đź•’ 3 min read
Are you considering buying a franchise in 2019? Now is the time to start revving your planning engines. Franchise ownership requires hard work but the efforts you put in up front can pay off in dividends down the road. Here are five things to do now to prepare as you pursue your goals of owning a franchise in the New Year.
1. Get Clear on Your Goals
Before you can decide on which franchise to buy, you need to clarify what you’re looking for. Think carefully about what you hope to achieve out of franchise ownership. Do you want the freedom to be with your family? Or do you want the challenge that comes with building a business? Clarify what you hope life will look like when you buy a franchise to help narrow your idea of which franchise is right for you.
2. Decide on an Industry
The experience you have as a franchise owner will depend on the industry you’re in. For example, quick-service restaurant franchises require and offer different opportunities than children’s franchises. Since you will spend so much time working within your franchise, it’s important you’re in an industry you love. Choose which industry best aligns with both your goals and personal interests.
3. Get Your Finances in Order
Buying a franchise requires an upfront investment. That investment goes beyond the initial franchise fee. Some franchises will require capital investments on top of the minimum investment requirements. Others will require you to rent a facility or purchase licenses.
Decide up front what you can afford. Think carefully about how much you’re willing to invest in your franchise total. Remember, this number shouldn’t empty your bank account. Keep a personal reserve and set a dollar amount for yourself up front, so you’re sure you don’t drain your savings on your path to franchise ownership.
Knowing how much you’re able to invest now will also help guide how much you get in a loan from the bank. Put together as much information as you can to determine how much you qualify for and how much you’ll need.
4. Research Franchises That Meet Your Requirements
With your goals, interests, and finances in mind, it’s time to start exploring franchise options. Narrow your franchise choices by the most relevant filter first. For example, if you don’t want to invest much money in your franchise today, filter out available franchises based on dollar amount. Or, if you’re determined to open a franchise in a specific industry, start there. You choose where you start and how you continue to filter out your choices to find the best fit for you.
5. Talk to Your Family
Franchise ownership requires the investment of your entire family, even if they won’t be working in or on your new business. They will still be vested in your franchise because of the amount you’re taking from personal savings, the amount of time you’ll be away from the family to work on your business, and for other reasons. Talk to them about what you plan to pursue to gain their support early on in the process.
Franchise ownership is a rewarding experience. It’s also one that requires some upfront planning. By crossing your T's and dotting your I’s before you dive into negotiations with a franchisor, you’ll get started on the right foot on your path to becoming a franchisee.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.