If buying a franchise is your dream, it is important to get the planning right before you invest. For many people, investing in a franchise is equal to the purchase of a house – both financially and in terms of the impact it will have on their life.
Any major investment needs thorough planning and preparation. And it all starts with you – are you ready?
Before you buy a franchise
Start by reviewing your personal situation: your health, budget, skill set, family commitments and support, your goals. Consider what you want your life to look like in five, 10 years time.
1. Understand your motivation
Franchisees choose to own a business for a variety of reasons. What’s yours?
- You want to be your own boss
- You want more flexibility in your working life
- You have ambitious goals
- You have money to invest
- You want job security
- You want the backing of experts in your business
- You want training and marketing support
- You want to work with your partner or family
- You want an investment to supplement your main job
2. Ensure you have family support
Whether or not you want family members involved in any franchise you buy, it is important to have the support of your family in the venture.
Running a business is demanding and will take time, effort and money. Does your family understand what will be involved as you build up the business?
- Are you confident you have the support of your family if you are going ahead alone?
- Is there support for the brand you have chosen?
- Will your spouse, partner or sibling be a business partner? If so, what does this mean for the relationship?
- Will other family members be involved – either hands-on, or as investors?
An investment can change family dynamics, so it’s important everyone is clear what’s involved.
3. Analyse your skill set and what training you need
Will you bring any technical or business skills to the franchise?
Many franchises will train for the technical skills required; a can-do attitude and passion for the brand are key considerations for franchisors.
If you have already owned a business, you will know what’s involved, and be able to harness tyour knowledge. But how will you cope with following set rules and guidelines?
Reviewing your business experience means you can fit your talents and needs to the right franchise and ensure you get the training you need.
Check out the Franchise Handbook for more specific details on whether you are right for franchising, and other due diligence tips.