Deciding to make the switch from working for someone else to working for yourself can be a scary process.
At the same time, it is an incredibly exciting move that can give you greater control over your own destiny and provide for your family for years to come.
However, before you start contacting franchise brands and certainly before signing a franchise agreement, it’s important to ask yourself a few questions and make sure that business ownership is the right move for you.
1. Are You Prepared Financially for Owning a Franchise Business?
Starting your own business is a big change in your financial circumstances. Investing in a franchise can require hundreds of thousands of dollars in capital. Planning ahead and having a strict budget in mind is critical. It’s also smart to research the start-up and ongoing costs of franchises before moving forward in the process.
In addition to the initial investment, the franchisor will likely have a specific net worth and potentially a credit score needed to be able to apply. These factors will also come into play when you’re seeking out funding sources if you don’t personally have the necessary capital to invest in a franchise.
2. What Lifestyle Do You Want as a Business Owner?
Your lifestyle is also going to change as you become a business owner. Instead of working in a nine-to-five position, business ownership can require different levels of investment of your time and energy.
Some concepts require long hours, working on the weekends and late nights when you’re first getting started. But as time passes, you’re able to build a solid management team and staff that enables you to take a step back from day-to-day operations and focus on business growth.
However, there are other models that consistently require you to invest long hours as an owner-operator. And still, others allow for a semi-absentee model, in which you delegate most of the operations to layers of management who take care of the business while you primarily oversee your managers and keep track of financial performance.
When you’re investigating franchise opportunities, be sure to find a concept that fits the lifestyle that you want to live but also yields strong unit-level economics based on that operational model.
3. Are you Committed to Becoming a Business Owner?
Becoming a franchise business owner can be hard work, and in order to succeed, you should be mentally prepared. Consider these questions:
- Are you ready for the challenges of running a business?
- Do you have a good support system from other franchisees and the corporate team?
- How will you handle things when business is slow?
- Are you prepared to be a leader and delegate tasks out to others?
The reality is that the responsibility stops with you as a business owner. You have to be up to the task of making decisions that will affect your own financial success, as well as the well-being of your employees.
4. Are you Passionate about the Brand and Model Concept?
Once you’ve decided to jump headfirst into the world of business ownership, it’s important to do your due diligence and research to find the right opportunity based on your personal and business values. Look for brands that uphold principles that resonate with you or bring a service to the community that you know is desperately needed.
Being passionate about your brand and business can bring a quality that you can’t buy – it’s what can make or break your success as a member of the community. When the community sees how passionate you are about the services or products you provide them, they’ll want to do business with you.
More importantly, it’s the passion for your business that will help get you through challenging times. It’s that belief in your purpose that will keep you motivated to succeed.
What You Can Expect with Winmark
Ultimately, these questions can help potential franchisees figure out if business ownership is right for them. There are many variables to consider; the timing may not be right for a lifestyle or financial change. We are always happy to help answer these questions or ask additional ones so you can confidently decide if franchise ownership is right for you.
We are the proud leader of five resale retail franchise brands that are family-friendly, value-oriented and focused on community service. Our brands have been at the forefront of sustainability by doing our part by building a franchise model around the idea of reducing the amount of waste by giving consumers the chance to buy and sell gently used items.
Learn more about any of our franchise brands by downloading a free franchise report here.