If you want to invest in a franchise, then it’s important to follow a process to ensure that you pick the right business opportunity for your needs, income desires, and lifestyle choices. This can take some time, so don’t be in a hurry. After all, this business may take up the next 20 to 30 years of your life.
- Know Your Skills – Don’t choose any franchise that requires skills that you don’t have and can’t learn quickly. For example, if you buy a franchise in the building trade, have you ever built anything? Even though you will hire employees, it’s best to understand the process yourself and how things work from the bottom up for the maximum opportunity of success.
Know How Much You Want to Earn – One thing people often don’t think of is the need to understand how much they want to earn per year. Is that number possible with your choices? What if you want to be an absentee owner; will you still be able to earn the type of profit that you want to earn? Find out what others are earning in the same business in the same sized town before you make a choice to invest.
Know Your Start-Up Budget – How much money do you have to get started and how long can you exist without a paycheck? This is super-important, because you don’t want to starve to death while you’re waiting to become profitable.
Research Several Franchises – Even if you're sure you know what type of business you want to invest in, it’s important to research several franchises that are similar. That way you can find out for sure which one is the best for you.
Meet Other Franchise Owners – When you’ve narrowed down your choice to just a couple franchises, you should ask for the last five to ten buyers into the franchise who work in areas like yours, then go meet them.
Visit the Headquarters – Often you can do things long distance, but you should probably visit the headquarters to ensure that your opportunity is truly legitimate. Most genuine franchisors want you to visit so that they can show off their skills.
Get a Lawyer and CPA – When you’re ready to read over the paperwork, it’s time to get a lawyer. Hire someone who is experienced in franchise law so that they can look over all the paperwork and approve it. You should also hire a CPA who is experienced with franchise law, who can help you set up your books and set up your business finances properly.
Sign the Documents – Finally, sign the documents and get started. Before you know it, you’ll be running your business and making a profit.
As you start your business, follow the rules of the documents you signed. Don’t get into your mind that you can do it better. While this is your own business, you have agreed to follow their standards and procedures. It’s essential that you do this. If you’re unable to follow rules and regulations, don’t buy a franchise.