What kind of franchise should I buy? (Choosing a Franchise)
Are you tired of being managed? Sick of answering to someone else? Might be time to become your own boss. But this can be easier said than done.
If you’ve decided to make the leap from employee to entrepreneur, and you’ve decided that a franchise is the way to go, realizing your dreams will only come after you decide what kind of business you want to be in.
Deciding to go out on your own can be both terrifying and exhilarating. Being your own boss can mean more freedom and flexibility. You can work parttime or fulltime, often determined by how much you want to make. You will have no one to answer to other than yourself, and building your own business can give you new drive to succeed.
When choosing a franchised business as your new venture, you will have the benefits of buying into a business that is already established. Typically, when buying into a franchise, you will receive training, set up materials and marketing assistance. You will also reap the benefits of being involved in a business with an established brand and reputation. All of these aspects of a franchise business will make your grand opening a whole lot easier and those lean first couple of years a lot less lean.
So which franchise should you buy? There are many factors to consider when choosing a franchise. All these factors will help you to narrow down your search so that you can be confident that the franchise you buy is a great fit.
Interests
What do you love to do? If you are going into business for yourself, it’s likely at least in part because you don’t enjoy your day to day and want a change. Now is the time to do what you love. Turn that hobby into a money-making machine. If your work experience is in service but you hate the service industry, now is the time to get out. If you’re a handy person, you might consider getting into the construction industry. Do you love numbers? Commerce might be the way to go. Love children? Consider getting into the ever-growing childcare arena. Whatever your passion is, there is a likely a franchise opportunity waiting for you.
Budget
The price of a franchise can vary dramatically. Location, size of the business and the start-up package of any given franchise can all affect the buy-in. First, consider your own financial comfort level. If you’re paying cash for your franchise, there will certainly be less stress but in lieu of this, a payment plan can often be established with the business you’ve decided on and banks are happy to lend money to established businesses. You must weigh what you pay, against what you get and also make sure to factor in the cost going forward as you build your business. Ongoing fees will include franchise fees, marketing fees and overhead such as employees and vehicles.
Location
You may already know what kind of business is in your future but location can put a damper on your enthusiasm when you find out that there are no units available in the town you live in. If you are willing to relocate, this may not be a determining factor for you. If you’ve decided to be your own boss, you don’t likely want to add or continue with a long commute. Being stuck in traffic for hours a day will certainly take the shine of your new venture in a hurry. Sometimes if you are interested in a territory that is already taken, a rebuy can be made, putting you into your desired location.
Choosing the right franchise for you is a big decision. Visit franchise shows to get ideas. Sit down with CEOs and other franchise owners to gather lots of information and most importantly do your research. Owning a franchise compared to starting from the ground up should provide less stress, not more. Take your time and give this often once in a lifetime opportunity the consideration it deserves.
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