When you’re a part of a family unit, every major financial and professional decision you make has an impact on others. That’s especially true if you’re married and have children to support.
Purchasing a franchise is a big investment and a massive career shift, especially if you intend to leave your previous job behind.
We recommend that you discuss the option with your partner and family members before you make that commitment. Your family members will express some scepticism and reluctance, but if you answer their questions well, they will respond positively. You can expect the questions mentioned below from them:
This is probably the first question your partner, parents, and other members of your family will ask. A franchise would probably require a few hundred thousand dollars’ worth of investment and that can have a significant impact on family’s finances for the upcoming months, if not years.
You should explain how much money you intend to spend, how much financial assistance you can expect from organisations and institutions, and other such plans. You should let your partner know if you intend to re-mortgage your home or take other such steps that might affect your family.
Running a franchise is similar to running a business. It requires commitment, hard work, and it can be exhausting and backbreaking work. Your children might not be able to adapt to the change as easily as you want them to. They need attention; but as a franchisee, you will have less time and energy on your hands. If your child is old enough, you should consider discussing the change with them. If they’re too young, try schedule in some time every day and dedicate your full attention on them.
If you intend to own the franchise for a long time, you need to consider the parent company and the industry carefully. Are you willing to spend long hours and several years managing the franchise and working in the same industry? You need to determine whether you and your family can remain committed to and enthusiastic about their venture until you retire or are willing to take up another career. Even a successful franchise requires a lot of time and commitment. The pressure won’t ease off and you’ll have to keep growing in a competitive market to stay ahead of the game.
With so much at stake, your partner and family members will be concerned about the risk of failure. If your franchise fails, do you have a backup plan to ensure your family doesn’t suffer the consequences? Would you still be able to provide for your children and maintain the family home if the business collapses?
Most entrepreneurs don’t want to consider failure but it’s a good idea to have a backup plan in case something goes wrong. You should prepare a business plan with your family and make sure your personal and business finances stay separate. That will help you ensure that you have some savings to fall back on if your business doesn’t make the profits you projected.
If you want to know more about buying a franchise business or want some advice, 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