Digital marketers considering taking the plunge and establishing their own digital marketing agencies should consider the option to buy a franchise and grow using a model and systems that have already been proven to work. It is one of the best ways to hedge against the struggles that see many startups failing in their first year.
But could anything go wrong? Below we discuss four risk factors to research before buying a digital marketing franchise.
Level of Support for New Franchisees
The opportunity to get coaching from people who have been in the trenches and who know what it takes to succeed in an industry is why many people buy franchises. A franchisor must have a working system for training new franchisees, especially if you are in an industry that is poised for growth.
As digital marketing is in constant flux – SEO being a prime example – a good franchise must have a structured coaching programme that constantly evolves to adapt to new technologies and industry trends. If a franchise opportunity does not come with ongoing support should be an obvious red flag.
The Full Extent of Franchise Obligations
Buying a franchise ties you, as the franchisee, to a set of obligations. These are meant to protect the franchisor’s business goals and to ensure adherence to the franchise’s operating procedures, values and brand promise.
Before signing any franchise agreement, it is critical to understand what you are signing up for. You may even realise you’re giving up too much of the independence that made starting your own business so appealing in the first place. For starters, you should know how much control you will have over marketing and to what extent you can modify or customise operations.
Will I Get Exclusive Territory?
This is the first question most experienced franchise investors ask before buying a franchise. The reason is simple; you don’t want to buy a franchise where the franchisor actively courts new competition for you.
Knowing you are the only such franchise operating in an area will give you a clearer picture of the future earning potential of the business. If you are going to have competition, then let it at least not enjoy the same power of brand as you.
The Experience of the Franchisor
Choosing a franchise model over going it alone as a startup has many advantages, but investing in a franchise that has weak systems and a franchisor who lacks experience limits your chances of success. Before you buy a franchise, research other franchisees to find out how many of them are actually thriving.
Ready to take the plunge and start your digital marketing agency? Unibit has the experience and systems to help you succeed.