Steps to Opening a Franchise: Do You Have What it Takes?

Starting a franchise business is not easy. It involves extensive research to decide which business is right for you, then in-depth planning before going live. Though the beginning stages can be rough, the rewards for perseverance are well worth it. And in our current economy, these rewards may just materialize sooner than expected.

There are two major steps that need to be taken before opening a franchise:

Evaluations

Before you decide which franchise business to choose, you need to evaluate several different areas, such as:

Personal: What is your education and professional background? What types of experiences do you think would be applicable to your new business? How would you rate your risk tolerance? Are you willing to take big risks for potentially large payoffs, or do you prefer to play it safe? Are you a “big picture” person, or are you more detail-oriented?

Family: Your family life will play a major role in the success of your business. For example, if you are single, you likely have more free time to devote to a franchise venture. On the other hand, if you have a spouse and family, you need to make sure they’re on board and buy into the vision. Otherwise, you could be in for a bumpy ride.

Business Preference: Do you prefer an established and structured business model, or do you like to go it alone? Are you willing to invest in a business plan that can accelerate your success, or would you prefer to blaze your own trail through trial and error? Franchising is a great way to start a business, but it’s not for everyone. Some individuals want more flexibility in how they run their business and/or they have less capital to invest. In such cases, starting a business from scratch might be a better option.

Market Analysis: Who will your target market be? What is the level of competition in your local market? Does this business have a good chance of succeeding in the local market?

Franchisor Track Record: Not all franchises are created equal. Some offer more support than others, and some have more successful franchisees. Speak with existing franchisees to find out the pros and cons of each franchise brand you are looking at.

Resources: Do you have the available funds to invest in the franchise you are considering? If not, can you obtain the funding through family, friends, banks, or alternative lending sources?

Due Diligence

These days, there are hundreds of franchise brands to choose from across a wide range of industries. Of course, there are numerous in traditional industries such as food and cleaning services, but there are also up and coming industries such as senior care, where you can start a business for far lower overhead and take advantage of the largest demographic shift in modern history. There are even franchises for sales professionals who want to become entrepreneurs and finally earn what they’re really worth. You can deal with each franchise brand individually, but that would take hours of back and forth with sales reps whose job it is to convince you that theirs is the best franchise opportunity.

Unless you already have your mind set on just one or two franchises or you have plenty of time to deal with numerous franchisor reps, your best bet is to work with a franchise consultant. At National Franchise Business Solutions, we have access to over 600 franchise brands from virtually every industry, and through a multi-step process, we work closely with candidates to match them with the franchisor that best suits their passion, skills, and budget. Our advice is objective, and our consulting is free and unlimited. We have no pre-set agenda, except to help put you on the path to realizing your own entrepreneurial dream.

 

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