Seven Questions to Ask when Starting a Franchise
Buying the rights to a franchise is an exciting and nerve racking process. It isn't everyday that you decide to uproot the life that you currently know and are accustomed to and start your own business. When you are thinking about buying into a franchise business, first ask yourself these questions that will help you make an informed and strategic decision:
1. What do you love doing? - This is the most important question to ask yourself. You need to get involved with a franchise that will allow you to do the things you love or you will not enjoy your new career move. Enjoying yourself means you will work harder and grow your business at a higher rate.
2. How much does the franchise cost? - Make sure you research how much the buy-in is, how much land property will cost, what your overhead will be and all the other franchise fees you will have to pay.
3. How much do you have to invest? - You may see several franchises that you would like to invest in, but if they are way over your available budget to invest, you have to know when to back away. There are plenty of franchises out there and it doesn't make any sense to start out your business by investing more than you'll be able to pay back.
4. What are the profit chances? - Is the business recession resistant? If not, you could end up failing quickly and be out a lot of time and money. Make sure the business has the chance to be profitable.
5. What does the market look like for the franchise? - This question goes along with the profit chances of the business. If you are opening a business in a market that is saturated with or not looking for the service you want to offer, your business will fail.
6. How established is the franchise? - Make sure the franchise has a good system in place to help you along your journey in the franchise industry. Remember, you can be in business for yourself, but not by yourself.
7. Have you done your research? - Check out the history of the franchise and the number of franchises around the country. Call some of the franchisees and talk to them about their experience with the franchise. This is the best first-hand account you'll be able to get, so you need to take advantage.