One of the most successful marketing concepts ever created is a franchise. With the success of franchises like Subway, Quiznos, 7-Eleven, Baskin Robbins, and so many more, buying a franchise is fast becoming one the most popular ways to start a business of your own. Buying a franchise is like purchasing an existing small business with a proven track record. You have an established name, a proven business plan that works, and an established territory to find customers. This all sounds great, but before you go ahead and purchase a franchise from an ad you saw on television or in a magazine you must do your research. You have to find out whether the franchise is right for you and that you will have the support you need from the franchiser. The first thing you must do is to find out which franchise is right for you. Where does your expertise and interests lie? In accounting or tax services; food and restaurants; automotive products and services. Do you like to travel? If you do then you should look at travel franchise. If you think youd be interested in owning a store, then you should look at franchise opportunities in the convenience store category. You choices are virtually unlimited. Once youve decided on the type of franchise you want, then you have to evaluate the franchise. You need to know if the franchise has staying power or is it another pet rock or hula hoop? Will you be in a good location or will you be trying to sell refrigerators to Eskimos? Most importantly, you need to know who the franchisers are. Check out the key executives resumes and ask them some tough questions, face-to-face. What plans and strategy does management have for continually developing a competitive edge? How much is spent for developing new products or services? Visit the corporate headquarters and talk to the companys top executives? What do they talk about? Are they frank and direct in answering your questions? Look at the work environment, and look at the lower-level employees. Are they the cream of the crop or the bottom of the barrel? Ask them, What should I personally expect from you and your top executives? Why should I buy this franchise? If you find that theyre just too busy to see you, imagine what kind of help youll get once youre in the field. The franchiser should be willing to do all of the following: train you; help with your business plan; handle complex legal, accounting, and tax issues; develop new products and services; reduce the risk of business failure; solve unforeseen problems; and help you find a buyer when its time to sell. Franchising is not always as great in practice as it is in theory. For one thing, the franchising agreement you sign may have long lists of gottas. The gottas refer to the hours youve got to stay open, the business appearance standards youve got to adhere to, the inventory levels youve got to maintain, and the guidelines and quotas youve got to follow. If youre going to buy a franchise you must be a team player. You need to be willing to accept a certain amount of regulation and give up a certain amount of freedom. Some other important qualities you must have include being goal-directed, persistent, independent, profit-focused, self-confident, risk-oriented, self-disciplined, street-smart, and opportunistic. If you possess all these qualities and you want to start your own business without starting from scratch then buying a franchise could be the be best way for you to go. If you choose the franchise that is right for you and it fits all the support criteria, owning a franchise can be very rewarding without all the headaches of starting your own business from scratch. Copyright2006 by Joe Love and JLM & Associates, Inc. All rights reserved worldwide. |
