Franchise Solutions offers some mistakes you’ll want to avoid when finding a business:
- Calling only a handful of existing owners. Call them all if you can. Get a feel for the franchisor–franchisee relationship, and ask them if they would do it all over again or not.
- Acting as an expert. Acting like an expert in something when you are not is never going to turn out good, especially when you are making the potentially biggest purchase of your life. Consult with experts. It will be money well spent saving you from something you don’t want to get into or getting you into exactly what you dreamt of.
- Disregarding solid opportunities in industries that don’t initially appeal to you. Sometimes the most profitable business endeavors are not sexy. In fact, some are downright gross. This doesn’t mean the product or service isn’t in huge demand or the business model isn’t solid. Explore the unexpected, maybe gross and unappealing if the model and demand is right.
- Not planning for your own salary or financial needs and expecting a ramp up time associated with profits. It can take months to make back the money you invest in a business, and not planning for the lack of income you will have during the ramp up time of a starting a new business is a huge mistake. It can put stress on relationships and make success challenging. Make sure to plan for the ramp up time of your new business in advance of signing the franchise agreement.
- Not understanding everything you will be held to according the Franchise Agreement. The Franchise Agreement that you sign is the letter of the law when it comes to what you will be expected to abide by. Read it and understand it so you are prepared to hold up your end of the bargain.
This article was originally published by Franchise Solutions
Published: October 14, 2013