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What to Ask Yourself Before Buying A Franchise
1/3/2013 12:00:00 AM
By: MFV Franchise Expo
Becoming a part of a franchise is an exciting opportunity and an option that continues to grow in popularity. Over half of all Americans want to be their own boss. In fact, one out of every twenty-five adults is attempting to start a business. Five million people started a business back in 1995 and a little less than forty percent of all households are involved in some way with small business. If you are ready to join the ranks of these business owners, there are a few questions to ask yourself before you get started.
Do You Have What it Takes to Own a Franchise?
Opening up a business is not easy. There is a lot of risk involved and there is a chance for failure. Are you prepared to handle both the stress and risk involved with this type of decision? From there, think about whether or not you will be able to follow someone else's guidelines and rules. Being a part of a franchise means sticking with the already established program.
Consider whether or not you have a desire to learn new skills. The decision to start a business means that you will constantly be learning new things and always striving for improvement. Can you handle always needing to learn more and always working to improve your knowledge and the knowledge of your employees? Finally, are you going to be able to keep your financial records and reports open for someone else to look at every single month?
Do You Have All the Information?
Before you take on any risks, you want to make sure that you have as much information as possible. Part of being informed includes looking into other franchises and making sure that you are choosing the right path. Once you have made your final decision, it is time to really do some research on your franchise choice. Have you checked with the International Franchise Association? Have you researched the Franchise Advisory Council?
The more information you have, the better. If you have questions, ask them. If you aren't sure that you are ready to take on the responsibility, it is okay to hesitate on your decision. Continue to research and investigate all of the details until you are comfortable making a choice.
Can You Afford to Open a Franchise?
While you might have some general idea of what it costs to open a franchise, are you sure that you have enough money? Calculate how much money you will need to cover the franchise fee, the cost of a location and all of the necessary equipment. Ask yourself how much you will need to hire employees, advertise and take care of your customers. Get an idea of exactly how much money you will need to get your franchise open.
Aside from the business end of things, do you have enough money to support yourself and your family for a year? Opening a business means that you are dedicating a majority of your time and finances to work. Make sure that you will be able to take care of your personal life.
If you feel that you have answered all of these questions positively, go ahead and get started, looking into your preferred franchise.