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Evaluating
Franchises – Before You Begin
by
Jeff Elgin
If you’ve toyed with the idea of leaving
the corporate world and thought about getting your own franchise,
you know that you are filled with questions. Is this the right
move for me? What are my first steps? How can I avoid making
a mistake?
You
are starting at exactly the right point by examining the questions
you should ask yourself before you start focusing on specific
franchises. Franchising is a wonderful business model
that can produce great personal success, but it is not right
for everyone. The best place to start is by an objective
and thoughtful evaluation of your own strengths, weaknesses
and goals for entering a franchise. Ask yourself the
following questions:
-
What
do you enjoy doing in a work environment? What are
your strongest skills? Make a list of your strengths
and the things you like doing.
-
What
tasks do you not enjoy? What frustrates you? Make
another list of the tasks that, even if you are able to
perform them, you don’t want to or you would not
be happy doing.
-
How
do you feel about managing employees? Are you effective
at creating and sustaining a work environment that people
want to work in? Have you had experience recruiting
and retaining employees in the past? This is a critical
management talent necessary for success with most franchises.
-
How
do you feel about risk? What’s the most financially
risky thing you’ve ever done? How much risk
can you assume and still sleep comfortably at night?
-
Is
status an important issue in picking a business? Does
it matter to you what the product or service of the franchise
is or just whether the business can meet your goals?
-
How
much capital do you have to work with? How much can
you reasonably invest into the startup of a new business
without leaving yourself financially strapped?
-
What
are your goals? Financial as well as lifestyle. How
do you see you life changing in the next few years as a
result of owning your own business?
-
How
do you feel about executing someone else’s system?
This last point is especially critical. A
good franchise system is not looking for innovation in a new
franchisee. They have a proven operating system and they
are looking for people who have the capital and management talent
to execute their system to produce predictable results. If
that doesn’t seem attractive to you, you might be better
off doing something else.
After
you have completed an assessment of yourself by answering the
questions above, you will have the foundation of information
you need to know if a franchise is right for you. The
next step is to start looking at opportunities and evaluating
them based on your answers. It may take some work but
don’t compromise. Sooner or later you’ll
find an opportunity that is the right match for your talents
and goals
Jeff
Elgin is the CEO of FranChoice, Inc., a consulting network
that provides free assistance to help consumers find great
franchises that match their goals. Contact FranChoice
at: www.FranChoice.com
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Franchise
Advice |
You’ve given it a lot of thought
and carefully considered the alternatives. You’ve decided
you have what it takes to succeed. You want your own business. More
specifically, you’ve decided you want a franchised business.
What do you do next? What can you expect
from franchise companies? How will you know when you’ve
found the right one for you? Let’s deal with these questions
in the order that you’ll face each issue.
Learn
More... |
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The Bottom Line |
Am I a Good Franchise Candidate?
With the knowledge that most new businesses are likely to fail
within the first few years, it makes sense to consider a franchise, as
the success rate is far greater. If you
are at the point where you are reading this article, you are probably
someone...
Learn
More...
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