Opening a business or buying into a franchise is a big step and a massive investment for any business owner. Before the process even begins you should take the time to make sure that you’re a good fit for opening a franchise. Here are some of the most important considerations and tips to do when starting up a new endeavor:
1: You should try to live as frugally as possible – there’s nothing like financing your own business and boot-strapping it to success. There are bragging rights to be had when someone launches a franchise on their own dime
2: Set yourself up for success by working with a franchise or business model that you’re familiar with. If you know food, stay in the food industry. If you know sports equipment then go with that. Passion and comfort make for greater odds of success.
3: Consider the benefits of starting a moonlight business that doesn’t immediately require you to give up your day job. Can you buy into a franchise that is able to operate on odd hours or off days?
4: A family business might seem like a good idea, but it’s a bigger investment. What’s better for you – building a business from scratch or buying into a franchise opportunity?
5: Choosing a franchise should include market research – understand your competition in the area and how your skills stack up. Likewise try to identify the weaknesses of the competitors around you so you can leverage those within your own business to stand out among your customers.
6: Take the time to make “pro” and “con” lists in regards to opening a franchise. If you’re for it, then make an additional list for each franchise opportunity that stands out to you. Use this lists to weigh them against one another and choose the better franchise fit.
7: If you know people that are in a similar vertical or industry, take the time to include them in your research to ensure that this is the ideal opportunity. You may find that the current economic downturn isn’t favoring the franchise you’re interested in
8: Instead of dropping an idea because the local market doesn’t favor it, consider the potential of a franchise in another area that is within you region. You might find an adjacent town is a better fit for the franchise you have in mind.
9: Look deeply into the agreements for each franchise opportunity and what is offered. Take into account the training that is required, marketing materials, building requirements, etc. Most will give an estimate on the average startup cost but there may be additional costs for opening the franchise in your area.
10: With any business you should have an exit strategy. Plan ahead of time if you can how long you’ll be operating your business, if you will sell it, return the franchise to the corporation, pass it on to investors, etc.
These are all ideas that can help you make a sound decision when you’re looking over investment and franchise opportunities. Careful research will help you make the best choice to ensure greater success with your new business.