Some aspiring business owners would dedicate their time building their business from scratch. They typically choose this path to ensure they stay in charge. They want to have full control and responsibility of their brand, from thinking of a business idea to sustaining business growth. Some would rather grab a franchising company instead.
You may have already made up your mind to buy a franchise instead of building your own business. You managed to find some franchising opportunities to explore. But one question that could be lurking in your mind is: which franchise business should you invest in?
Too many people invested in a franchise only to say good goodbye after a few years. According to a study conducted by Timothy Yates, 65.3% of franchisees managed to survive four years into their business. This is lower compared to the number of independent businesses that survived in the same period.
When it comes to choosing a franchise to buy, there are more things you need to consider. This is aside from studying their franchise system. Asking yourself the right questions will help you determine if you already found the right franchising opportunity for you.
Will the Franchise Opportunity Support a Current Demand?
When it comes to choosing a business, one major consideration is checking if there is a market for the business idea. You need to make sure that the market is not overcrowded and you choose a company whose services are well-accepted by the public. As much as possible, think of a consumer problem that you are passionate and knowledgeable enough to solve.
For instance, you realized that there is quite a market for cleaning, sanitation, and disinfecting business during the pandemic. Commercial consumers, in particular, want to ensure their properties are clean and disinfected. Then you might consider buying a commercial cleaning services franchise.
Now that we are living in uncertain times, such business idea is timely and in demand. You also enjoy keeping things clean, working with clients, catering to their needs, and can use your knowledge to benefit the business. This could mean that such an opportunity can be a sensible one.
What Are the Things You Are Good At?
One might think that a franchise business already meant you no longer need anything else besides capital. But know that this is never the case. Franchisees should also take time to examine their skills and be willing to reinvent themselves.
Sure, some franchisees managed to hire themselves a manager who will take care of the business on their behalf. But know that to truly enjoy your business, it pays to be as hands-on as possible. This way, you can use your relevant skills to encourage business growth.
You don’t necessarily need to be an expert at anything. You already have the guidance of experts who managed to establish their brand. But you are still in charge of the brand, and this can affect your business’ future.
Are You in Favor of the Franchisor’s Mission and Values?
No matter the type of business you invest in, company culture matters. Sometimes, it seems like you already found the perfect franchising opportunity for you. But after making the investment, you suddenly find out that you and your franchisor have different views, values, and missions.
You must find a franchisor that you can agree with the mission and values. This will ensure you are gearing towards achieving the same goal. If not, conflicts will surely arise along the way.
Be sure to read and ask your franchisor what their mission, core values, and visions are. Dig deeper and know the story behind the brand. Remember that both the customers and your employees crave strong values and a thoughtful mission when choosing a business to serve and support.
Have You Done Due Diligence?
Research is crucial when finding a franchise opportunity. You need to know everything there is to know about your franchisor. This includes the reviews of past and current franchisees and their future goals.
You need to find out all the fees and costs associated with running a franchise from their business. It pays to know all the rules and regulations before you sign anything. This way, you still have control over the brand and won’t be violating any clause in your agreement.
It also makes sense to have an exit strategy even before you enter the business. This way, you won’t be trapped in the venture in case you decide not to pursue the business. This also helps give you access to other opportunities in the future.
Buying a franchise is nowhere simple. There are so many factors to consider and many questions to ask. Be sure to ask the right questions and do due diligence before you invest.