Once your mind is set on beginning your own entrepreneurial journey, you will likely be in one of two categories. The first is when you know exactly what type of franchise opportunity you want. The second is, well, uncertainty. Whether or not your mind is made up, it’s still a useful exercise to look into ways of researching a promising franchise opportunity, of which there are over 3,000 choices. You may have worked your way up in the restaurant business for over 20 years and are ready to run one of your own, but there are still factors you should consider before you sign on the dotted line.
Before you begin researching franchise operations, take a healthy look at the current economic indicators for the foreseeable future. While no one report should be considered a reliable forecast, there are several short and long-term assessments available. The U.S. Small Business Administration’s website includes a dozen quality reports which should give you the clearest picture of what the economic climate will look like when you’re ready to open your doors for business.
New or Used?
This question always comes up when buying a vehicle, but many don’t realize it applies to owning a business as well. If you’re committed to starting from scratch with your own ideas about location, building size, lease and territory, you’re in the “New” category. But what about a used business? It certainly doesn’t carry the same connotation as a car. In fact, a used—dare we say—established, franchise business might be the way to go in order to avoid the hassles of starting from point A.
Manage Your Own Expectations
People who decide to go into franchising come from all walks of life. Multimillionaires looking to add to the portfolios are out there with Veterans returning from conflict zones. They have different desires, different break-even points, different business plans and different ideas of how to measure success. You should have a very clear understanding of your own expectations, codified neatly within your proposed business plan. If your goal is to reach break-even status within the first six months, you best research only those franchise concepts in which this is a possibility.
Do’s Vs. Don’ts
There are several do’s and don’ts embedded in the process of researching franchise opportunities. Always assess individual franchise opportunities carefully. Be sure to ask the right questions, while taking the time to validate with other franchisees already in the system. Do a little bit of your own market research of customers and yes—even competitors--in your immediate area. Don’t rush the process because you’re excited or anxious. If the opportunity that comes along is the right one, it should remain so. Be sure not to rely on the viability of the opportunity solely on the franchise brand’s word.
Keep in mind that with over 3,000 franchise concepts to choose from, there’s a business out there for everyone to own. We just want to make sure you end up with your own version of an ideal outcome.
If you’re a current franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution in determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes a predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2017.