Starting a business takes ingenuity, hard work and a bit of a maverick attitude. While your friends are watching television or gaming in the evening, you are studying business plans. While they are out of town having fun on the weekend, you are working a side hustle to make extra money to get your business going. Making sure you have what it takes to run a business will save you a lot of time and money.
Entrepreneur Vs. Franchise Owner
If you are inclined to strike out on your own and always put your creative powers to work, you are not going to be happy running franchises only. That doesn’t mean that owning a franchise doesn’t take ingenuity but your ingenuity has to be in implementing an existing business plan. If you want to create business plans, then don’t set up a business portfolio that contains only franchises. Try to start your own business so that you can have the creative freedom that you desire. Keep in mind it is more risky, but with focus and a lot of hard work you can succeed.
You’re On the Hook for your Brand
No matter how great the business seems at the start, once you buy a franchise you are part of the team. This team may be national or international. Scandal sells, and one poor quote from someone high in the corporate structure can cast a bad light on every store. In addition to a business mistake that may reflect badly on the brand you just bought into, be aware that you may be on the hook for political choices made by corporate leadership. In a highly charged political environment, you may face backlash over a position you don’t personally hold.
Help is Available
Despite all the risks to buying a franchise, once you’re in the loop, you will get a lot of support. You are under the umbrella of a well-known brand. Franchisee support can include help with training and hiring, and you may have help in finding your real estate. In addition, being part of the franchise structure means you can get access to supplies and construction materials at a lower cost. Your time and money will be amplified as you access the support available from the franchise structure you’ve chosen to join.
Do Your Homework
Most franchise investments aren’t cheap. If you find a real bargain on an existing franchise spot, find out why it is on sale. Is the current owner in need of a way out, or is there a serious problem with the current location? Finding franchise opportunities that already have a brick and mortar address can be a blessing, but only take them on if you’re able and willing to correct the problems that made them such a bargain.
Put On Your Uniform
If you are interested in owning a pizza franchise, get ready to really make some dough. Before you put your money into an existing business model, make sure that you know how the business works
- from the inside, and
- from the bottom up
One of the biggest challenges for any business owner is finding and keeping skilled, quality staff. If you are interested in owning a sandwich shop, find out what the work entails. You will be making decisions about who will work at your shop, at least at the managerial level, so you want to know that the leaders you pick have the skills to both train and support lower level staff so they stay. Training that walks out the door is a waste of your time and money.
Read the Fine Print
Your business purchase will include a Franchise Disclosure Agreement. Study this document and understand that failing to abide by this document could cost you your investment. While it may ultimately be possible to get out of this agreement, it won’t be easy, timely or cheap. If you come up with a great idea to improve a process, there’s no reward. In fact, changing up your process in your store may cost you your franchise.
A franchise isn’t a business out of the box. It will take work, both at the front end while you’re searching for a franchise to buy, and once you get the business up and rolling. However, as long as you are aware of the structure and are willing to work within and embrace the structure as designed by the corporation, you can build a reliable income with the purchase of a franchise.
