5 Tips for Finding the Right Franchise Fit

by Michelle Wiginton

You go into business to make money, that’s a given. We all have to make a living, support our families and carve out a little extra for a vacation when we need a sanity break. One way to do that is to purchase a franchise.

There are many things to consider when purchasing a franchise, but these five areas of consideration are worth a quiet afternoon, with your favorite cup of tea/coffee, and an honest heart-to-heart with yourself. Remember, take the blinking, neon almighty dollar profit sign out of this part of the equation and think about the day-to-day grind. This is what you are actually signing on for. What you must be excited about. What could ultimately make or break your business.

Passion: Would you do this for free? Do you think about it all the time? Is this something you would find a way to do no matter what happens?

When I purchased my three Just Between Friends franchises, I was an average consignment shopper and had grown children. What appealed to me were the processes they use to conduct their business. I am a Certified Meeting Planner and certified in Business Process Re-engineering, with degrees in Advertising and International Human Relations.

I fell in love with the smart, savvy women who had honed and tested each procedure, piece of equipment, computer program and process in place that makes my franchises run like well-oiled machines. Five years later, I still get excited about opening up an event for registration, seeing an empty convention center and then watching it fill up to capacity, and the rush of partnering with my community to help so many local families become successful “mini-mompreneurs” during our events.

I am the “JBF lady” and love being the “nice lady who sends my moms emails that make them smile.” I am always looking for ways to make every aspect of my franchise better and love sharing those ideas with other franchisees, too. Passion cannot be learned, faked or forced. Either you have it or you don’t. If you don’t have passion for your business, you probably haven’t found your best fit.

Price: Not what you are going to make, but what is this going to cost you? Is your family behind you 100% because they will sacrifice for your dreams, too?

Too many aspiring business owners get caught up in the romance and potential of future success that they fail to plan and provide for the here-and-now of what a new business venture will cost them. In essence, they adopt the “living on love” mentality for their business plan and apply that to their families as well.

Just because YOU love what you’re doing does not mean that your spouse or children will share your passion and willingness to sacrifice family time, finances and the security that working a regular job might offer. These are things you need to discuss and agree upon before you ever start a business that will affect your family.

Planning ahead for a reduction in family finances, less family time and increased responsibility will go a long way to support your success because you have planned for the realities of any business, especially a new business. Too, thanking your family for their part in your success and expression your appreciation for their continued support is a critical key to a happy personal and professional life.

Perspiration: Are you prepared to do whatever it takes to make your franchise successful? Have you thought about cleaning bathrooms, working late, up early and foregoing family time?

If you’ve not considered the possibility of YOU doing EVERY aspect of your business, then you are not approaching your business without rose-tinted glasses. The reality is, when you’re the boss, you’re responsible for everything. The clogged up toilet, employees calling in sick, managing your social media presence, employee training/inspiration, managing competition….the list goes on and on.

Knowing these things will come up and that they are all a part of any business will help you deal with the issue at hand and not get discouraged and overwhelmed. Instead, be thankful and balance any negatives with the overwhelming positives. For instance, if an employee calls in sick AGAIN, you could get angry and talk ugly, which will make those around you think you talk the same way about them OR you could say, “Susan has not yet been released by her doctor to return to work, so I have an opportunity for one of you to earn some extra money on your paycheck by working her shift.” Which one makes YOU feel better?

Perspiration is not as much about problems as it is perspective. Look for solutions, listen to suggestions and always be thinking about how you can make everything about your business better. Many times, that opportunity does not present itself until it comes up as a complaint, emergency situation or chronic problem. Make a sign, hang it by your desk, “What are my opportunities today?” They will plentiful if you are looking for them.

Purposeful: Do you have higher goals in mind, beyond yourself? What will your business contribute to the greater good of your community/society?

If you don’t have a warm fuzzy feeling about what you do, then your professional life will never satisfy the intrinsic need within every one of us to make a difference in our personal lives. If you run a restaurant, do you get a wonderful sense of satisfaction when you observe a family enjoying a meal together in your establishment?

Purpose is like passion, it is either part of you and what you’re doing or it’s not. If it’s not, then what you are doing will never be enough because you are not meeting a basic human need. Despite what is portrayed on television, money will never fill any void in your life.

Approaching your professional career in respect to complimenting your personal life is the first step to success in both areas. I enjoy serving others, I was a single mom for eleven years and one of six kids, and I know many creative ways to stretch and save a dollar. Just Between Friends made sense to me on every level and my family believed in the concept and my ability to make my franchises a success. Not to say that I never get a complaint, run into brick walls or make bad decisions, but that given all things considered, I am very confident that where I am is where I am supposed to be. I found a best fit for me and my family.

Recession-Proof: Is your dream business considered a luxury? Is the current market already saturated? Where is your product/service on the lifecycle of your franchise?

Nobody has a crystal ball or time travelling machine, but you need to make sure that any business ADventure is as exciting and full of potential as possible. Part of predicting that recession-proof business potential should be thinking about what stage a franchise is in when you are entering the market:

Introduction: This is a high-risk time because products/services/processes may not be well known, proven and in a state of refinement. On the flip side, being on the ground floor of a great, new business could mean you are at the right place, at the right time. This is not the time for pie-in-the-sky, but an honest assessment of yourself, your proposed business and the market you plan to invest in.
Growth: Probably a lower-risk investment because the name is becoming better known and is gaining market share. However, if the franchise is a great opportunity, it can also be a much more competitive time than when a franchise is first exploding onto the national market. Make sure to do your homework, talk to current franchisees and make sure that your proposed market is well-suited to handle your new business and thrive in your area. NOTE: Ask current franchisees, “What do you think has made you successful with XYZ franchise?” If it is not their product/service/processes, you might want to ask yourself if it is actually something that you can replicate in your market (i.e. specific market, like college students, or specific venue, like waterfront property location)
Maturity: As a franchise experiences success and invests in its own growth and expansion, franchisees will find that the amount of money it takes to start a business goes up exponentially, but the level of risk also goes down because branding and Top of Mind Awareness are already in place. Many franchisees will find that businesses in this stage are available as an established business purchase and not a new start-up. Another key factor to entering the market at this point is where the franchise is going from here…continual growth and adoption by consumers, reduced market share by encroaching competitors or attrition of customers as the product/service becomes obsolete?
Saturation/Decline: At this point in a product/service lifecycle, risk increases because consumers may be swayed by competition to do the same business in an entirely new way. For example, electronic books have completely changed the way bookstores, book printers, book distributers/publishers, libraries, etc. do business. If a company is able to reinvent itself/its products/services, then the franchise may be able to start its lifecycle over.

Michelle Wiginton
Social Relationship Catalyst & Franchise Development Coordinator
Just Between Friends

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

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