Like many people, you’ve probably dreamed about dumping the usual 9-5 routine and becoming your own boss. If so, you can either start a business from scratch or go with a proven winner and buy a franchise. But before you do so and assume the money will start rolling in simply because you are now a franchise owner, here are eight critical decisions you need to make before signing on the dotted line.
Will You Get Sufficient Training?
The premier franchises always give their franchisees excellent training from day one and also offer ongoing training and support. Before you purchase any franchise, read the contract carefully to ensure you can access help when it’s needed.
Consider Your Startup Costs
Make sure you understand the startup costs associated with buying a franchise. These can include royalty fees, real estate costs, and net worth requirements you may need to meet before the purchase.
Does It Fit Your Personality and Interests?
Will you enjoy the day-to-day work that comes with your franchise? Are you a people person who enjoys daily interactions with customers, or would you prefer to be an owner who stays behind the scenes?
Line Up Your Financing Beforehand
Since even the smallest franchise will cost thousands of dollars, know the various financing options you can access. The popular ones often include SBA loans, a traditional loan from your bank, or a business line of credit that can be revolving and let you access it regularly for various expenses.
Consult With Experts
Never be afraid to consult with experts such as lawyers and accountants before you buy a franchise. Not only can they answer questions about financing, contracts, and little-known facts about various types of franchises, but they can also help you connect with other franchisees who are success stories and can give you honest feedback about what being a franchise owner is really like.
Can You Conform?
If you’re an entrepreneur who truly wants to follow the beat of a different drummer, remember that a franchise usually has certain requirements that must be met regarding marketing, dress codes, customer service, and much more.
Do You Have the Time and Energy to Be a Franchise Owner?
Even if you are a behind-the-scenes franchise owner, you’ll still need to have plenty of time and energy to make your business successful. Instead of working a standard 40-hour week, plan on working 50 or 60 hours per week to increase your chances of business success. Should you have family or other personal obligations, take that into consideration.
Pay a Visit to Existing Franchises
Last but not least, visit some existing franchises in your local area to get a real feel of the business. This will help you decide if the franchisor really invests time and money in its franchisees, if employees seem happy, and if things seem well-organized.
If you take your time with these eight important franchise decisions, you’ll have a much better chance of realizing your long-held dream of entrepreneurial success.
Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.
Published by: Khy Talara