Buying a franchise is not a simple process; but, it can be made easier if you follow some basic rules. Here are some things to keep in mind when investigating a franchise opportunity: DO: 1. Take your time and educate yourself; it can take several months to find the right business. Commit to the process. 2. Know your financial situation (Assets, Liabilities, Net Worth) 3.
Whatever you call it, cash, money, big pockets or something else, makes no difference. Way back in my earliest franchising experience, we had a board member who was one super guy. His Dad had the big pockets from another business but our board member had lots of wealthy friends too. It was not a big problem for him to add new money within a couple of hours when we needed it.
A current or former franchise owner is the real franchise expert you need to connect with and relate to before buying a franchise. During the franchise search process it is important to investigate all options that can help you find the right business. This can be an exhausting journey that will revolve around discussions with franchisors, franchise consultants and business brokers.
Many franchise opportunity buyers have been interested but cannot seem to get funding for a business during the recession. The Obama Administration did put into play a couple of changes on the rules for SBA (Small Business Administration) loan guarantees. Previously, they only guaranteed 80%, but now that figure is 90%; this was part of the Economic Stimulus Package.
When looking for franchise opportunities, it is important to choose a franchise business that is in an area that interests you. If you love good food, then you may decide to open a franchise restaurant; if you love pets then you may decide to open a pet store franchise; and if you love music, then opening a record store might be the perfect franchise idea for you.
On several occasions while I was the CEO of a franchise company, and on on many occasions in the last 30 years while advising people who buy franchises, someone was buying a franchise using "Daddy's money." Most of the time it wasn't a good idea. Lots of times these deals occurred right about the time of college graduation. He doesn't want to teach after all "My son, " a dad told me in my office, "is about to graduate from college and he doesn't really want to be a teacher after all.
Once you purchase a franchise, change in your life is inevitable. The transformation of your day to day work and life existence can be challenging if you don't have realistic expectations, balance and a positive outlook. Here are some tips to help you: 1. Expect Change Change will be an inevitable force in your business. As a franchise owner you may have different hours, challenges, debt and income fluctuations than you did when you were employed.
Restaurant franchising is branching out! Until relatively recently, pizzas, burgers, curries, chips and fried chicken were the staple fare associated with restaurant franchises. Following on from this, themed food became the order of the day, with Chinese, Japanese and Italian menus topping the popularity charts. Then came specialist coffee shops, ice cream parlours, sushi bars, and bagel and donut kiosks.
Who's going out of their way to keep you as a customer these days? ... Can't think of anyone? You're probably right. And isn't that just wrong? Especially now. This is a common business error Business owners -- including franchisors and (especially) franchisees -- make this same mistake repeatedly. They even do it in the best of times, but it's easier to get away with it then -- who needs to keep customers when there are so many customers to be had?
One of the most important questions any first-time potential business owner ponders is whether to start their own new venture or to look at franchising. The answer has many components attached to it that need attention. Let's review some of those considerations. Starting up a new "mom and pop" type business is statistically very risky. Numerous studies have been conducted on this subject, and the general consensus indicates that 90-95% of new independents fail within two or three years.