How to know when you're ready to own a franchise

Before you decide to own a franchise, it is important to do your homework. Not only do you need to research the financial investment required to get the business up and running, but you also need to consider the personal investment you will need to make in order to be successful. I can't tell you how many franchise owners I've talked to say they "failed" because they didn't take their personal life and other commitments into consideration before becoming a franchise owner.

Are you prepared to put in the long hours required to get the business off the ground? Do you have the drive and determination to make your franchise a success? Taking the time to answer these questions honestly will help you determine if owning a franchise is the right decision for you.

Career

A career in franchise ownership is challenging and rewarding. Owning a franchise can be a great way to achieve your career goals, but it's not right for everyone. Before you decide to invest in a franchise, it's important to understand if you're at a point in your career where it makes sense. For example, if you're just starting your career, you may not have the financial stability or business experience needed to run a franchise successfully. On the other hand, if you're burnt out in your current industry and looking to make a change to a career that gives you more free time, you may not have the time or energy that's needed to grow a franchise. If you're considering franchising, take the time to carefully assess your career goals and consider if it's the right move for you.

Finances

Before you leap franchise ownership, it’s important to understand your financial situation. Take a close look at all your liquid assets, including cash, stocks, and bonds. Determine how much of that you’re comfortable using to purchase a franchise. Keep in mind that a franchise is a long-term investment, so you’ll need to have a solid plan in place for how you’ll finance the initial purchase and ongoing costs. If you don’t have the necessary funds on hand, you may need to consider taking out a loan or finding investors. Once you have a clear understanding of your budget, you can start investigating which franchise opportunities are right for you.

Time

One of the most important factors to consider is how much time you can realistically dedicate to your franchise. Getting a new business off the ground takes a lot of work, and you need to be prepared to put in the long hours required to make it a success. If you're not sure you're up for the challenge, it might be better to wait until you're ready to commit the time and energy required to make your franchise a success. However, if you're prepared to put in the hard work, owning a franchise can be a very rewarding experience.

Personal Life

Before you take the plunge and purchase a franchise, it's important to sit down with your family and talk about the commitment you're about to make. Franchises require a lot of time and energy to get off the ground, and that means you won't have as much time for your personal life. It's important to have the support of your loved ones as you embark on this exciting new venture. Do you have the emotional support from a community to help you when times are tough? These are important topics to think through before you take the plunge.

Final Thoughts

This program will help you get clarity on these questions and prepare you for the road ahead. Franchise ownership is similar to starting any new business from scratch and it's an investment. To assess the risk associated with the investment, you not only have to evaluate the franchise chain you're operating, but also yourself as the operator.

A helpful exercise is to zoom out and ask yourself: If you were an investor, would you invest in the franchise you're running? Keep the following infographic in mind as we continue in the program. Your goal is to say 'Yes' to 100% of the gut check prompts below before embarking on this journey.