When it comes to buying a business, there’s no truth that doesn’t require verification.
As everyone knows, if it sounds too good to be true, it probably is. Yet every day the newspaper has stories about people who got tricked into a deal that turned out to be mainly smoke and mirrors.
So how do those “lucky” folks find their way to the good business deals? First of all, luck has nothing to do with it. Rather, it’s about finding out as much information as you can and triple-checking everything you know before you even get started.
Doing your due diligence is the most critical part of the process.
That’s why a franchise presents such a great opportunity because it’s the only type of business in which you can learn everything about its nuts and bolts before you buy.
Not only does it come with a tried-and-true operating system, but it also includes complete training and ongoing support to help you make it past the start-up phase for long-term success.
Federal law requires franchisors to disclose almost everything you need to know. And what’s missing from the Franchise Disclosure Document (FDD) can be learned from franchisees. That means you can find out about all the red flags, upfront costs and whether the franchise has the potential to offer you the kind of income you desire.
In addition, another layer of vetting can be obtained by consulting with a franchise coach or two. Their no-fee advice can help you navigate a gigantic universe of some 3,000 different franchisors.
A good franchise coach can save you precious time by steering you to franchise systems with great track records that you may have otherwise never found.
So, to find a top-performing franchise, start with a franchise coach, then select a few whose business models best mesh with your skills and experience, then start to read the FDDs and call franchisees to get the ins and outs of their businesses.
In the end, you have to decide if you would rather put all your hard work and drive into building a future you can control or sticking with the steady job that may not last the rest of your career.
Stay tuned for Part II: How to evaluate a franchise
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Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at email@example.com or at (484) 278-4589.
© Dan Citrenbaum 2020