Buying a franchise or business opportunity is a big step and one that should be done with careful consideration. Here are a few tips to help you in your quest for the business ownership!
- Know Yourself - Personal Inventory! Being a franchise owner can be immensely satisfying, but it also is a lot of hard work! When looking for a franchise or business to buy, do a "personal inventory" - take out a blank piece of paper and write down types of things you enjoy doing, your interests, your skills, and your weaknesses. You will want to carefully match these up with different franchise opportunities to find the best fit. For example, if you have a background in education and love working with kids, then perhaps a tutoring related franchise could be a good fit. If you love helping people and have a passion for home improvement, maybe owning a home services, hardware store, or handyman franchise would be a good fit.
- Do Your Homework. As the old saying goes -- "Measure three times and cut once!" Buying a business is a big, big step. So, be patient, gather lots of information, and think through all the options before buying a particular franchise or business for sale. Compare and contrast many different franchises, request additional information from each, take good notes, and think about the pros and cons of each. When talking to the franchise or business opportunity owners, ask for names of current owners that you can contact to ask them about their experiences. Remember, there are NO dumb questions!! That is absolutely true.
- Be Prepared. Make sure you have a good understanding of what it will take to be successful. The franchise company and your conversation with their current franchisees should give you a very good understanding of what it will take to be successful. Understand the work hours, time commitment, skills needed, and plan accordingly. The last thing you want to do is buy a business and then find yourself "treading water" two months later. If you have a firm and realistic idea of what it will take to be a success and can get comfortable with that, then you should be good!
- Do the Math. This goes along with # 3 above, make sure you have a very good understanding of what your expenses will look like, where your revenue streams will come from, what drives sales and increases revenue, set realistic expectations, and get comfortable with the numbers. Have a friend of yours who is good at numbers gut check your work -- have you accounted for all the expenses. Talk to business owners about their expenses -- you may find that you have forgotten to include some! "No surprises" is the name of the game when you are purchasing your first franchise or business opportunity.
We hope these tips are helpful. Buying a franchise, business opportunity, or business for sale will require thorough due diligence and careful thought. However, your hard work upfront will ensure you purchase a franchise business that is right for you and will increase your chances of success! We wish you all the best!