BY JOEL LIBAVA | January 25, 2013
Before you start searching for that perfect franchise to buy, there are
(at least) three questions you need to get answers to.
That way, when you do find some great franchises to explore, you’ll be ready to move forward if one of them turns out to be The One.
Here they are…
1. Is this the right time for you to become a franchise business owner?
You need to really, really, be honest with yourself, here. This is when you need to be rational-and take your emotions out of the picture.
Either it is the right time to embark on franchise business ownership or it isn’t.
If you’re 22 years-old, just graduated college, and have $5,000 saved up for a business, as much as you’d like it to be the right time to become an owner, it’s probably not. Unless…
Uncle Frank wants to help fund your dream.
Now, what if you’re a recently downsized 49 year-old middle manager?
See #2.
2. How much money should you invest?
You must know exactly where you stand financially before you begin your search for a franchise. Otherwise, you’re just guessing.
Now, you’re welcome to experiment here…you can reverse-engineer what I’m suggesting. But, be forewarned; if you fall in love with particular franchise that you can’t afford, you’re going to be extremely bummed out.
If you do decide to do what I’m gently suggesting here, start off by figuring out your net worth. Add up all of your assets, and all of your liabilities. The difference between the two figures…that’s your net worth.
Once you have that figure, you need to decide how much you’re willing to invest. And, when I say invest, I’m referring to your own money. In other words, how much are you willing to write a check for-before going to a bank for a small business loan?
You’ll be way ahead of the game if you know exactly what you have to work with, and how much of your own money you’re willing to part with if you find a franchise that you’d like to own.
3. Do you have family support?
I’m constantly amazed by the amount of people that contact me about my franchise advisory services who haven’t had a heart to heart talk with their spouses or significant others, etc.
This “talk” isn’t something to put off until you find the franchise business opportunity of your dreams. The people closest to you-the ones that live in your house, need to hear about your idea. And, while it’s true that they may call you “crazy” (or worse), you still need to share your plan of looking at franchises-and possibly even buying one, with them.
You’re going to need their support.
Maybe they’ll need some convincing. If so, encourage them to go online and learn about franchising. Information is power; give them some space to learn all they can about the franchise business model.
If you’re going to become the owner of a franchise, you’re going to want to have your family’s support.
If you do the things I just suggested, you’ll be better prepared than most.
And maybe…just maybe, you’ll find that perfect franchise.
(The Franchise King®, Joel Libava, has been providing vital insights, tips and information for potential franchise owners since 2001. If you’re thinking about buying a franchise, check out Joel’s guaranteed franchise ownership advisory services. And, follow @FranchiseKing on Twitter. You never know what he’s going to Tweet.)
