Owning a franchise has its perks and it’s stress factors. Overcoming the stresses and startup woes, really does have great reward. A franchise is an already established business model that is part of a chain. Each franchise uses the same name, trademark, product and services built off the same model. A franchise owner is one who buys a franchise from the chain to start business growth in a new area to promote growth of the business. Sounds pretty simple to get an already established business running in a new area, but that’s not always the case.
Considering how much a franchise costs before how much the franchise will make is one of the first takeaways for a new business owner. Knowing the total investment needed just to open the franchise doors is vital and should include purchase costs, opening inventory, basic bills ( rent, utilities) and amount of working capitol needed before breaking even. Understanding how much you need to spend before you can make money is crucial so you don’t run out of money before you get started.
Knowing who you are and what you’re good at or passionate about is something to take into consideration before choosing a franchise to work with. You don’t want to buy a franchise that you don’t agree with or doesn’t agree with you in the sense that you and the business model are not compatible. Having a successful franchise depends on how well you work on the business, not just in the business.
Time management is important to consider when starting as a new franchisee. Becoming your own business owner probably came about because you are tired of your 8a-5p in office job. That’s okay. Just understand that you will now be working 8a-9p in office for your business but because it’s yours and you’re passionate about it, doesn’t mean you will dislike it. Again, how well do you plan working on your business.
Do your research on the franchisor. Just because a franchisor is new, won’t mean it’s not a great opportunity, but the more you know about them, the easier your choice will be as to which franchise to choose.
Speak with other franchisees, the successful and the average making locations. Ask them questions on their business adventures and what they feel helped or hurt them so you too can hear what did and did not work in their favor. Apply those to your own model.
One of the best parts of starting a new franchise is that you should have a lot of support from the other franchisees and the franchisor before you. Check out that support. Use it. Make sure it’s the right support for you and how much support was offered to the other new franchisees when the going got tough.
Understanding the why, whom and what you’re getting into a franchise business with is important to determine your probability of success and the best potential for you.