If you’re considering franchising as an alternative to your 9-to-5, you’ve come to the right place. But wait! Before you make any rash decisions, like quitting your job, there are a few things you should consider first.
Yes, franchising is a great way to own your own business because it’s a concept proven to work, but we’d be putting it lightly to say it isn’t for everyone. It takes serious commitment that comes with its fair share of responsibility.
So, how do you know if it’s right for you? Great question. Getting to know yourself, assessing your assets, and defining your goals is an excellent place to start. But here are the seven questions you should ask yourself before considering a franchise opportunity:
1) Are You Financially Apt?
If you’re a smart bookkeeper in your personal life, that skill typically transfers to your professional life as well. Franchisors want franchisees who can create and stick to a budget. As a business owner, you have to be able to properly manage funds to ensure your employees get their checks, the product or service gets to market and, if business slows, to make sure you can ride out a dry spell with savings.
2) Do You Have the Capital?
Starting a business, even in franchising, requires hefty start-up costs. You have to make sure you have the capital to get your business up and running. Franchise investment levels, including the initial franchise fee, can range from $10,000 to upwards of $1 million or more. Taking inventory of your capital and knowing your investment budget gives you a better sense of what opportunities are within your means. Remember, although you may already have an idea of what industry you want to franchise in, you may not have the capital required to support the concept.
3) Are You Ambitious and Assertive?
While franchisors often provide pre-opening and ongoing support, you still need to be assertive enough to make your own decisions, create and reach your own goals, as well as have the know-how to grow your business. Keep in mind: not all franchises have the infrastructure for constant local franchisee support and, in any case, you’re the boss; you should be resourceful and confident in your ability to navigate any situation.
4) Are You Teachable?
A “proven concept” means you must follow a structure laid out by the franchisor. You have to learn the ins and outs of their business model and operational systems. That also means adhering to a strict set of rules and guidelines, no matter if you feel like you can improve the business model using your own methods.
5) Are You Good at Communicating?
You will potentially be in contact with the franchisor’s executive team on a regular basis; open communication helps support the success of your business. You must also be able to maintain strong relationships with your employees, other franchisees, vendors—and most importantly—your customers.
6) Are You Willing to Get Your Hands Dirty?
While some franchises offer absentee ownership opportunities, many others require hands-on management. You have to be willing to show up for your business, employees and customers whenever necessary. Sometimes, you may even have to get your hands dirty, especially with smaller franchise concepts that don’t require many—if any—employees.
7) Do You Have a Strong Support System?
This one is an absolute must. Running a business is a full-time job, whether it’s a franchise or a start-up. At times, you’ll be forced to make several sacrifices for the benefit of your business and success. It’s essential to have a strong support system of friends and family who understand the demands that come with it.
If you answered yes to all of these questions, it looks like franchising might be a good fit for you. Now it’s time to begin the search for the perfect opportunity. Read our blog about what to look for in a franchisor. Otherwise, let the search begin, and there’s no better place to do it than America’s Best Franchises. Click here to start your future in franchising.