- How to Know You’re Ready to Take on Your First Franchise - March 11, 2019
You might feel ready to take on your first franchise business, but feeling ready is different from actually being ready. Owning a franchise is an attractive investment; you’re your own boss with the added benefit of having an established brand name backing you.
While it sounds attractive, you need to be ready to take on the responsibility in a number of different ways. If you think you’re ready to take the leap and run your own franchise, consider the following points first.
Can you follow the rules while still maintaining independence?
Owning a franchise poses unique challenges; you have to follow certain rules and regulations while also being expected to bring new ideas to the table. The trick is to understand what circumstances require you to follow the rules strictly and what circumstances allow you some creative freedom.
While all franchises have different levels of stringency, there is little to no room for deviation from brand guidelines, corporate identities and marketing assets. Rules are adhered to for a number of reasons, including consistency in brand messaging and efficiency in procedures. Once you decide on your franchise of choice, you will have to discuss with the franchisor what areas (if any) you can be creative in.
Are you invested in the core message of the franchise?
Getting in touch with the core message, goals and ideals of a new business can be tricky if you don’t believe in them in the first place. It’s advised not to choose a franchise just because it sounds interesting, but rather because you identify with its product or service.
If you want the venture to work, think about the type of business you’d like to own, and see what is available along these lines. If you’re interested in joining a fitness business, for example, you’re not going to invest in a cleaning services franchise, but rather in a business such as the F45 training franchise.
Do you have the funds available?
Nothing signals that you’re ready more than having the capital available to purchase a franchise. It’s always advisable to have upfront capital for the initial fees, as well as an amount saved for living costs until you start to see a return on your investment.
Starting a business always comes with a certain amount of risk. You don’t want to end up in a situation where your profits don’t come in when expected and you’re left without the necessary funds to cover operating costs. If you haven’t done so already, put together a plan to save for your required upfront fees and running costs until you break even.
Figuring out whether you are ready to open a franchise business or not relies on you being entirely honest with yourself. If you can check off the above points with the utmost certainty, you’re on your way to wisely investing in a franchise. If you can’t, you’ll at least know what you need to work on to start moving in the right direction.
Content sponsored by F45