet before you can set up shop.
You will need to find a location, pay rent and the necessary deposit, brand the shop, buy equipment and hire employees. You will also need to buy inventory and supplies to get you started.
However, it is not enough to have sufficient capital to get the shop off the ground. You need enough money to tide you over until the business can support itself.
Consult widely
The worst possible mistakes you can make is starting a business without knowing what your total investment is going to be. Joining a franchise saves from this mistake as you have unrestricted access to the franchisor and its network.
The franchisor will supply you with the franchise disclosure document, which details every aspect of the franchise operation, including the finances. Again, you will have the names and contacts of every franchisee of the brand.
These seasoned entrepreneurs can offer a comprehensive breakdown of the total capital injection necessary to get started comfortably. Without such a base of reference, you would have to do the legwork yourself, and this could take a lot of your time and effort.
Pick a location wisely
It would be unwise to pick the first location that you come across. You need to be sure that check out the competition, carry out a traffic study, and establish the demographics. While carrying out such studies would pad your initial costs, they’re instrumental to the overall success of your business.
Failing to do so might lead your enterprise to fail should you not to capture a large enough market share. Picking a weak location would lead you to incur additional expenses should you need to relocate the store. Doing your due diligence lets you save on both time and money.
Cost of setting up shop
All franchise locations feature a similar setup — from the layout to brand colors, and you need to ensure that your outlet meets these requirements. Once you’ve identified the store location, you’ll have to pay security deposits on rent and utilities.
You will also incur professional fees to remodel the place to fit the franchise requirements. It means getting a contractor to remodel the space, buying equipment, furniture, décor packages, and signage. Expect to spend more on lawyers and other professional if the building is not zoned for the type of business you plan to set up.
Depending on the size of your operation, setting up shop can be quite a capital-intensive venture. Therefore, you need to account for all possible costs that you are likely to incur when opening a new store.
You will have to comply with the brand’s requirements to the letter when buying into a franchise. Having ready capital lets you hit the ground running, and increases your chance of success.
