Franchise Business: 6 Factors You Must Consider Before Choosing
Yay! You've decided that you would just love to own a franchise business. You're as excited as a 10-year-old at Disneyworld every time you think about it. Great! But exactly what type of franchise are you most suited for? How do you decide which one is your best match? Where to start...
There are several decisions that you need to make for yourself when you begin the road to choosing the best franchise. As a franchise consultant, I often am told by a candidate that they want more information about a specific business without first considering the important elements of the opportunity. And I don't necessarily mean whether you'd rather be selling Big Macs or washing German Shepherds. The product or service you offer should be secondary to the type of lifestyle your business will allow you and your specific role as a franchisee.
Here are 6 key elements you need to be clear about before deciding on the best choice for you.
1. Will my business meet or exceed my financial goals? You need to define ahead of time the necessary income that your franchise must generate. Once you do this, it is very important that you ask this question of current franchisees during your due diligence process. Also, some franchisors provide an earnings claim in their UFOC (Uniform Franchise Offering Circular), listed as Item 19.
2. What are the operating hours of my business? Is it family friendly? Does it allow for plenty of time with your spouse and kids, or are you single and a workaholic? Will you have the free time you need to go to the gym or play tennis with your friends? Or are you happiest when you are working and are fine with working nights and on weekends if necessary?
3. What about employees? Are you the type of person that is very "hands on" and prefers to do it all, or are you comfortable with a competent manager running the business when you're not there? Do you prefer a limited amount of mature, experienced employees, or are you okay with teenagers running your franchise on a Saturday night?
4. Do you enjoy selling? How will you obtain customers? Are you an ace salesperson who loves to pound the pavement and the thrill of a challenge? Do you get excited at the prospect of giving a sales presentation at an upscale hotel in front of 300 executive buyers? Or do prefer a retail setting where customers find you? Maybe you like the idea of the franchisor handling the bulk of the advertising and marketing for you.
5. Tried and true product/service or cutting edge? Do you prefer a product or service that has been successful for decades or are you excited about the newest trend?
6. Office setting or mobile service? Are you happiest behind a desk in your office with your computer preparing budgets or would you enjoy making presentations to homeowners looking to invest in home improvements? Or maybe you would derive satisfaction and pleasure by helping stranded motorists in a roadside assistance business.
As you can clearly see, there is so much more that is involved in your franchise decision than simply what product or service you'll be representing. The above questions are just a sampling of questions you need consider when deciding which franchise concept is most aligned with your values. As an experienced franchise consultant, I can help you identify those values that are most important to you by diving even deeper into these important considerations. Armed with this information, I will then show you only those franchise opportunities that meet your specific requirements.
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