Getting into business for yourself can seem a little scary. There are so many unknowns, especially as a first-timer. While joining a franchise gives you a little more support, you still need to find the right franchise opportunity for you in order to be successful.
Here are 8 smart tips for finding the best franchise opportunities:
1. Know Exactly What You Want
Before you do anything else, you need to know exactly what you are looking for. First of all, not everyone is cut out for the franchise business. If you prefer to create a unique product and don’t like being told what to do, then you are probably better off starting a business from scratch.
You should also take time to have a real heart to heart with yourself about what your passions and values are? Do you love food? Is there a certain type of product you want to sell? Is it important that the franchisor share certain of the same values like placing important on community involvement and service to others? Figuring all this out early will help you narrow down your list of potential franchisors a lot quicker.
2. Know Exactly How Much Money You Can Invest
One of the big reasons a new franchisee is not able to survive their first year in business is due to biting off more than they can chew financially. You must go into that first year understanding that it is going to take a while for you to earn money so you need to have enough money saved up not only for the initial launch, but also to run the business for at least 6 months.
3. Is There a Sustainable Market for the Franchisor’s Products and Services?
As you are doing your research on different franchisors, you also need to make sure there is a sustainable market for their products and services. If there are already a lot of shops selling what you are going to be selling and in the same territory, there may not be enough customers to go around. To find this out, use a combination of google searches and talking to franchisees of the franchisors you are interested in. They can especially give you a more realistic portrayal of what to expect. Also, get a good feel for who your competition will be when looking at different franchise opportunities.
4. Assess If You Have the Right Skills for the Job
The great thing about joining a franchise is they offer plenty of training and support to their franchisees so you don’t need to be a seasoned pro to be successful, but you do need certain skillsets. They might vary a little depending on what type of franchise you are interested in, but you should have general skills like strong leadership and organization skills, good with money etc.
5. Find Out What Rules and Regulations You Will Have to Follow
Every franchise program has its own set of rules and regulations that you will be expected to follow concerning how you run your business so it is best to know all that stuff upfront just in case there are certain policies you disagree with. You don’t want to have problems a few months down the line when you are expected to follow policies that don’t sit right with you or you think might affect the success of your business in a negative way.
6. Investigate their Technology Savvy
Other key qualities you should be looking for in a franchisor are forward-thinking and technology savvy. Technology rules the world today and you don’t want to be left behind. Look for prospective franchisors that have a strong research and development department and are constantly looking for ways to use technological advancements to improve not only their products and services but how they do business too. For instance, what type of technology do they use to run the store more efficiently?
7. Get a Legal Advisor on Your Side
There are a lot of documents and contracts that you will need to sign in order to enter into a relationship with a franchisor and to get your new business launched so unless you have a legal degree, it will be a smart idea to have a legal advisor to go over all the contracts for you with a fine comb. They will know what to look for to protect your interests and you will be able to move ahead feeling more confident.
You should also have your attorney review the franchisor’s Financial Disclosure Document which details all the important financial information like any bankruptcies, lawsuits and any hidden costs that may affect you.
8. Be Prepared to Work Hard
The best piece of advice no matter what type of franchise opportunities you are ultimately interested in is to be prepared to work hard. All new businesses require a 24/7 commitment and if you are not willing and able to devote yourself to it, it is best not to make the commitment.
For information about franchise opportunities with Chaps Pit Beef, click here or call us at 410-824-1112.