Credit: Shutterstock photoFranchising wasn't designed as a job replacement strategy, but as an opportunity for people who want to own a business, and possibly even multiple businesses. Even so, many people who cannot find a job, or a job that they desire, i.e. one that pays well, decide to buy a franchise. That decision has a better chance of working out in the buyer's favor if the following issues are considered and resolved.
1. Do you want a job, or a business? It's not a good idea to buy a franchise just because you can't find a job. That's like getting married just because you don't want to be single.
Buy a franchise because you want to own, manage, and build a business. The most successful franchisees spend less time working in their business than they do on their business. They recognize the importance of hiring staff to help them operate the business. They do not buy a business because they want to work in it, but to expand it. Ultimately, they're building an asset that they can sell. You can't sell a job, can you?
2. Buy a franchise only if it makes sense for you. Be sure to do your homework. Read books about franchising, and attend credible seminars such as The A to Zs of Buying a Franchise. Review the literature provided by the International Franchise Association.
Understand that it takes time to become familiar and comfortable with the concept. Professionals at expos are often available to meet with you individually to discuss what's expected of you as a franchisee, and to discuss your potential as a franchisee.
3. Consider the work of a franchisee. When successful franchisees go to work, they don't think about going to a job. For one thing, they're the boss. No one tells them what to do, and they dont reportto anyone. They are accountable to their franchisor, but their franchisor gives them a plan of action, or a business system, and after teaching them how to follow the system, they expect results.
The work of a franchisee consists of planning, hiring, training, managing, inspecting, marketing, selling, and producing. It takes a team to operate and build a business. Make sure you want to build a team and have the resources to do so. A good franchisor will teach you how to build a team, if that's what you desire.
4. Think about marketing and selling products and services. As a franchisee, you're ultimately responsible for distributing products and/or services. Keep in mind that you become the franchisor's representative. And every franchisor wants every representative to maximize marketing and sales. If you sell fewer products and/or services than the franchisor expects, you may not be able to keep your franchise. At a minimum, you won't reap the financial benefits that are possible with a franchise. And in that case, you may be better off finding a job.
It's important to know that franchisors train franchisees to distribute products and services. And a big part of the franchisor's ongoing responsibility is to continue training and supporting franchisees to excel at marketing and sales. Therefore, think about the kinds of products and services that you'd like to represent. In fact, the more passionate you are about the products and services, the more likely you are to succeed as a franchisee.
5. Ask the right questions. There are at least 75 major industries using franchising as a method of distribution, and there are some 3,000 franchise opportunities available in North America. If you're cut out for franchising, you can find an exciting franchise business, including one in your investment range. Many people are surprised to learn that some franchises require less than $10,000 to start. Nonetheless, you must select the best franchise for you. Asking the right questions will lead you to that goal.
As a reader of our blog, and as someone who needs to know the right questions to ask, we've reserved a gift for you. You can get a free copy of Amazon.com's best-selling eBook, 101 Questions to Ask Before You Invest in a Franchise , by clicking here . The book will help you investigate franchise opportunities.
If you consider the five issues outlined above, and follow our recommendations, you'll soon be able to decide if buying a franchise makes sense for you. What do you got to lose? You can always keep looking for a job!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
