5 Tips: Certain things a candidate should look for when searching franchises

by Michelle Wiginton

Many potential business owners struggle with finding the best fit franchise for them. Each opportunity looks exciting, financially-rewarding and almost perfect…but glossy marketing materials are not what make a successful franchisee, finding the right franchise fit for YOU, however, is a great start to your future personal and professional success.

When evaluating your business opportunities sit down and take a realistic look at the franchises you are most serious about. Compare apples to apples, talk to your family about what each option might mean to the current family dynamics and then re-evaluate your choices after you consider how you fit into each franchise system.

Financial Fit: If a franchise is too expensive or will cause you to be budgeted down to your last dime, this is probably not the right option for you. Unexpected costs will always pop up, in your personal and professional lives, and you will need to have a financial cushion to reduce the risk and stress that limited access to funds always adds to any fiscal equation.

Are you able to keep your current job, which provides a steady source of income, or will you have to quit and focus solely on your new venture? Will your spouse work? Who will take care of the kids when you are both working? What about insurance? Does the franchise provide such benefit options to owners or will you need to secure your own? One medical emergency can spell financial disaster to a family who has not prepared for its inevitability.

On the flip-side, if you have prepared a comprehensive business plan, done your homework on what to expect during your first five years and have your friends and family “on board” for your business adventure, you are much more likely to weather the storms and grow through each challenge.

Family Fit: A new business, like a new baby, will take more time than you had ever dreamed and you’ll lose sleep at night because you’re up taking care of it. Employees will call in sick. Floods, tornados and hurricanes will all continue to wreak havoc on communities. Pipes will burst. Technology will fail.

If you know you are going to have to be gone more than you want to be during the evenings, will you be able to carve out more family time on weekends? Are there opportunities for the family to participate in building your business, so they feel a part of your adventure and have a better understanding of why you are gone so much of the time?

If you have a strong foundation of family and friends who can step in and help you at a moment’s notice, your stress level will remain low and your passion level high. Recruit a handful of “back-up babysitters” who can help when you need to work extra hours. Utilize trustworthy family and friends with a more fluid schedule as fill-in employees, who you can call-in from time-to-time last minute. Stay connected to others who will add to your life and your business and limit the energy and effort you spend on those individuals who are negative or who bring more drama to your relationship than it is worth.

Familiarity Fit: Starting a new business should make you feel tingly all over, but it should also feel familiar and comfortable. Stretching your professional-self is a given, but snapping because you simply can’t get it together on any level is not healthy for you or your business.

You should be asking yourself questions like: Is this something I would love to do even if I was not going into business? Are my past experiences and education complimentary to this new professional opportunity? Am I familiar with the industry and where my skills and talents fit into the scope of my business and where I will need mentors and/or outside expert help?

Dining in a restaurant and owning a restaurant are worlds apart, as is loving ice cream and starting an ice cream shop. What are the hours involved? Is the business seasonal or year ‘round? Will you be dealing with the public? Do you love people? Are you naturally a people-person or is it a struggle? All of these things should be considered. You may be taking a new road, but “mode of transportation” on this journey will continue to look like what you see in the mirror each morning.

Focal Fit: Knowing where a franchise is going is as important as where it came from and its current place and position in the industry. Is a franchise in a state of growth and expansion, saturation or decline from the marketplace? Do you feel confident that the corporate leadership is equipped to lead the franchise to even greater success? Are the appropriate resources in place to assist with your individual growth and entry/continuation in your market?

Talk to successful franchisees within the system and ask what they feel was their key(s) to success with the franchise. Was it personal networking and resources? Was it corporate support and assistance? Was it blind luck? Look at franchise owners in similar markets who have a proven track record of success. These are the professionals who know what it takes to be successful within the franchise you are considering and they can give you candid feedback on what it will take for you to find the same outcome.

Remember, newer franchises may still be experiencing growing pains in the form of evolving technology, new management at the corporate level and changes in procedures and policies. This can actually be a plus, since many newer franchises will be more affordable than the more established businesses that have been around for a much longer period of time.

Future Fit: No matter what franchise you decide upon, you should start your business with your end in mind. Is this a life-long journey or are you in for a ten-year run before retirement? Are you kids interested in taking over the business? Is this a transition out of the corporate workplace and into a work-for-yourself scenario?

No matter the reason(s) you want to start your own business, you need to always keep your exit strategy in place because it will help guide your decision-making process. If you are looking at a business to work part-time when you retire in five years, how much will you have to work until then to get it going and to a place that will sustain you? Is your spouse ready and willing to sacrifice for the business, since they will probably take on a greater share of the workload at home? Do your kids understand that they will be sharing you with your new business?

Starting your own business can be the best decision you ever made…or the worst. You need to be honest with yourself and make sure you do your homework before you sign on the dotted line. If you are financially-sound, supported by friends and family, embarking on a business adventure that captures the best of who you are and what you have to offer, not to mention if your passions are aligned with your potential franchise, you have built a strong foundation that will go a long way to support your future professional endeavors.

Michelle Wiginton
Event Coordinator
Just Between FriendS

Learn more about Just Between Friends at topfranchises.franchisebusinessreview.com.

Log in to leave a comment. If you're not an FBR member yet, click here.
Email:
Password:
	Keep me logged in
Comment:

You must register to post a comment. Registration is quick & easy. If you are already an FBR member, click here.
First Name:
Last Name:
Email:
Password:
Confirm Password:
Receive updates, notifications and special offers from Franchise Business Review
Comment:
Verification:	[ New Image ]