Get a job, or buy a franchise?
Franchising wasn’t designed as a job replacement strategy, but as an opportunityfor people who want to own a business, and possibly even multiple businesses.Even so, many people who cannot find a job, or a job that they desire, i.e. onethat pays well, decide to buy a franchise. That decision has a better chance ofworking out in the buyer’sfavor if the following issues are considered and resolved.
1.Do you want a job, or a business? It’s not a good idea to buy a franchise just because you can’t find a job. That’slike getting married just because you don’twant to be single.
Buy a franchise because you want to own, manage, and build abusiness. The most successful franchisees spend less time working in their business thanthey do on their business. Theyrecognize the importance of hiring staff to help them operate the business.They do not buy a business because they want to work in it, but to expand it.Ultimately, they’re building an assetthat they can sell. You can’tsell a job, can you?
2.Buy a franchise only if it makes sense for you. Be sure to do yourhomework. Read books about franchising, and attend credible seminars such asThe A to Zs of Buying a Franchise. Review the literature provided by theInternational Franchise Association.
Understand that it takes time to become familiar and comfortablewith the concept. Professionals at expos are often available to meet with youindividually to discuss what’sexpected of you as a franchisee, and to discuss your potential as a franchisee.
3.Consider the work of a franchisee. When successfulfranchisees go to work, they don’tthink about going to a job. For one thing, they’rethe boss. No one tells them what to do, and they don’t report to anyone. They are accountable to their franchisor,but their franchisor gives them a plan of action, or a business system, andafter teaching them how to follow the system, they expect results.
The work of a franchisee consists of planning, hiring, training,managing, inspecting, marketing, selling, and producing. It takes a team tooperate and build a business. Make sure you want to build a team and have theresources to do so. A good franchisor will teach you how to build a team, ifthat’s what you desire.
4.Think about marketing and selling products and services. As a franchisee, you’re ultimately responsible for distributing products and/orservices. Keep in mind that you become the franchisor’s representative. And every franchisor wants everyrepresentative to maximize marketing and sales. If you sell fewer productsand/or services than the franchisor expects, you may not be able to keep yourfranchise. At a minimum, you won’treap the financial benefits that are possible with a franchise. And in thatcase, you may be better off finding a job.
It’s important to know thatfranchisors train franchisees to distribute products and services. And a bigpart of the franchisor’s ongoing responsibilityis to continue training and supporting franchisees to excel at marketing andsales. Therefore, think about the kinds of products and services that you’d like to represent. In fact, the more passionate you are aboutthe products and services, the more likely you are to succeed as a franchisee.
5.Ask the right questions. There are at least 75 major industries usingfranchising as a method of distribution, and there are some 3,000 franchiseopportunities available in North America. If you’recut out for franchising, you can find an exciting franchise business, includingone in your investment range. Many people are surprised to learn that somefranchises require less than $10,000 to start. Nonetheless, you must select thebest franchise for you. Asking the right questions will lead you to that goal.
As a reader of our blog, and as someone who needs to know theright questions to ask, we’vereserved a gift for you. You can get a free copy of Amazon.com’s best-selling eBook, 101 Questions to AskBefore You Invest in a Franchise,by clicking here.The book will help youinvestigate franchise opportunities.
If youconsider the five issues outlined above, and follow our recommendations, you’ll soon be able to decide if buying afranchise makes sense for you. What do you got to lose? You can always keeplooking for a job!
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