You have made the decision to explore franchising opportunities, and maybe even have some idea of what kind of franchise you would like to operate. Maybe you are ready to own your own business after climbing the corporate ladder – and you now want to control your own destiny, or maybe you are an entrepreneur who values the simplicity that franchising can provide. Regardless of the reasons you are weighing your franchise options, it’s useful to do a deep dive on your goals and expectations as well as your interests and skills and financial capabilities.
Income
Income is obviously important – you want your business to be profitable. Consider first, though, how much income you need and the timeline of those income needs. For example, do you have the financial runway to pay your bills for the first 12-18 months of your start up? Are you content to build your income slowly if it may mean a higher quality of life? Are you ultimately seeking a simple business that you can generate $75K or an empire where you have an income stream in the mid six figures and an asset that you can sell for a multiple of that income stream?
Financial Situation
Your current financial situation will determine how much of an initial investment you can commit to your franchise. For some, up-front financing is not a problem. For others, finding adequate seed money may require using their 401K’s (which can be done tax free). Different franchises require different levels of net worth to qualify for ownership. It’s important to find a franchise that is well within your capabilities to ensure you won’t end up undercapitalized – one of the largest reasons for business failure. Please refer to my article on Funding your Franchise for more detailed information on the most common funding solutions..
Interests
It is so much more pleasurable to be completely engaged and invested in something you like to do. Additionally, when you are engaged and passionate, you are much more likely to be successful. It may be tempting to gravitate toward what seems like a “sure thing,” but make sure the franchise you choose is one which reflects your interests. Passion and commitment are two “must haves” to be a successful business owner.
Strengths
When it comes to your strengths (and interests, for that matter), assessing your professional and personal styles is imperative. If you excel at organization, process improvement, and data analysis, for example, you will want to choose a franchise operation model that calls for those skills – and one in which you can hire for the sales role. If you would rather be pounding the pavement, making professional contacts and focusing on business development – you will look for business models that can capitalize on those strengths – and compensate for any weaknesses.
Are you wanting to find the best franchising fit for you? Your Franchise is Waiting can help. Contact them at jane@yourfranchiseiswaiting.com or (303) 449-1050. You can also take this innovative, free match-making assessment here, which will help to identify your values and competencies, as well as types of franchise systems that would be good cultural fits.