 |
|
Statistically, buying a franchise is one of the safest ways to own a business but only if you choose the right one. The following 6 key steps will help you choose the best franchise and prepare you to become a successful franchise owner.
- – Take the time to evaluate your skills, interests, and financial situation. Before you select a franchise you should take an inventory of yourself. Ask yourself questions like ‘what is it that appeals to you about owning a retail franchise?’ Understanding and knowing your financial situation may save you time and money by narrowing down your options and eliminating franchises that are out of your investment range.
- – No matter what franchise company you investigate and research, they have certain characteristics that make up the business model. These would include the type of location, is it an owner or manager run business, what are the hours of operation, what is the flexibility factor for the owner, is the franchise a good multi-unit operation, how many employees do I need, what type of employees do I need to hire, and is the business more of a service or product franchise. Knowing some of these characteristics of a business model helps you to formulate your own personal business model before even looking at franchise opportunities. It’s like buying a house and saying the house has to have at least these 3 things before I would even consider taking the time to look at the house. Save yourself a bunch of time upfront and avoid getting frustrated, and put together a short list of must-haves in your search for a franchise that is going to help you accomplish your family, lifestyle, and financial goals.
- - Every franchise in the United States is required to provide a UFOC (Uniform Franchise Offering Circular). As of July 1st, 2008, the UFOC will have a new official name – Franchise Disclosure Document (FDD). Read it thoroughly. You’ll learn the franchisor’s history, training and marketing programs. You will learn the total cost of the franchise, royalties and other fees you’ll have to pay. Some franchisors also include earnings claims in the UFOC/FDD. This information will help you estimate your business potential. You will find this information in Item 19 of the document. The UFOC/FDD should clearly explain the responsibilities of the franchisee (you) and the franchisor. Reviewing and understanding it is a very significant part of your research.
- - Getting feedback from existing franchisees is one of the most important steps you can take in evaluating the success and performance of the franchise system. They are your best source of information about what really happens in the business day-to-day and getting a feel for what’s involved in running the operations of the business. Ask what they like and dislike about the business, but keep in mind every business has its challenges. The key question is can you handle the challenges of that particular business. Be sure to cover the training and support programs offered from the corporate headquarters. If you can, try to get a better picture of the financial and earnings potential of the franchise. Break it down into year 1, 2, and 3. This should help in realizing the growth potential of the business. Gathering a variety of opinions will give you a chance to formulate your own, knowing that the ultimate question is ‘will I fit into this franchise system and can I be successful franchise owner.’
You can also look for third party franchise review companies and articles as an additional source of information. Use these franchisee satisfaction reports and articles to get an overall sense of the franchisor’s satisfaction rate.
-
- The number one reason the majority of people don’t pursue their dream of business
ownership is FEAR. Some people refer to fear not as a word, but an acronym. F.E.A.R to them means False Evidence Appearing Real. The
acronym message is deciding what is real and what is false as the emotion of fear will make you believe what is not really true.
Buying a franchise is one of the biggest decisions you will ever make. It would be unusual for you to not have moments
of total fear as you get closer to making this big decision. What you have to overcome is letting fear stop you from
making the decision you really want to make.
Here are a few tips in overcoming fear:
- In most cases, people have accumulated enough information to make a decision. It is really a matter of better organizing the information and putting it into an order of importance and priorities.
- The more information you gather, the more details you get. Don’t get bogged down in the little things. Get back to the big picture.
- Revisit your initial goals and dreams of owning a business, and let those thoughts punch out your fear factor.
- Build and surround your self with people that believe in you. Have these people cheering for you every step in the process.
If you have done your homework and found the retail or food franchise that you are excited about owning, but can't seem to commit to a making a decision, remember the doubts you are experiencing are more likely about your own abilities rather than the franchise itself.
- - Making the decision to move forward with a franchise is like diving off the high board. Sure, from a distance, diving off that high board doesn’t look to difficult. But, now that you are on the high board, it sure looks a lot different. It is the same when you have to make a business decision.
So, you have completed your investigation and have all the information you need to make a decision. The choice is either to say 'yes' to this franchise is right for me’ or ‘no its not.’ In either case, it is time to make a decision. If this franchise has everything you are looking for in a business, do it. If it doesn't, eliminate it. If you still have a desire to own a franchise, then go to the next one.
|
|