Thinking of Buying a Franchise? |
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Read These Five Tips First
Franchise businesses are booming, and many economic analysts have identified them as the primary engine that will propel the U.S. economy. But is a franchise business right for you? Follow these five pieces of advice before you make any commitments to a franchise operation.
1. Make sure you are temperamentally suited to run your own business. It's no crime to recognize that you're not cut out to be an entrepreneur. It takes relentless energy, intense commitment, and limitless reservoirs of enthusiasm to succeed as an independent business owner. Ask someone you trust whether he or she feels you fall into this category.
2. Do the right research. Even if a franchise has been successful in another part of the country, you'll want to see evidence that it has translated well to communities like yours. Don't just look at how many franchisees the organization has up and running . find out how many have been successful in markets like yours.
3. Build the right budget. Develop a realistic cash-flow plan that incorporates weak, mid-range, and strong levels of financial performance. Find out how much money you'll need to get through the "ramp-up" period.
4. Ask to talk to current franchisees. If the franchising company is at all hesitant about putting you in touch with people who really are making money by following its business plan, there's a problem somewhere. Try to hook up with a thriving franchisee in a territory that is demographically similar to the one in which you would be operating.
5. Pick a business in which you have demonstrated expertise. You're making a big investment. Be sure that investment makes use of your proven strengths! If you've spent your entire professional career using and developing one set of skills -- say, interacting with people -- don't pick a franchise opportunity that demands an entirely different set you do not yet possess - say, mechanical ability. Give yourself every possible advantage!
To learn more about how to select a franchise business that's right for you, contact Scott Forman of D.E.I. Management Group at:
1-800-224-2140 . or visit www.dei-sales.com on the World Wide Web.
