Being your own boss, having a flexible schedule, and turning a good profit are all excellent reasons why buying into a franchise can be a great business (and personal) opportunity. However, it’s not always easy and truthfully, it’s not for everyone.
There are certain personality traits and circumstances that lend themselves to franchise success. To see if you meet the prerequisites, ask yourself these four questions.
1- Am I a Rule Follower?
Yes, you’ll be your own boss…sort of. Although you’ll be in charge of day-to-day business operations and hiring your own employees, every franchisee signs contracts with their franchisor guaranteeing that certain (and many) rules will be followed. Consistency is key when it comes to a successful franchise system which means you will not be able to change things or explore your own ideas. You will be using their playbook and following their rules.
2- Do I Work Well in a Team Environment?
You will be working with a large team of players, both above you and below. You will be interacting with people a lot so you need to have the type of personality that enjoys it. Having experience managing a team is also very important as is the willingness to work hard, support others, and ensure everyone succeeds together.
3- Do I Have the Financial Means?
Opening a franchise takes money. Let’s clarify…it takes a LOT of money. Undercapitalization is one of the major causes of business failure. You will have start-up costs (business licences, inventory, equipment, etc.), professional fees, insurance, land, rent, utilities, employee salaries, and promotional expenses. You can count on your business taking AT LEAST a year to turn a profit. Make sure you and your family can afford the wait.
4- Have I Found the Right Opportunity?
Make sure you’ve found the franchise opportunity that best encompasses the following attributes:
- The business is well known and successful
- Their philosophy and mission aligns with your own values and priorities
- The products and services interest you
- The location is convenient for you
- You agree with the terms of the contract
- The staff is friendly and helpful
- The franchise company offers ongoing support
If you have answered yes to all of the above questions, you’ve passed the test! With thorough preparation and vigilant hard work, you can become a successful franchise owner.
For information on a great franchise opportunity, visit Bruges Waffles & Frites!