Complete these tasks to decide whether now’s the right time to invest in a franchise
You’ve been thinking about running your own business for a few years, getting fed up with the corporate rat race or not being fulfilled in your work life. Gradually, you get closer to making the move, researching franchising, looking at potential matches and narrowing down your choices.
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At some point, you’ll have met your chosen franchisor, either at a one to one meeting or a group discovery day. That meeting is likely to be the start of the process of buying a franchise, but there will still be due diligence and planning to complete.
It’s at this stage where some prospective franchisees get stuck, honing their plan over and over, reworking the projections, trying to identify every potential risk to their future success. And the current political and economic uncertainty doesn’t help.
Sometimes it will take a leap into the unknown to enable you to move forward. There’s no right time to buy a franchise or ‘perfect’ moment when success is guaranteed. However, that doesn’t mean you should ignore any doubts you have or neglect the due diligence and planning you need to do.
Do these four things as you decide either to invest in a franchise or agree you aren’t at the right stage in your life to take the risk.
1. Assess your skills
Firstly, spend some time assessing yourself. What are your key skills? What do you enjoy doing? Have you got the drive and commitment to put the effort and hours into starting a business? Does your chosen franchise give you the opportunity to work to your strengths?
2. Conduct a financial review
Have you spent time working out how much you’ll need to take out of the business as ‘wages’? Are you being realistic about the earnings potential of the franchises you’re contemplating?
3. Do your due diligence
Have you done the research and due diligence needed to properly assess the franchise? There is lots of advice and support available to help you do this. Have you taken legal advice about the franchise contract to ensure you understand what you’ll be signing up to?
4. Measure your excitement
Finally, can you see yourself as the owner of the business you’re considering? Are you excited at the prospect of running the franchise, dealing with the customers and staff and making a positive difference to your life?
Nerves are natural, as buying a franchise is a big decision. But if you’re struggling to summon up enthusiasm or are not passionate about the opportunity in front of you, then maybe it isn’t the right one for you after all.
Working through these four key areas will help you understand what is holding you back and whether you’re being overcautious or are underprepared. Franchising can offer a great way to get into business for yourself with the support to help you succeed. But the number one reason for success is always going to be you. Your passion, commitment and hard work are all needed, so you can’t be half-hearted about this new challenge.
Cathryn Hayes is franchise director at Revive! Auto Innovations