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What You Need to Do Before Buying a Franchise
Planning is usually the key to any successful business endeavor. This is true for franchising as well. And the first step in planning, involves a good bit of self-examination. If you’re looking at buying a franchise, you should be able to answer some basics questions about yourself, and what you want out of a franchise opportunity. Then make sure the franchise business you choose to invest in meets these needs.
Make a frank and truthful assessment of you abilities. What do you really enjoy doing? What types of work have you and can you do? And what are you not able to do as well? Knowing your interests, limitations and abilities will help you narrow down the best franchises for you.
Also take into consideration what you want out of a franchise business. What kind of lifestyle are you aiming for – now and ten years down the road? What kind of returns do you want out of your franchise business?
With a clear picture of what kind of work you can do, and what kind of lifestyle you want your franchise to provide, you can now start whittling down the long list of franchising opportunities to only include those that will fully meet your criteria. Keeping in mind that a business which only meets some of your pre-stated needs, no matter how attractively presented, will most likely be a disappointment. Be firm, and make sure everything on your wish list is addressed.
Finally, be sure to do your own research. Don’t take the franchisor simply at their word at this point. Contact other franchisees and layout to them what you are looking for in a franchise business. Ask them if they think this opportunity would meet those needs, and if they know of any pitfalls. Contact as many franchisees as you need to feel comfortable with your decision. Perhaps you can even ask them if you can follow them at their work for a few days, or work as an employee for them for a time. Be sure to have a very good grasp on the franchise business before you commit.
Take all of this background knowledge of yourself and the franchise business and approach the franchisor with a clear and concrete plan for your future business. While this may impress your franchisor, mostly it will reassure you that you have laid a solid foundation for your business and for your future.