The worst fear that many people have when considering starting their own business is that it fails.
External risk factors are critical to your chances of success. This is why the UK franchise industry has seen a phenomenal 10% growth over the past four years alone, as people seek-out tried and tested models to replicate rather than struggling to think of and implement their own idea - that may well prove to be unsuccessful.
However, no one business opportunity or franchise is the same, and each sector can fall victim to changes outside of your control. New industry legislation, an increase in operational costs and lack of consumer confidence are just some of the things that can negatively impact the profitability and sustainability of any business.
This is no different in the property sector, and at Platinum Property Partners, we are constantly helping people to understand, assess and minimise the risks of investing in property. Our model is purposely designed to maximise income that can withstand the three major external risks to investing in property:
• A property market crash resulting in negative equity • Interest rate rises pushing up monthly mortgage payments • Void periods, where the units are untenanted and there’s little or no rent coming in
However, no amount of due diligence and analysis or business planning can alleviate all risks, because ultimately, the biggest risk in any business is you and the decisions you make.
Goals don’t work. Decisions do.
Of course, the single-biggest threat to your success in any business is not actually taking the first leap of faith. As entrepreneurial philanthropist, Tony Robbins would say, if you do what you’ve always done, you’ll get what you’ve always got.
If you’ve determined that you can realistically achieve what you want, both financially and personally; feel comfortable that you’ve taken enough steps to ensure all external risks to the business have been mitigated; and have sufficient capital and knowledge to move forward, then don’t delay.
At Platinum, our Franchise Partners are often looking for a way they can earn a significant income without having to work ‘in’ the business every day. Our property investment model ticks all the boxes and we offer the added security of being an established franchise.
Maintain responsibility
That said, joining a franchise and following a proven model does not mean your business opportunity is risk-free nor renounce you of any responsibility. Whatever business you choose, you should understand that not making the right decisions, or any at all, will turn out to be the biggest risk. These are the internal risks that you do have some control over.
If you were to pursue property investment as a business without the support of a franchise, it would be down to you what strategy you follow, which property you buy and where, the builder you employ, the tenants you find and how effectively you manage the property.
At Platinum, we provide you with all of the training, mentoring and tools to ensure you know what properties to buy and where, how to cost-effectively maximise space and rental income and how to leverage your portfolio to fund future growth.
We will also make sure you know how to ‘plan for the unplanned’. Changes in personal circumstances, like divorce or illness will undoubtedly result in emotional hardship but can also pose a big threat to the success of your business. We will guide you to make plans for how your business will be managed, divided or passed on under such circumstances, minimising the risk of all your hard work going to waste.
