You are considering buying a franchise. Many people would like to run their own business, and increasingly people are considering franchises. Are you ready to get started?
Here are three simple questions to help you determine if you are in a position to begin the discovery process now.
What is your motive for wanting to start a business? – This question might surprise you but you will probably be working with a franchise consultant, and whether or not you choose to do so, you still need to know what you are looking for in order to find it.
Are you mainly after independence? In most franchises you will be following a set business plan that has worked well and does not have place for you to have much input into it. You may like how it increases your chance of success but it may not be your idea of independence.
Are you looking for flexible hours? That will definitely fit some franchise models and not others.
Are you wanting to change careers? Again, that will fit some franchises while others prefer you have some industry experience.
“Know yourself,” is always good advice. In franchising, it is especially important to put some thought into what will best fit you and your goals. That really is the starting point.
Is your timeframe within 6 months? – How long it takes to actually be up and running varies quite a bit between say, a home handyman franchise and one that requires building a motel or restaurant. Still, unless you are ready to commit within six months you are probably in the stage of just thinking about the idea. There is no point in filling out an application or giving a snapshot of your financial situation if it will be outdated when your target date finally rolls around.
Do you have sufficient capital, usually access to at least $50k liquid? – Some franchises require much more, but much of that can often be financed. Franchisers want to see a significant financial commitment on your part. It will need to be liquid, in other words, available for you to write a check for $50,000 or more.
If you have a good handle on your motives for starting a franchise, are ready to actually jump in within six months, and can write a check for at least $50,000, you’re ready to make the call. Call a franchise consultant and make your dream a reality!