How much is a brand worth when deciding whether to join a franchise? Throughout Australia there are plenty of agencies willing to sell their letterhead and designs to almost anyone willing to pay the money to get it. Real estate names like LJ Hooker, Ray White, Richardson and Wrench, Laing and Simmons, First National, Hocking Stuart and now McGrath are all competing with many others to get the agent come entrepreneur’s buck.
To secure the franchise there are a number of requirements – an office in a prominent position is usually one of them. This in itself is cause for alarm in a world where internet is a part of life and online searches are an everyday thing. Most of us use Google some or most of the time as an internet search engine, yet how many of us have been to the Google office? Where is their office?
The answer is probably not one person reading this blog has visited a Google office, yet the Google brand is massive worldwide and is a shining light indicating how business will be run, won and lost in years to come.
As you might be able to tell by now I am not a fan of outdated business models with high fixed costs that hinder innovation. Real Estate is becoming more and more an online industry where agents and brokers visit clients or meet at properties – not the real estate office of old. It’s estimated that spending on newspaper property advertising will decrease by around 18% this year and the trend is tipped to continue.
Our world is changing quickly and it is essential to look forward to how the world might look in 5 years time before committing to a franchise that might not allow you to best keep pace with the changes necessary to be successful – one of them is to keep fixed costs low!