Buying a franchise is an exciting step in an entrepreneur’s business career. For some, it’s the first step in owning a business, and for veteran entrepreneurs, it’s one of many.
No matter the experience level, before you leap, it’s important to know what lies ahead. Franchising offers nice benefits like brand recognition and robust parent company support, but it does come with its own set of challenges that need to be accounted for, and buyers need to be prepared.
So, as you think about owning a franchise, ask yourself these four questions and find out, “am I ready to own a franchise?”
Hot Links in this Article:
- What is My Mindset?
- What Do My Finances Look Like?
- Do I Have the Work Ethic?
- What Franchise Should I Buy?
What is My Mindset?
A good starting question to ask yourself is, “Do I have the right mindset to run a franchise?” The goal is not to talk yourself out of your dream, but to encourage you to look within and evaluate whether or not you’re ready. Be honest with yourself and gauge your readiness. Do you have the right focus or attitude? Are you customer-focused? How would you handle the risks of running a franchise?
All of the answers to your self-evaluation will not only give you the answer you need but also play a vital part in your success as a business owner.
What Do My Finances Look Like?
When a company decides if they want to take you on as a franchisee, among the many non-financial qualities, they must also be sure you can afford to start and grow the business. So they will want to be sure you have accounted for the full cost to get into business. Franchise investments vary, and whatever the amount, make sure to have a little extra saved. Because it’s not just the franchise fee you have to worry about, it’s also things like supplies, marketing, lease, equipment, employees (working capital), and also the inherent new franchise struggles. If you don’t have the funds or hadn’t considered all of the costs that come with being an owner, you should.
Do I Have the Work Ethic?
Running a franchise is hard work and requires a lot of dedication. Those with a strong work ethic and a skill for leading others are strong candidates to grow a healthy business.
As a business owner, you wear a lot of different hats, including big-picture visionary and day-to-day operations manager. This often leads to you being the first one to show up and the last one to leave. So, if you have a history of putting off what needs to get done or prefer spending your evenings relaxing in front of the TV, you may want to revise your dream.
What Franchise Should I Buy?
If you’re asking yourself if you’re ready to own a franchise, you must have a franchise in mind to buy. It’s wise to do a lot of research before settling on a franchise. Consider things like product and the location as well as if you’re familiar with what they offer and how they do things. Do you fit in with their culture? Do you hold the same beliefs? Are you willing to learn their system and ways of running a business? Ask the questions that ensure a longtime happy partnership.
Being ready to own a franchise is a struggle that many aspiring business owners have. Take the fear out of franchising with Blackmore Franchise Consulting. If you’re interested in owning a franchise or better understanding its challenges, use my services to find the best opportunity for you!
Here are some helpful links to get you started: