So you’ve overcome the hurdle of actually doing something
about your desire to explore owning a business.
Congratulations! Over the past few years off and on you
have attended business shows, spoken with sales representatives and
spent a great deal of time poking around the internet. There
is a franchise business expo this coming weekend and you are ready
to get started with finding a business. Not so fast.
Similar to starting a fitness program there are a few
preliminary steps to think about. It may seem as if some
these steps are slowing you down but, in the long run they are
ensuring a strong foundation for your potential success
as a franchise business owner.
Following are some of the “getting ready” things to
START WITH WHY?
In his book, “Start With Why” author Simon Sinek
introduces the concept of the “Golden Circle”. Three distinct
areas: the what, the how and the “why” provide the foundation for
the circle. Starting with why provides the purpose, cause or
belief around “why” you are interested in potentially starting a
business. Not certain other than a stalled career, no
worries—just asking the question stirs the necessary contemplation
to move you closer to aligning with your “why”.
WHAT DO YOU DO BEST?
Do you know what you do best? Are there
competencies that you used in your prior career but don’t
necessarily want to continue to use? What kind of setting do
you work best in? Consider conducting a SWOT (Strengths,
Weaknesses Opportunities and Threats) Analysis on yourself.
You could use a formal process or a simple one such as a
self-audit, a conversation with a trusted friend or a coach.
Understanding what skills you have allows you to leverage them to
FINANCIAL FITNESS APPRAISAL
According to most fitness
, the first step you should take before
beginning a new workout routine is to assess your current fitness
level. An effective way to assess your financial fitness level is
to take look at a few areas.
For example, check your credit. There are free services
or go directly to one of the three major credit bureaus. If you
have not checked your credit in a while it is a good idea to do so.
Often cleaning up credit or challenging erroneous information
helps secure necessary financing. Understanding where you are
financially is important ideally before you start due
Franchising is an awesome unique business format, however,
similar to getting a check-up before you begin a vigorous workout
program—know your numbers.
Following are two additional important financial
- NET WORTH- An individual’s total assets minus
their total liabilities. It is surprising how many people
don’t know their number. Do the math so that you can honestly
assess your financial fitness.
- MONTHLY EXPENSES- How much do you really spend
on a monthly base? These numbers are important. As a
w-2 employee you get paid with some regularity. As a
potential business owner, you now have your household expenses plus
your business expenses to manage. It is better to operate
with no surprises. Knowing these numbers establishes the
maximum amount that you and perhaps your spouse or partner is both
comfortable and qualified to invest into a business.
A BETTER VALIDATION
By taking the time to start with “why”, examine your skill set
and evaluate your preliminary finances you are off to a better
start. You’ve planted yourself confidently on the path to a better
validation and perhaps business ownership. Getting ready to
get ready starts to make more sense.
Author: Helane Wilbourne, SPHR/MBA
Visit FranchiseExpo.com where
you can search for opportunities by industry, investment level
and area while researching the franchise industry as a whole using
its free resources.