Where Should You Start?
When you are looking for the right business to own, you need to learn about yourself, your needs and goals. Once you’ve discovered this information about yourself, learn as much about franchise industries and the various types of businesses you can buy. When you have an understanding of how the franchise industry works, you can begin looking for your business. Armed with this information you should be able to find a business that you’re most suited to own.
Doing research online at reputable sites will allow you to learn about the basics of franchising, the different business models, what it takes to get started, and the associated franchise costs you will have to consider.
Questions you need to ask yourself before searching for a business…
Learning about yourself and your needs and goals takes serious thought. Here are some questions to get you started:
Why am I exploring the option of owning my own business?
What am I seeking in a business?
How much can I afford to invest at this time?
When you start looking at specific opportunities, here are the specifics you should ask yourself:
Would I enjoy performing the activities and services conducted by COMPANY X franchisees on a daily basis?
Is the income earning potential in the range I am seeking?
What aspects of this business do I like? What aspects do I not like?
Would this business not only give me the income I seek, but also the flexibility to enjoy the non-business components of my life?
Would I have fun building COMPANY X’s franchise?
It is also highly recommend that prospective franchisees contact franchise owners from the company(s) they are interested in. It’s very important to speak with franchisees who have achieved success and experienced ownership with the companies you are interested in. Ask them all the questions you need answers to in order to feel confident this is, or is not, the opportunity for you.
Conducting Your Research
The Internet has become an integral part of most American’s lives. We visit the Internet for information, breaking news, and to make purchases, big and small. Whether you have a good understanding of yourself and what you want in a business or you want to learn the basics about franchising, a great place to start your search is on the web. There are many websites dedicated to matching prospective franchisees with business and franchise opportunities. Websites, such as FranchiseSolutions.com, offer easy to use search tools, as well as educational resources such as original articles and the latest industry news.
Matt Alden, General Manager of Franchise Solutions explained, “More and more over the past several years people begin the process of evaluating high-ticket, emotionally driven purchase decisions on the Internet. This is true of homes and cars, and franchises are really no different. We all love the anonymity associated with window shopping and, at the beginning of searching for a franchise online, this is what prospective buyers are able to do at websites like ours.”
Using a consultant is also a very viable way of finding the information you need to vet the franchises that you are interested in. Consultants will walk you through the process more than if you use a website to do your own research. Much like a real-estate agent, consultants will cull the choices down for you and present you with opportunities that match your needs until you find a franchise that fits the bill.
Whether you use a website or engage a consultant, at some point you can be quickly engaged by franchisors via phone, email or both. It’s important to understand that franchisors receive hundreds of inquiries and, beyond some initial communication to acknowledge your inquiry, they’ll focus their time and energy on those prospects that are willing to participate in an information exchange by which both parties get better acquainted and determine if there is a fit. So, get educated about franchising, be thoughtful about which franchise companies you inquire to, and be prepared to communicate frequently and effectively with those companies.
Mistakes To Avoid
Making a mistake when you research or buy a business can be a costly, life changing event. A mistake can set your career back, become the source of many headaches, or even cause bankruptcy. So how do you avoid mistakes? First, you should never assume right away that a franchisor is trying to sell you a business. Most reputable franchisors will engage in a mutual discovery process, assessing whether or not you’re an appropriate match for their company. Also, during the initial discovery stage, do not assume that a franchisor is strictly interested in how much money you have available to invest. A quality franchisor looks for a candidate that has the skills necessary to propel a franchise location to success.
Do not assume all franchise opportunities are legitimate! There are plenty of franchise and business opportunities available that may look profitable and genuine, with glossy information packages and a concept that seems to make sense. All opportunities are not safe places to invest your time and money. Do plenty of homework before you sign any contracts.
Keep your initial goals and dream in mind throughout the search process. Remind yourself of your dreams on a regular basis, and don’t rush into anything. Again, you have to do plenty of homework: Visit the home office, call current and past franchisees, and investigate sources of financing. Finally, remember that until you sign a franchise agreement, you have not made a commitment to anyone. Do plenty of due diligence, and make sure the business you buy is the business of your dreams.