Are you being pushed, pulled and prodded into starting a franchise? Is your family trying to convince you that now is the time to finally turn your dreams of franchise ownership into a reality? If so, stop.
That might sound like odd advice coming from a business that helps pair franchisees with franchisors, but it’s sage advice.
Starting a franchise is a big decision. It’s not one that should be made because of extreme pressure being handed to you by those around you. Instead, it’s one that should be made with careful consideration. Here are some of the most important things to think about before you start a franchise.
#1. The Hours You Can Reasonably Put In
Starting a franchise is hard work. Sure, there is a lot that the franchisor has already done for you, but there’s also a lot of responsibility that will suddenly be placed on your shoulders. You will be in charge of finding a location, setting up shop and marketing your business. Headquarters can only do so much to get you started. You’ll be tasked with making sure your community knows you’ve opened your doors and with driving foot traffic to your business.
If you have a lot of hours you can work (and expect to work) this is the fun part. It’s the part where you get to truly build a business. If you’re strapped for time or juggling a lot of balls at once, you might not be in the best position to start your franchise now.
#2. The Financials
It’s easy to underestimate the cost of opening a franchise when you see the dollar sign attached to the franchise name. Remember, this is only part of the amount of money you’ll need.
There are many financial must dos that you must go through before opening your franchise. Get familiar on these so you know if franchise ownership is in the cards for you right now, or if you should continue to save up in preparation.
#3. The Business Plan
Most new franchise owners need to get a small business loan to start their franchise. To get this, you must have a business plan in hand before going to the bank. Your business plan is not provided to you by your franchisor. Instead, you must create one.
If you’re not sure where to start, creating your business plan can feel daunting. It can also be time consuming, which can delay you getting started. If you have the time, then you might be in a good position to start your franchise. If not, don’t give into the pressure and instead work on your business plan as much as possible in the meantime. Then, when you do feel ready to start, you have it in place.
Are You Ready?
Before you start the selection process for your next franchise, determine if you’re ready time-wise, financially and with a business plan. If not, you could do yourself and your family more harm than good by rushing into starting a franchise.
