Three Ways a Franchise Can Lower Your Risk
Tired of the 9-to-5 grind?
That has become a quaint expression in today’s economy since most people work far more than 40 hours, and some people are veritably chained to their employers seven days a week via email and text message.
No wonder so many people want to change jobs. More than half of all U.S. workers are not satisfied with their jobs, according to the most recent survey by The Conference Board. Moreover, upwards of 70 percent of them are thinking about changing jobs, according to monster.com.
A better option might be to take complete charge of your career by going into business for yourself.
A great way to lower your risk is to buy a franchise, which offers a multitude of advantages for the new business owner.
Three Key Ways a Franchise Lowers Your Risk
First and Foremost is the Financial Disclosure Document
With no other type of new business do you get as much information upfront as with a franchise, thanks to the federally mandated Financial Disclosure Document. Most new businesses begin with a vision, but their operations must be invented every step of the way. By contrast, a franchise will teach you exactly how to run the business to maximize success. They have done it many times before, and they know what works.
And you can learn just how well all this has been working by reading the FDD, in which franchisors disclose a history of the business, including when it was established and any other names under which it has operated. You can also learn if its executives have faced any litigation or ever failed in a business.
You can ascertain exactly how much money you need for your initial investment, including fees, estimated wages and costs to purchase supplies, inventory, set up an office, as well as for insurance and rent.
And since being fully capitalized is one of the keys to ensuring your business makes it for the long run, this information can make the critical difference between success and failure.
The FDD also has a list of franchisees currently in business, as well as those no longer in operation. This list becomes one of your most important resources. We recommend you call as many franchisees as possible to learn how they’re doing, and whether they are happy with the franchise company.
Second, a franchise comes with a proven system
While not all franchises are created equal, the good franchises have developed an operating system meant to create the conditions necessary for success. They have a group of franchisees continually testing new ideas and improving the system. These folks, as well as support staff, can offer lots of helpful advice along the way.
Third is the training and support to help you learn the system
When you buy a franchise, you have a whole team of support behind you. A good franchisor is invested in your success. The franchise company has a built-in incentive to help you succeed since the more money you make, the more they make, too.
Before you even make a purchase, you will have lots of phone conversations, as well as in-person meetings about the franchisor’s system, their training and support and even what type of profits you might expect.
Still, a franchise is not for everyone. If for some reason you don’t like the franchise system or you don’t plan to follow the system as laid out by the franchisor, don’t buy the franchise. If you prefer to invent your own business model with ideas hatched in your own creative imagination, a franchise is not for you.
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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 firstname.lastname@example.org or at (484) 278-4589.
© Dan Citrenbaum 2020