How to Buy a Franchise – Step 1

You’ve thought about it for years and you’re finally ready to make the leap into business ownership. It’s time to be your own boss, to be the one in charge of your financial future – your destiny. Because you are a smart woman, you want to avoid making mistakes along the way. You have so many questions: Will you be happy as a franchisee? Can you make the money you need to provide for yourself and your future? What kind of franchise would be best? Where do you start, with thousands of franchise opportunities available?
The simple answer is that you start with YOU.
Before you even begin looking at franchises, you need to do a thorough self-evaluation of your own business style, strengths and challenges. So find a quiet place, get out paper and pen, and as objectively as possible answer the following questions. (And don’t worry; unlike the quiz in Cosmo, “Are you a good friend?” there are no wrong answers!)
What’s Your Personal Business Style?
What part of your current and past jobs have you liked doing the most?
Do you like working with the public or would you rather be involved in a B2B company, helping other businesses to grow?
Are you an outgoing, people person or do you prefer to be behind the scene, managing the business?
Are you willing to ask for help when you need it? One of the benefits of franchising is the ongoing support you will receive but it will do you no good unless you use it.
Describe the work environment that most appeals to you.
Are you status conscious? Does it matter to you what the product or service of the franchise is or does the business potential matter more?
What Are Your Skills and Strengths?
List your skills and evaluate how well you perform each.
How do you feel about sales and marketing? These skills are most often on a franchisor’s list of desired attributes in a potential franchisee.
Are you good a networking? In many cases, a franchise owner’s role will be to make community connections by joining civic organizations and networking with various groups.
What Do You See As Your Challenges?
What part of your current and past jobs have you liked doing the least?
List your weaknesses, those things you would not want to do or would want to hire someone else to do in a business.
What Experience Do You Have In Employee Management?
Do you have experience managing employees? Did you enjoy it?
Are you comfortable recruiting employees?
Do you have the experience and skill needed to create a work environment that will allow you to retain employees?
What Is Your Financial Profile?
How much capital do you have to invest?
Can you afford to do without a regular income during the start up phase of your new business?
What are your financial goals?
How do you see your lifestyle changing as a result of meeting your financial goals?
How do you feel about taking the risk of becoming self-employed?
Are You A Team Player?
Franchising is all about following someone else’s system. Can you picture yourself in this role, executing a system you didn’t create?
Once you have answered these questions, you’ll begin to see a clearer picture of what talents you can bring to a franchise business and what you expect to receive in return. Do you see yourself managing a string of dry cleaning franchises and vacationing in Tahiti ? Or, would your perfect opportunity be to own a mall-based tax preparation service where you could mingle with your customers and have lots of free time to spend with your family?
The next step is to start looking at opportunities and evaluating them based on your answers. It may take some effort to find the right franchise so don’t feel that you need to compromise. Just like jeans, franchise opportunities com e in many shapes and sizes and you never need to settle for one that is just not a great fit. Choosing the franchise opportunity that best matches your needs, interests and style is your greatest assurance of happiness and success as a business owner.
Kim Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.