When making any big decision in life, you must have a complete understanding of what you’re jumping into. Maybe you’ve heard about the benefits of franchise ownership and think you’re ready to make an investment. Don’t get ahead of yourself!
While franchise ownership is an exciting opportunity, there are some critical aspects for you to evaluate before making the move.
1. The Goal
Prior to even beginning your search for the right franchise opportunity, consider your own personal goals:
- What do you want to accomplish by investing in a franchise?
- Are you looking for a second career option?
- Are you searching for a greater work-life balance?
Setting goals for your personal life and your career makes the evaluation process much easier. If you’re interested in spending more time with your family, for example, look for a franchise model that provides solid marketing and operations support so that you’re not bogged down by the time-consuming aspects of business ownership.
When you have clear goals established to assess each ownership opportunity, you’re better prepared to choose the right franchise – one that meets your most essential requirements and advances your plans for the future.
2. The Risk
Every significant change in life comes with some level of risk. Taking out college loans, starting a new job, buying a house, getting married – these all have the potential to alter the stability of your finances.
So, before making a major investment in buying a franchise, assess your personal finances and be realistic about the risk involved:
- Are your finances stable enough to support the jump into franchise ownership?
- Do you have enough capital to cover the upfront cost without breaking the bank?
- What would happen if you lost your investment to a poor franchise model?
Understand that choosing the wrong franchise could have a negative impact. You may lose some or all of your investment if you select an opportunity that isn’t a good fit. If this is a concern for you, search for a corporate partner that offers a high level of support, including benefits like:
- Location selection assistance
- Financial guidance
- Training and hands-on learning opportunities
- Marketing and sales support
- A mentorship program comprising other franchise owners
3. The Partner
Once you have a full picture of your goals and finances, you must think critically about any franchise organization you’re planning to partner with.
To uncover all of the positives and negatives of each franchise model, be sure to do thorough research and conduct meetings with corporate representatives as well as current franchise owners. You should even consider attending a franchise expo or conference to help you find viable options. In the end, you want to know:
- Is the organization supportive of its franchise owners?
- Does the corporate entity offer guidance to new investors?
- How will this partnership ultimately help you reach your career goals?
Remember: You’re not just choosing a franchise; you’re selecting a long-term business partner. So, make sure you know the facts before you make a commitment.
4. The Model
There are a variety of benefits involved in the franchise model of business ownership. One of the greatest? Experiencing all of the perks of being a business owner without the hassle of starting your own business from the ground up.
You’re buying into an established business model, with methods that have been tested and proven. You skip many of the difficult aspects of business ownership, like branding and marketing your business or developing and implementing processes.
But, how does this model align with your interests, lifestyle and financial constraints? Familiarize yourself with the franchise model and the contract with the corporate partner.
Make sure you know the ins and outs of your responsibilities, as well as the connection and support you’ll receive. If these don’t align with your preestablished goals, move on and continue looking for the right fit.
5. The Product
To achieve your financial goals and succeed as a franchise owner, it’s always best to find a product or service that you truly believe in. Before you invest, experience the offering for yourself. Evaluate its benefits and decide whether owning that business is right for you.
Start by seeking out opportunities that align with your interests. If you’re into fitness, for instance, look for a franchise in the health and wellness industry. If you’re into cooking, search for an opportunity in the culinary world. There is a vast amount of franchise possibilities out there. It’s up to you to find the best one for your future.
Interested in learning more about the franchise business model and how to choose the right one for your future? Click below to view our free webinar Defining Essential Support For Franchise Owners!