There’s no doubt about it that buying a franchise is a good investment. Like any other profitable venture, however, it’s not for everyone. In fact, some find it difficult to run a franchise despite it having a proven business model, let alone drive it to success, precisely because they don’t fit right in such a business approach.
If ever you’re thinking of going this route as you start your entrepreneurial career, know if it suits you before jumping in. Ask yourself these questions to know if you and a franchise are a good match:
Are you comfortable following someone else’s business idea?
When you buy a franchise, you’re essentially getting an idea of how to run a business. There’s already a manual and you just have to comply with what’s written. In this sense, those who don’t have any experience yet in the industry and are looking for some sense of stability in their investment find franchising the best solution for their needs.
If you’re the type who thrives in growing someone’s idea and finds comfort in an established set of rules, then buying a franchise might just be a good fit for you. You simply have to be in tune with the culture of the brand you’re getting.
On the other hand, if you’re the type who wants to have more freedom and be more creative when managing things, then pour your heart out in coming up with your own business idea by all means. Just remember that there are far greater risks in building a business from scratch than following a proven business model.
What does a typical franchisee do on a daily basis?
Although you’re running an already successful brand in a franchise, you still have to put in a lot of work growing it. That may mean going to your clothing or sub-franchise every day and staying there for long hours, making sure that everything is going smooth. That may also mean leading brainstorming sessions or building rapport with customers and clients.
Hard work can mean a lot of things. Before you buy a franchise, visit their stores. Observe how the owners oversee things. Pay close attention to the challenges they face on a daily basis. If possible, gauge how many hours they put in their businesses.
Once you get a good picture of what their life is like, imagine yourself doing the same things they’re doing. If you can envision yourself doing it for the next five to seven years, then you might just find success in this business route. However, if you cringe at the way things are, explore other business ideas.
Do I have enough money?
Of course, financial stability should be your concern when starting a business, especially a franchise. Ask the franchisor directly what the start-up costs are. In general, costs include licensing, legal and accounting, working capital, supplies and inventory, and construction of the store.
You would also have to pay for the training program, but don’t worry because this is often covered already in the franchising fee. The good thing about franchises is there are many packages, and you can choose based on your budget. Moreover, you already know your starting costs right off the bat, giving you an idea immediately how much you should save up.
Again, franchising — just like any other business — is suited only for some. Do some self-assessment before plunging into this venture. Be sure if this is really a good fit for your passions and personality.