Franchising, as a pathway to entrepreneurship, may not resonate with everyone, particularly those who have aspirations of creating a business from the ground up, deeply rooted in personal passions or hobbies. However, there are a few people that should consider looking into the right options to fit their needs. Are you one of them?

How do I know which path to take?

Having a fundamental understanding of business, operations and managing people are skills at the top of the list. If you enjoy building upon the blocks already established, less hassle and potentially more success, than franchising is a more ideal route to travel as the groundwork has already been laid. It is parallel to starting a marathon 10 miles in.

Do I need experience?

Don’t worry if you have no experience in a particular industry: cutting hair, painting a house or teaching a fitness class. Most franchisors are looking for business owners, someone to work on the business, not in it. They also seek candidates capable of overseeing appointed managers or general managers entrusted with day-to-day operations. Being able to manage and operate the business effectively is key, regardless of the service.

However, it’s crucial to align personal interests with the chosen franchise concept. For instance, if exercise, fitness, or health and wellness fail to ignite enthusiasm, franchising in fitness and/or massage concepts may prove less fulfilling. You may very well operate the business successfully, however, if you do not enjoy the ride, than you need to find something that brings you a “proud to own” feeling. The difference is that you do not necessarily need experience in the industry you would like to own. Franchisors provide all the training and support systems needed to be successful.

What are my motivations?

Evaluating one’s motivations for business ownership is imperative. Why do you want to own a business? What do you see it providing for you? How would you describe this vision? If you have considered this route, than franchising can provide some beneficial elements of business ownership:

• Established business model
• Proven concept
• Systems, processes and procedures
• Initial & ongoing franchisor support
• Scalable
• Semi-Absentee

"In order for the business / franchise to survive and ideally 
grow they will have built a system of proven process & procedures, 
tested markets, know their demographics for a strong customer base, 
understand expenses and what brings in revenue." 
-5 Reasons to Consider Franchising

What might a business provide for you?

It could be a way out of job you want to leave, leading you further into a lifestyle you want to live. It could allow you to have extra income into the household. It could allow you to have flexible hours for your family. It could be a synergistic business to one you already own or possibly going a completely different direction and looking at an industry that is nothing like what you currently own! Why not balance out the seasonality of your current industry by adding a different one, providing less highs and lows during your year.

What goes into financing a franchise?

If you find interest and curiosity budding inside of you for business ownership, than financing is another piece to consider. Understanding what your financial options would be, helps you to further narrow down the right options. First off, all franchisors have a required net worth and liquid capital that potential franchisees need to have, in order to be considered and begin an investigation with the brand. From there you would need to understand how you would fund the business, as there are multiple options to consider like SBA Loan, SBA Loan Express, 401K Rollover, and Unsecured credit.

The franchisor will likely also want to know how you will support yourself during the first year of the business. Are you keeping your current job? Is your spouse working, providing the foundational income for the household? Do you have money saved up?

What other questions do you have?

Learning about different industries, your goals and needs, varying franchisor requirements, options within the business model and if it is even available in your area, help to narrow down which concepts would be the best fit for you. Many are finding themselves in varying career positions that they would like to begin learning more about what franchising could offer them.

If you are interested in getting these questions answered, set up a casual call with Telanda, the Franchise Educator.

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Click here to schedule a casual call with Telanda

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