Some people nurture a dream to own a business. So when the chance to own a franchise opens up, they like to latch on to it. A franchise is a valuable opportunity to own a business without all the risks that a new business involves. However, running a business is not everyone’s cup of tea.
Before you decide to invest your money in this business, you need to ask yourself a few questions and answer them honestly to judge your preparedness to embark on this journey. Here are some questions you should be asking yourself before starting a franchise.
Business ownership does not offer the safety net that full-time employment offers. If you don’t like taking risks, you are not a business owner material. As a latter, you do not enjoy paid sick leave, perks, and a pay packet at the end of the month. What you have is a risk-reward opportunity to be your boss, enjoy financial independence, self-esteem, and the thrill of owning a business. The decision to be an employee or a businessman vis-à-vis your likes, dislikes, and ability is entirely yours.
To own a business is to own direct responsibility for every one of your decisions, actions, and results. Though you are your boss, there are no fixed working hours. This is a different ball game than being an employee with fixed office hours and the freedom to go home at almost the same time every day. Business means commitment and sacrifices to achieve success. Are you ready to give your best to it?
The setup stage is crucial for a franchise business, during which your physical limits to work will be on the test. You need to be emotionally strong to bear the stress in the short and long term. At such times, you need a strong support network of business people who understand the sacrifices you make to succeed in your business. Is your family or your partner supportive? Are they willing to look after the other commitments you have and allow you the time you need to attend to your business?
Franchising means a lot of freedom to achieve your goals, but you are answerable to the franchisor and play the role of a team leader as well. You and your franchisor share the same goal and it benefits you to be a team player. Check whether you are more of a loner because if you are, a franchise business may not be for you.
Business involves many ifs and buts. For instance, if you and/or your partner are unable to work for a certain period, do you have a contingency plan to keep the business running till you resume? Uncertainties and unexpected happenings are part of every business, and a businessman needs to face it with a ready back-up plan.
Finance is the blood of business. Do you have enough funds to buy a franchise? Is your bank willing to lend you money? Are your family and friends ready to invest in your venture?
If you want to know more, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form, and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435