Starting A Business – Think First, Act Second (Part 3)Posted: March 27, 2013 | |
If you’re thinking of purchasing a franchise, your process is going to differ greatly from those thinking of starting a business or purchasing an existing one. Franchise ownership brings with it a unique set of challenges, risks, and benefits that some do not completely grasp.
The first and most important question I ask anyone investing in a franchise is “have you done your homework?” The number of franchises available is endless, and what most don’t realize is a franchise is more than just your typical fast food restaurant or retail store. It is important to move past the bricks and mortar concept of a franchise and see the franchise world in its entirety. For example the professional services franchises industry, which handles white-collar jobs, like career coaching and banking services, is surging ahead of the typical retail franchises. Spurred by middle-management and upper-management individuals with expertise in a field, they are looking for some type of business opportunity and this type of franchise is an opportunity for individual professionals to be part of a larger brandwith access to many resources.
Choose your industry and do your research! As I said last week, knowledge is power. Every franchisor has different regulations and policies and as such, they cannot all be treated the same. You must dive into the nitty gritty details of each franchisor and decide which businesses truly meet your criteria. Make sure that your goals and values align with those of your franchisor.
Once you have narrowed down your options, determine if they are financially feasible. Franchises require an up front investment, so it is imperative, as is with any business, to ensure you have the capital necessary from the beginning. On the plus side, franchises are a known, fixed investment unlike start-ups or existing businesses where there can be daunting hidden costs.
Once you have purchased a franchise, enjoy the benefits! If you partnered with the right franchisor, you will receive ongoing support from the franchisor in terms of training, resources, marketing, and much more! With an established brand, your selling power is increased, your ramp up period is shorter, and your likelihood of success is greater.
Ultimately, you must find the franchisor that best suits your needs and ensure that your short and long term goals are consistent. If you can find your match, a franchise partnership may be right for you!