For most young entrepreneurs, the easiest way to become a business owner without having to start from scratch is to invest in a franchise. Franchises are a rewarding way to speed up the time it takes to be successful with a business, but many prospective franchisees are hesitant to pursue a franchise because of how intimidating the franchising process seems.
With that being said, as long as you’ve got the right tools at your disposal and the right mindset to determine what franchise opportunities are best for you, you can easily skyrocket your way to success in the franchising world. One of the biggest problems that many prospective franchisees face while getting started is that they lack the skills needed to spot a good franchise.
Let’s clarify how to find a good franchise.
Be Proactive When Selecting a Franchise
Proactivity is key to success in almost anything..
Before you start evaluating all the franchise opportunities available, you should conduct a self-analysis first. Instead of getting enamored with the idea of being a franchise owner and jumping into the first franchise you see, make a list of all the business attributes you find appealing and determine what kind of business you want exactly. For example, ask yourself these questions. Do you want to work 9-5 or something with a lot of schedule flexibility? Do you want something where you are passionate about the product or something where you don’t care about the product as long as the business makes money?
Your franchise will never be successful if you choose something that isn’t true to you, so make sure you pick one that will be a good fit. If you’re nervous to go it alone or simply need help finding a franchise you think you’ll like, a franchise broker’s literal job is to help put you in a business you’ll love. Get in touch with one and you’ll be sure to find a franchise that works for you.
A starting point to discover what you want out of your franchising endeavors is to ask yourself questions about the types of businesses and industries you’re interested in, along with the industries that have an ample amount of growth potential. Moreover, while determining which franchise opportunities are the best fit for you, you should also take into account factors such as your location and the capital that you’re willing to invest in your franchise.
The Art of Spotting a Good Franchise
Not just anyone can spot a good franchise! In fact, many franchisees end up in bad deals because they weren’t properly guided into a good franchise. Fortunately, there are steps you can take to avoid getting into that situation.
After you’ve made lists of business attributes and franchise opportunities, and decided where your preference lies, things could still go downhill if you don’t practice the art of spotting a good franchise. The biggest thing to know? Tell-tale signs that a franchising opportunity is unstable.
“But how do I know if it’s unstable?”
Good question.
A few red flags include:
- When the company discourages you from reading the disclosure or using an attorney
- When the company doesn’t foster open communication and isn’t reasonable when you ask questions
- When the company refuses to provide you with the information about past franchise owners
Knowing who you’re doing business with is important. Don’t let yourself get tricked into a bad business deal. Franchising can open up amazing freedom and opportunity for you, but only when it’s a good franchise. Working with franchise experts can ensure you find a franchise that will work well for you.
Become a Franchisee in 2020
There are many reasons people decide to venture into the franchise world. Whether you want the freedom, flexibility, or financial gains that often come with franchising, it’s truly a great opportunity when you go about it the right way. If you’re thinking about transitioning from a 9-5 employee to a franchise owner, check out our free guide to learn more before you leap.