Everywhere you go, you’re bound to pass more than one franchised business – and for good reason.
Franchises offer advantages that start-ups and mom-and-pop businesses can’t provide. United under one trademark, they give franchisees access to proven operational models, group advertising, buying power, brand recognition and much more. However, while there is a multitude of successful franchises out there, buying a franchise doesn’t guarantee your success.
If you’re debating whether to invest in a franchise, there are several important questions you need to ask yourself before you make the decision.
Can I Afford it?
One of the most important questions to ask yourself is whether you have access to the financial resources necessary to invest in a franchise. The investment goes into start-up costs, training for employees, supplies and other expenses. Don’t forget to factor in working capital for keeping your business up and running until it becomes profitable.
Think about how much you’re willing to spend, and take into account different financing options. Financing is a common way that franchisees help pay for their investment, but it’s up to you to pick the funding option that works best for your budget and lifestyle. Remember, it’s always easier to start with more money than you think you need.
Do I Have a Strong Support System?
Running your own business is a full-time job, which means there will have to be sacrifices made to your personal and family time. Having a strong support system means the people around you – friends and family – understand the demands of running your own business and will continue to support you throughout the victories and challenges of business ownership.
Other support systems can come in the form of other franchisees and the franchisor once you’ve signed your franchise agreement. It is helpful to have other franchisees who understand exactly what you may be experiencing and can provide helpful tips and tricks to help you overcome any obstacles.
Am I Okay With Following a Set of Business Guidelines and Requirements?
For some people, being provided with a set number of options for wall colors, equipment requirements and space usage brings a breath of relief. Not having to worry about those aspects of opening up a business can be ideal for those who want to focus on the bigger parts of business ownership, while others may feel restricted in their creative licensing or business ownership style.
Portraying a particular sign and logo indicates to your customers that you adhere to a certain system. For those who don’t enjoy conforming to a predetermined formula – no matter how successful – think carefully about if a franchise business is the right route for you.
Do I Enjoy Interacting with Others?
Being a business owner means interacting with customers, your employees, other franchisees and the franchisor. Creating and maintaining good relationships with everyone around you can be the difference between having a successful business with happy employees and loyal customers and feeling like you’re fighting an uphill battle day in and day out.
If you crave personal relationships and enjoy socializing and connecting with your community, buying into a franchise business could be the perfect option for you. If you’re more on the introverted side, put some serious thought into whether or not you’re willing to consistently interact with others daily. Should that be the case, you’ll need to fill that gap with your management team.
Do I Connect with the Franchise Brand and Leadership?
Picking the right franchise can take time and is one of the first steps to franchise ownership. When looking at different franchise opportunities, be cognizant of whether you align with the brand’s mission and values and if you’d be proud to be representing its products and services.
Also, be sure to look into the leadership team. While you’re the one making the decisions at the local level, the president and chief executive officer and others at the head of the brand will inevitably be making decisions that impact how you operate your business.
Do some research into the executive team and be sure you align with their vision for the company and whether they’re open to receiving feedback from franchisees as it relates to evolving the brand. The franchisor-franchisee relationship is a key component of your happiness and growth as a business owner.
Am I Ready to Take on the Responsibilities of Business Ownership?
Running a franchise doesn’t mean you can put your feet up and relax once you’ve opened your doors for business – you need to be prepared to take on every responsibility involved with business ownership, even if you’re being provided with tools and assistance from the franchisor.
For example, while things like interior design, equipment options, national marketing support and training are included in joining any franchise, it’s essential to recognize that the buck stops with you when it comes to executing your business plan.
You’ll likely face long hours – think 60-70 per week – when you’re first getting started. You have to be willing to do any sort of task, from cleaning up after closing to hiring and firing employees and dealing with upset customers.
Are You Ready to Learn about our Resale Franchise Opportunities?
Once you’ve answered these questions, you can more confidently know whether owning a franchise is the right move for you.
To learn more about any of our five resale franchise opportunities, get started by downloading our free franchise reports today!