Starting a new business? How to know exactly what you’re getting into – 5 easy steps to help you succeed
You’ve decided to make a break from corporate America, flex your creative muscles for your own bottom line for a change, only you’re concerned about the risk of starting your own business. Sound familiar?
No worries. There’s a great way to strike out on your own and get a new career while minimizing your risk…a way to learn everything you need to know to succeed, and learn it from people who have walked the very same path. That is to pair up with a well-run franchise operation.
The trick is making the right choice to suit your own unique set of interests and skills. The good news is all the information is readily available to help you select just the right business for you.
And once you do, a franchise operation offers a great network of support, plus a treasure trove of statistics and operating history that will give you a leg up in the marketplace.
By contrast, when you start an independent business, you must invent your concept and innovate your own marketing, inventory and accounting controls and countless other procedures from scratch, some ahead of time, and, inevitably, some on the fly as you go along, which will likely significantly impact your bottom line as you get started and optimize your systems.
With a franchise, many of those risky variables disappear since the franchise company has already figured out a system that works.
To help you make the best selection, we suggest consulting a franchise coach, who can help steer you toward reputable franchise companies. Of course, like everything else associated with your own business, the responsibility lies with you to do your due diligence before signing your name to any dotted lines.
We suggest you start with these five steps to narrow down your franchise search and maximize your success with your new business:
Conduct a personal inventory
Write a list of your professional and personal skills. Then write a wish list of the types of businesses you would like to operate and the types of skills necessary to run these businesses. See where they intersect.
Research possible franchises
Check the website of the International Franchise Association for a comprehensive listing of franchises that suit your personal profile. Then go a little deeper by Googling them.
Zero in on a few franchises
Request a copy of the Franchise Disclosure Document, required by federal law, for your top two or three franchises and read through these. Look for details about the franchisor’s background, initial and ongoing costs, litigation history, plus information about the types of training and support they offer, as well as their method for advertising, including who pays for what.
Interview existing franchisees
Learn about the types of support offered by the franchise companies. You want to find out what it takes to succeed with each particular franchise.
Interview former franchisees
Learn why things didn’t work out for them. You might get an earful about the franchise company’s shortcomings, or you might hear the franchisee wasn’t really cut out for this type of business.
The knowledge you gain by going through this research process is indispensable to you in whatever business you start. As you’ve likely heard before, success happens where opportunity meets preparation. And your research is critical to your preparation.
Ready to make your dream of becoming an entrepreneur come true?
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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