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Buying a Franchise | A Small Business Start Up Franchising Primer Guide for Franchise Development Beginners

Written by: Paul Roesch

Article Overview: There are key components involved with buying a franchise and starting a business. The journey begins with a mind set that you will not be buying anything but rather investing in yourself with a concept to help achieve your goals. Investing in your future requires planning and honesty. Begin to think ownership thoughts as soon as possible and act accordingly. Design Build your idea with the end in sight.

Buying a Franchise | A Small Business Start Up Franchising Primer Guide for Franchise Development Beginners

There are key components involved with buying a franchise and starting a business. The journey begins with a mind set that you will not be buying anything but rather investing in yourself with a concept to help achieve your goals. Eliminate the word “buy” and replace it with “invest”. This fundamental step must be your guiding light through your due diligence process.

Investing in your future requires planning and honesty. Begin to think ownership thoughts as soon as possible and act accordingly. Design Build your idea with the end in sight. In other words determine your goals and where you desire to end up and plan to build to that end.

This is not an easy process and will take time. This checklist of activities will help you to stay focused on your target. Do not leave anything out or take any shortcuts.

Assess your strengths and challenges. You need to believe in yourself
Complete a personality profile analysis to affirm your character traits and business ownership suitability
Determine what it is that you really enjoy doing. You will be in business for a long time.
Articulate your enjoyment into a concept
Do you want a job or a business? A Business or a Practice?
Create a feasibility study that includes the strengths, weaknesses, opportunities and threats to your idea.
Research the market for need and competitors.
Determine the size of the market space for your idea
Approach franchisors directly for information
Create a spreadsheet with costs, benefits and value plus or minus
Count your money-prepare a personal financial statement
Order your credit reports and assess for accuracy
Speak with lenders to determine your available line of credit
Collateral pledge to lender - are you ready for this commitment?
Prepare a complete business plan – this will help you narrow down your choices
Select the concept and refine your business plan based upon conversations with franchisees
Prepare for the worst situations not the most optimal
Look for the Exit – in case of need
Continue to assess and listen carefully to the market
Finalize your decision and move to the operational side of the business.

Planning will take a substantial amount of time and effort, but it will be worthwhile.

Copyright© 2008 Paul M. Roesch

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Article Tags: buying a franchise, franchise, franchise development, honesty, investing in your future, journey, small business



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