Franchising is unique in that it offers people the opportunity to become business owners without the hassle of inventing a business model for themselves from scratch. Additionally the support often offered by franchisors can be a huge help in making new franchises successful. However, not all franchise opportunities are created equal, and not every franchise is as good for one investor as it would be for another.
If you decide to become a franchisee there are some important things to keep in mind when you’re deciding which franchise opportunity is really worth going for.
A Franchise isn’t Just an Investment
Whether a franchise is right for you is a separate question that we’ll get into in a moment, but first we need to make sure that the franchise opportunity you’re looking at is a good investment in general. Here are some things to watch for, and to talk to existing franchisees about.
Profitability – The first concern for any investor, of course, is to make sure the investment is likely to pay off. Make sure you know what to expect in terms of revenue and profits both in the short and long term.
Franchisee Education – A robust franchisor should provide the education you need to successfully run a franchise. Make sure your Franchisor offers the education you need before you open the doors on your new business.
Support – Becoming a successful business owner will require ongoing support, and it’s in the Franchisor’s interest to ensure your success. The lack of such a support system is a serious red flag.
Making Sure You’re Right For Your Franchise
The success of a franchise, more than most any other kind of investment, relies on the buyer. You’re not just investing in a business, you’re becoming a business owner, and that means you need to make sure you understand a lot more about the industry than you would for a less involved investment.
Go For Something Familiar
If you really apply yourself it’s entirely possible to insert yourself into an unfamiliar industry, but your odds of success are going to be much better if you shoot for something that you already have experience in.
Did you work in retail way back in college? Were you a line cook at a restaurant? Did you work in the childcare, beauty or fitness industries? A few years of experience in an industry gives you an inside perspective that can provide significant advantages beyond anything even a solid franchisee education program can provide on short notice.
Pick Something You Care About
While it’s important to choose something that’ll be profitable, you also need to make sure it’s something you can be passionate about. As a business owner you’ll be spending a lot of your time and energy making it succeed, and you need to believe in what you’re doing if you want to avoid burning out.
We hope this helps you decide on the right franchise for you, and wish you the very best of luck in your franchising investments!
Alan Parsons writes for Blocks Pizza Deli in Miami, which offers pizza franchise opportunities in Florida. Click to find more information about pizza franchises, and why we think they’re the best and tastiest of options.