Opening your own business is an exciting yet stressful time. There are so many options that you can choose from and different paths to take. Franchising is a unique opportunity to own a business that already has a proven track record of success. Here are the top six ways to know if a franchise opportunity is right for you.
1- Interest in the Industry
A franchise opportunity might look good on paper, but you’ll know if it’s a right fit for you if you have a personal interest in the industry that business is in. Think about if you can dedicate months or years to the business opportunity. For example, if you purchase a salon franchise because it looks to have more sales but you aren’t interested whatsoever in hair and beauty services, then you should consider looking for other franchise opportunities that are a better fit for your personality and personal interests.
The price of the franchise opportunity also plays a big factor in deciding if it’s right for you. Just like when you are looking to purchase a new home and have a budget in mind, you should approach purchasing a franchise in the same mindset of having a target budget and price. Remember that the amount of money it takes to purchase the franchise will be how much you need to make in sales before you can break even on the purchase, so make sure to plan for this start-up cost accordingly in your budget and how long you’re willing to wait to make your money back in the initial purchase cost.
3- Sales Track Record
Franchise opportunities are unique in that they disclose their sales success and business model before you make a purchase. This gives you a clear picture of the kind of business you’d be getting yourself into as well as a better indication of how quickly you can get the franchise up and running to make its own sales. You’ll know the franchise opportunity is right for you if both their financial information and business plan is clear to you.
4- Customer Reviews
It’s not enough to read through the materials from the franchise about their own business. Do more research by looking up customer reviews online or on social media about the business. A franchise that has five-star reviews and good customer reviews is a clear indication that the opportunity is a right fit for you.
5- Local Competition
See if there is local competition that is either another business that is in direct competition to the franchise, or if this franchise already exists in your area. More competition means it could potentially take longer for your franchise location to make steady sales. Less competition for the particular franchise opportunity you’re interested in shows that it may be a good fit for you.
6- Available Support
The great aspect about franchises is that they usually have a network of support that can help you jump start your new business. Whether it’s the franchisor directly or other franchisees that have already established their locations in other towns, a support network is another clear sign that the opportunity is right for you.
Franchises are an exciting new business opportunity that can have tremendous benefits. Find a franchise that’s right for you through diligent research and asking questions before making a purchasing decision.