Buying a franchise is a complex, long-term investment that has the potential to change your life. If your business succeeds, you may never have to work for someone else again. If it doesn’t, you could lose your investment, and you could find yourself bound by strict non-competition covenants that prevent you from using what you’ve […]
Due Diligence
7 Potential Red Flags During Franchise Due Diligence
When you are thinking about buying a franchise, due diligence is the process of gathering the information you need to make an informed buying decision. While buying a franchise is inherently a risky endeavor, there are certain factors that can make a particular franchise opportunity riskier than others. In some cases, there may be enough […]
5 Steps to Due Diligence on Your Potential Investors
Even though the color of their money is always green, all startup investors are not the same. Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married—it is a long-term […]
7 Due Diligence Steps Will Validate Any New Venture
In my experience, consummate entrepreneurs tend come up with more startup ideas than they can ever implement, and some of the ideas may not even make business sense. But how does any entrepreneur know which ideas to implement, and which ones are best left behind? After all, most great breakthroughs, like a computer in every […]
How to Do Due Diligence on Investors
This is my Quora answer to “How do I perform due diligence on investors?” Choose an Investor Like You Would a Spouse I’m so glad you asked this question, because it’s really important and vastly underemphasized. You should choose an investor like you choose a spouse. Due diligence is essential. First, tell this person you […]
Get to Know the Other Franchisees
As you move forward with your due diligence and continue to gather research on the variety of opportunities the franchise world has to offer, don’t forget to really spend time talking with the existing franchisees of the businesses at the top of your list. Investigating their experience with the business and learning about the process […]
Franchise Success Rates
Choosing a franchise opportunity is a big decision, and big decisions are usually risky. So it’s natural to try to get some kind of idea of your chances of success before you take the plunge. Natural, but not easy. Ask Google about the success rates for franchises and you can find numbers ranging from 95% […]
