A financing option often overlooked that is...
Choosing a proven franchise system can drastically improve your chance at success. However, a franchise isn't an automatic guarantee of success in the business if the system doesn't have a sound plan. You need to research the business opportunity before spending a single dollar or you may find yourself with a failing business within a year. There are a few specific characteristics to look for when choosing a winning franchise team.
Start by narrowing down your choices by checking the number of businesses the franchise company has already established. Systems that already have at least 25 working models will offer you the best opportunity. Developing 25 or more stores will give the team a chance to work out the issues and problems before you join in. Spend more time focusing on your success and less time trying to deal with the issues of a brand new concept. Getting in on the ground floor can give you a boost, but it is a gamble that could also leave you without a successful business.
Talking to existing franchisees is another important step in researching your favorite opportunities. Don't stop after a discussion with just one business owner. Talk to a variety of owners in different regions and markets. You need a balanced and varied view of the franchise experience. Discuss the individual's experience with the parent company. Look for business owners who have been working within the system for a few years for the most in-depth knowledge.
Finish up by examining the history of the franchise in the news. Check for earning reports and marketing announcements. You can often find a potential issue that you won't hear about from the franchise company. Don't trust the warnings released by every news outlet, but check for general trends when it comes to warnings and reports of trouble within the company.
Look for a well-established franchise that offers plenty of support for new members. Training will help you succeed in every type of business. A complete franchise package ensures you succeed through the first three years of business, which are the hardest in every sector.