Are You Franchise Ready?
Obtaining a franchise could be the best choice you make; it has been an entryway to accomplishment for millions of people universal who have fulfilled their dreams of business ownership. Get it right and you would be glad you took the leap.
Check your own credentials:
Let us start with you. All you need to apply some critical thinking to your own situation, conduct a personal valuation, if you like. Well, it’s significant to ponder whether you are cut out to be a franchisee. Do you have a franchisee mentality? Franchisees need to be both entrepreneurial and compliant – it’s not a role that suits everyone. Think through what your family anticipates from a business and how much support of family and friends will be important to the success of your franchise operation, so get them on board at the beginning. Are you fit and healthy and bale to take on the challenges of business ownership? Are you prepared for long hours and hard work? Do yourself a favor and be truthful with your responses.
Have you done a budget?
Comprehend just what financial capacity you have and how you can get funding to buy a franchise; you will need to be honest about your debts and assets. It’s important not to over-stressed – lack of cash flow has been the downfall of many a business with the potential for prosperity. You will need working capital to tide you over while the business is in its early stages of development.
Critique the franchisor
You will also need to investigate the franchisor and find out who the management team is, what their career history is and how they are regarded within the franchise network. Have they had any legal disputes or financial problems? Does the franchisor have a vision for the business? What they can tell you about business trends and how the brand will be positioned in the marketplace in the future? What help will be provided in site selection, lease negotiation, supply chain and staff recruitment? Find out from other franchisees what you can expect in terms of support and how much attention is given to the start-up phase.
Understand the market potential
Consider the product or service, and what the potential is over the next few years. Garner information from the external sources – industry associations, market research firms, general media – to gain a clear understanding of the sector you want to invest in and the relative position of any brands you are considering.
Find a franchise
See what opportunities are available in the franchising sector before picking particular brands you are interested in. There are plenty of places to start researching key issues in the sector, the franchise relationship, and to get an overview of brands. Conduct an honest appraisal of your experience and skills that will allow you to align your talents and needs with a franchise that will provide the level of support and training you require. Each franchise system will have its own perfect franchisee profile but as a rule, with some technical exceptions, franchisors are looking to recruit for a go-getting attitude rather than existing aptitude.
Do you know where to turn to for advice?
It really is crucial to get good professional advice. Find a reputable lawyer and accountant who are experienced in the franchising sector. You might also seek guidance from other sources such as specialist consultants. Make sure your lawyer approves the franchise contract and that your accountant or advisor is satisfied with the figures. Thorough research or due diligence really is essential before investing in any business opportunity, whether or not that’s a franchise. Of course, the advantage of buying a franchise is the knowledge and experience on hand to help you select the right business in the first place and then to keep you on track to run a successful operation.