Print shops

Tips for success

• Printing is moving towards the business to business sector and away from the high street, so bear in mind that this is an industry in flux. For high-profile business deals you will need to have some experience of dealing with other companies. Newer franchises, such as AlphaGraphics, maintain they are already leading the way. But it is with the two older franchisees that a potential problem looms.

  Brian Duckett, managing director of Horwath Franchising, maintains that more traditional franchises are less keen on corporate buyers because they pay less for buying resales in bulk. In his experience franchisors are also reluctant to move towards corporate buyers, believing such a move will change their image.

  This is bad news if you plan to sell for a profit in 10 years' time. Also, contrary to Duckett's comments, Prontaprint now has a strategy to attract people interested in buying multiple franchises. So if you aren't a corporate buyer you could end up paying more in the first place. Until franchisors have clarified the trend, be wary.

• Remember that high set-up costs can be a financial risk. Hayes at HSBC says, "Franchisees need to be wary of the level of overheads involved in setting up a franchise. Getting payments in on a 30- or 60-day basis, leasing equipment, sorting out premises, you need to make sure you have sufficient finances at the outset."

• With such a buoyant market at the moment it's easy to assume that you will automatically do well. But this won't be the case. Both franchisees and franchisors have stressed the importance of following closely the business model created by the franchisor.

• You should focus on giving good customer service. Customers are very good at visualising what they want but not so good at communicating it. To avoid frayed tempers later, make sure you get as much information from them as possible then repeat back exactly how this will look.

• To a certain extent the franchisor will be able to help you stay ahead of the competition while you concentrate on the business. For example, in the early days don't take it on yourself to go out and negotiate deals on the latest equipment. This is one of the franchisor's more useful functions, so make sure you take of advantage of it.

• Concentrate on managing your staff and making sure they are happy. Once this side is sorted out you can turn your attention to other things.
  
  
• If you are buying an existing franchise you will also be taking over its current equipment. Obviously whatever equipment you inherit will affect the type of business you are initially able to get. Multiple print runs will be difficult if you've only got one printer.

• If possible, take someone with you who works for the printing industry to assess the equipment before you buy. This will help you realise the actual value of the centre you are taking over. If you are new to the business, it will also stop you taking on jobs you are not equipped to deal with.

• The franchisor will support and help you, but, at the end of the day, the more research you can do around the subject with other sources - banks, other franchisees, people in the industry - the better your chances of success.