Before you begin your search for a franchise to invest in, first consider these 5 important questions says Paul Haarman.
The research you conduct now can help you find a franchise that will meet all of your needs and desires – and save you time and money down the road.
The decision to purchase a franchise is an exciting one, but it’s also a major investment.
Start off on the right foot by asking yourself these 5 questions:
1. Where do I want to go?
Doing market research before starting your search is an excellent way to make sure that your business won’t be running at a loss before it even gets off the ground – and market research isn’t just for finding out how much money people make! To find out whether or not starting a franchise is right for you, try searching for the competition.
Check out other businesses in the area that already offer what you want to provide. If possible, visit these locations at different times of the day to get an accurate picture of demand.
What are your competitors’ strengths and weaknesses? What sets them apart from one another? How much interaction do they have with their customers?
Your research may help you identify niches within certain markets – dead ends where there aren’t enough customers to warrant continued investment.
By identifying potential problems early on, you can choose a business venture that’s more likely to be financially successful from its launch.
2. Is this my passion?
By their nature, most franchises need to be run part-time in addition to having a full-time job.
Before you start looking for franchise opportunities, make sure that you’re ready to give up some of your free time, or else end up burned out before your business ever gets off the ground explains Paul Haarman.
If possible, test out the waters by working for an established business before investing in one of your own.
You may find that you enjoy this kind of work more than anticipated, or discover that it isn’t quite what you expected.
3. Do I have the right skills?
Many franchises require specialized training to get started – and depending on how much time you put into preparing yourself beforehand, that initial investment can either be miniscule or monstrously large.
Before you get into bed with a franchise, understand exactly what they’re offering and how much it’s going to cost you to follow through on their vision.
Do you need any special equipment? Do they provide training programs or will it be up to you to get the right skills?
Remember that franchises offer many of the same advantages of running your own business while also providing some major benefits – but still have their disadvantages! Make sure that before investing in a franchise, you know what you’re getting yourself into.
4. Who am I partnering with?
Having one primary point of contact is one of the biggest advantages that working with a franchise has over owning your own business. If something goes wrong, you can always go to the governing company for assistance says Paul Haarman.
Some franchises also sell “turn key” businesses, where their staff does everything from managing the books to designing the logo.
Depending on how much work you actually want to do yourself, this can mean either more or less controls over your new business venture than if you were running it alone.
5. Have I done my homework?
Many of life’s failures are people who did not realize how close they were to success when they gave up. ~Thomas A Edison
Once you’ve started looking at franchises, research as many as possible before making your final decision – but don’t compare apples and oranges! Every franchise is different – it’s like buying a car; make sure that whatever you end up with is the right vehicle for you.
Look at all of the information that they’ve provided and ask you:
Do I like what they’re offering? Does it sound like something that I can see myself working on in 10 years time? Will I be proud to tell people about my franchise when they ask me what I do for a living? Remember, there are no guarantees in life – but doing your homework upfront will help ensure that you make an educated choice before taking this big step towards building up your own business!
Franchising isn’t for everyone. If you love your ideas so much that you can see them turning into a profitable business venture in the future, then it may be worth looking into this type of opportunity explains Paul Haarman.
However, before making any final decisions, consider your alternatives and keep an open mind about all of your choices! There are endless opportunities to explore when it comes to running your own business – whether it’s starting up from scratch or learning about something new by working for someone else.