If you’re someone who dreams of owning your own business, purchasing a franchise is a great path to follow. There are a ton of freedoms that come with being a franchise owner. You can be your own boss, grow your wealth with lots of control and ultimately live the American dream of being a successful business owner—all while benefitting from the established name and business structure that comes with a franchise. However, you first need to select one franchise out of a pool of hundreds.
There are franchise options for everyone—from retail/storefront to home-based to mobile service-based. Because there are so many choices, many aspiring business owners aren’t sure where to start. How do you know which franchise is right? By taking time to consider a few key factors, you can narrow down your franchising options and find the perfect business model for you.
Industry experience and interest
The first things to consider as you explore franchise options are your own skillset and interests. Are you interested in doing business in a particular industry, such as food service or cosmetology? Do you have prior experience in a particular business realm? What type of business excites you the most?
Not all franchises require their franchisees to have prior industry experience, but having a firm understanding of a given business sector can give you an advantage when it comes to growing your franchise. At a minimum, you should have interest in the industry you’ll be operating in because you’ll have a personal drive to make your business the best it can be.
Franchises can offer different things to franchise owners. Similarly, they can vary in what they require to operate. When exploring your franchise options, consider your business goals. Will this business be your main source of income? Do you want the business to be sustainable without requiring a lot of involvement from you (generally referred to as an absentee or semi-absentee franchise)? Or, are you looking to take a more hands-on and full-time approach as an owner?
With your goals more clearly defined, look for franchises that give you those opportunities. Certain businesses might have much higher margins than others but require more hands-on management. Others might allow you to bring in a steady revenue stream while giving you more time at home.
Budget plays a major role in franchise selection. The startup costs for franchises can vary significantly, making it important to understand which franchise opportunities fit within your budget and which do not.
It may be a smart business move to invest in a franchise with high start-up costs if that business can offer very high returns. However, you should also be realistic about how much start-up funding is available to you before you dive in. Be sure to explore funding options before you make your selection, so you aren’t ruling out any options too quickly.
Demand and competition
Most franchise owners want to maintain their business close to home. Take stock of the businesses available in your area. Is there a particular business type that residents could benefit from? Are there too many of a particular business?
Many franchises have limits to how many businesses can operate in a particular territory, so some options might be off the table for you from the start. Choosing a franchise with high market opportunity and low competition in your region will usually bring you the most success.
Find and kickstart your franchise
If you’re interested in purchasing a franchise but aren’t sure where to begin, visiting trade shows or connecting with franchise consultants can help you explore your options. There are several virtual tradeshow opportunities in July, including The Great American Franchise Expo on July 9 and July 23. Click here to register to attend from the comfort of home, and gain access to exploratory information from dozens of franchise brands.
You can also utilize the services of a franchise broker or consultant. These men and women specialize in helping franchise buyers review their goals and objectives for owning a franchise and then they help match buyers with franchises that tie-in to their goals and objectives. Their services are NO-COST to you as a franchise buyer. Tenet Financial Group works with hundreds of franchise consultants and brokers and can connect you with someone immediately.
There’s lots of freedom in franchise ownership, and now is a great time to take control of your destiny and determine how you want your future career path to look. Tenet Financial Group has nine combined decades of franchise funding experience, and we can help you review all of the financial implications of funding your franchise business from the ground up. Give us a call to connect with a Senior Consultant to discuss your options: (888) 901-3335, option 9, or send us an email to get connected digitally.