Do you want to be a business owner or own a business?

by Right at Home

One of the biggest mistakes people make when thinking of franchising as a career option is not properly evaluating the personal commitment it requires to run a small business. Many people fall in love with the idea of becoming their own boss, but are not ready to run a business successfully. Being unhappy with your current career, disliking your boss or wanting to work in a new industry all together are all reasons for wanting to go into business for yourself – but do you really have what it takes?

Even if you consider yourself to be hard-working and trustworthy, the amount of dedication, commitment and time you will be devoting to your business can’t be underestimated. Owning a business is hard work; however, if you are able to really take an in-depth look at your goals, expectations and passions, you will be able to find the right fit for you.

The self-evaluation process is one of the most critical in helping to determine which franchise is the right fit for you. How do you narrow down thousands of different franchise companies in the United States to one? First, you have to understand your passions, know what makes you happy and determine what your strengths are. The next step is to conduct extensive research to find a franchise that incorporates these things.

Eric Little, Right at Home’s VP of franchise development, knows a thing or two about what you should ask yourself when evaluating franchises for the best fit.

Take a look at his perspective below:

Motivations for Business Ownership

What are the reasons you are looking to start a business yourself?

This is one of the most substantial questions you have to ask yourself when thinking of leaving your current career. Whether it be for lifestyle improvements (more control, stability, flexibility or more time for your family), or for financial reasons (your company has been downsized, not enough savings to retire, equity appreciation or lack of performance in traditional investments), you need to think about your reasoning behind a potential career switch. Another motivation could be that you’re looking for something more meaningful, or you could be at a “fork in the road” and looking for a new adventure for you and your family.

Finding out what your motivations are will help you as you move through the franchise selection process. It will also help you feel more confident in your decision.

Is Franchising the Right Route for You?
No one wants to reinvent the wheel if they don’t have to. With over 3,400 franchise companies, there surely is a franchise that covers the type of industry that interests you. However, your franchise won’t succeed if you are not willing to follow their established system. Franchising allows you to be part of a greater organizational network and provides a teamwork atmosphere. You can collaborate with other business owners on ideas ranging from potential problems to business marketing ideas.

Franchising provides a solution for someone not looking for a high-risk situation, and provides a proven model where experience in the industry isn’t always a necessity. If you are passionate about a specific industry, but don’t have previous experience, franchises provide you with an overall business plan, training and a strategy to get you on the successful track in small business ownership.

Understanding your Strengths and Weaknesses

We all like to be confident in our abilities to succeed, but in the case of selecting a franchise and running a business, you have to understand your strengths and weaknesses. Sit down with your husband/wife, family and good friends and ask them to identify your strengths and weaknesses. Are you a strong leader? Do you have great interpersonal, decision making or time management skills? Have you had previous management experience?

Clearly identifying areas of strength and weakness will help determine how you manage your small business. The best self-evaluation of your strengths and weaknesses will come from reflecting on your past achievements in various positions of employment and from the input of your colleagues in previous industries.

What are your Decision Criteria?

Everyone has different criteria when researching franchises during the selection process. Whether you are choosing a specific industry, or deciding on different companies within that same industry, it is important to clearly identify what you want.

Are you looking for a low initial investment and ongoing costs? What about a franchise that’s proven to be recession-resistant? Do you want to manage people? Do you want to be based from home or have an office that you report to everyday? What is the established track record of success and what does the future hold for the brand? Also, consider where you want to be with the business in five to 10 years, and further down the road in 20 years.

Answering these questions can establish criteria for investing in a franchise. Making a decision on what type of business to open is one of the biggest investments you’ll make in your life. To feel confident in your choice of franchise, it is imperative you relay to the franchisor your criteria and goals for opening your own business.

How to Deal with Fear

After you have committed to investing in a franchise, the process typically takes about 60 days depending on the franchise system. During that timeframe, it’s natural for fear and doubt to set in. That’s why it’s necessary to talk to other owners within the franchise to see how they coped with the fears of becoming a first-time business owner. With so many different factors coming into play, including leaving your previous career, making the initial investment and getting the business up and running, it is important to receive input from other owners on how they overcame their fear of opening a business. Although, no one is going to write you a guarantee so conducting thorough research will help offset your fear, but it won’t make it go away completely. Your goal should be to manage your fear, not eliminate it. The other thing that’s helpful is to commit (to yourself) to making a decision once you enter the research process with a franchisor. Don’t let this decision hang over your head for long periods of time. Gather the facts, talk to the existing franchisees and the franchisor, and if they offer you a franchise, make a decision – even if that decision is “no thanks.” Once you’ve made the decision, commit to the business and don’t look back.

Right at Home

Learn more about Right at Home at topfranchises.franchisebusinessreview.com.

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