Business owners often try to time their investments well. Aspiring franchisees might base their buying decisions on the market or industry trends, trying to nail the “right” time to invest. Or, they might hold off until a particular season because they’ve heard summer or winter is better for business.
In reality, the market or time of year won’t tell you the best time to buy a franchise. The right time is different for every person and depends on factors like your current job, financial status and willingness to succeed. Buying a franchise is entirely based on where you’re at in life. Here’s how to tell if your right time is now.
You want a more fulfilling career path
If you’re unsatisfied with your current job, it might be the right time to buy a franchise. You may feel a strong desire to break free from a position that leaves little room for growth. Aspiring franchisees often grow tired of making money for someone else and crave the freedom to drive their own career. Some franchisees simply want to try something new. Perhaps you’ve had the same career for a while and you’re curious about the world of franchise ownership. Buying a franchise can be a welcome change, especially if you’re not fulfilled and pleased with your current occupation.
It’s probably time to buy if you’re excited about the prospect of becoming a franchise owner. You’ll know it was the right move when you don’t miss your old job!
Your finances are in a good place
Intuition isn’t the only driving factor behind franchise ownership. You’ll also need to determine whether you’re financially capable of running a successful franchise. It might not be a good time to buy if your credit score is low or you don’t have liquid capital to support yourself during the start-up phase. These factors will influence your ability to obtain franchise funding.
If you have personal capital such as cash in accounts (checking or savings for example) or a 401(k) account from a prior employer, these funds can be used to purchase a franchise. Personal capital isn’t the only way to buy a franchise. Based on your credit score and other factors, you might qualify for a small business loan. Combine a loan with your own cash, and you’re in good shape to invest in a franchise.
You possess the franchisee mindset
Buying a franchise isn’t just about finding enough money. You need to go into franchise ownership with the right mindset. A successful franchisee is comfortable taking risks and being their own boss. Franchisees are also highly independent and have the mental resolve to make it through those first few months of challenges. If you’re willing to do whatever it takes to succeed, buying a franchise could be the logical next step in your career.
Buying a franchise isn’t something you should do on a whim. It requires careful planning and the proper funds to support the business. Tenet Financial Group can assess your financial standing and loan eligibility, both of which lay the foundation for a successful franchise. Reach out to begin your journey to franchise ownership!