If 2013 is going to be the year that you go into business for yourself, and you want to do it right, make a commitment right now…today, to follow the suggestions that I’m going to lay out for you.
If you want to buy a franchise in 2013 and come out a winner, do the following;
1. Get to know yourself.
Dig deep…now. Make sure that your personal traits are a match out for a business model that requires you to follow a system. Make sure that you know what you’re really good at. Then make sure that you focus your energy on franchises that will allow you to use your top skills.
2. Make sure that you understand franchising.
Do you know what franchising is? Really? Do you know why it works so well? Find out here.
3. Watch Fiddler On The Roof.
Become a great matchmaker-matchmaker. Seriously, when you look for a franchise business opportunity, make sure that you really are matching your top skills to franchise opportunities that allow you to use them to your advantage.
The bottom line here; buy a franchise that fits you.
4. Make sure to do the math.
Don’t set yourself up for disappointment. Getting excited about a particular franchise-only to find out that it’s way out of reach for you financially, would really suck.
You need to figure out a budget. And, you need to know your start-up costs.
Sit down at your kitchen table, and take out a pen and paper. Like this.
Starting Costs Calculator
5. Make sure you have choices.
Don’t fall into the trap of only requesting information from one company.
The reason; what if the franchise you’ve been focusing on turns out to be a dog. In other words, what if-during your research, you find out that none of the franchisees you’ve talked to are making money? What if the franchisees feel that the marketing department is doing a poor job online?
If you’re looking into a franchise that’s in a highly competitive sector, you really need to have more than one opportunity in mind.
6. Make a commitment to learn how to do great franchise company research.
7. Make sure you plan ahead for your loan.
The time to investigate franchise loan options is now. If you don’t know how you’re going to finance your franchise ahead of time, you’ll end up scrambling to figure it out really late in the game. And, that could slow you down.
There are several loan options available these days; some are very traditional, while some are a bit more cutting-edge. Don’t discount any of them until you find out all the facts. If that means ignoring the advice of your accountant…or that college friend who’s an investment banker, so be it. This is your money…your life. Get the facts. Then decide.
8. Make sure you have a plan.
Before you fill out a formal small business loan application, you need to have a formal business plan.
Have you ever written a business plan? Do you know important business plans are these days?
If you want to significantly increase your chances of getting a loan approved, take the time to do one.
My friend, Tim Berry, sells the top-selling business plan software in the world. It even comes with a 60-day money back guarantee.
A franchise attorney.
You may be about to invest $250,000 or so into a franchise business.
Make a commitment right now to invest some money to protect your interests. I don’t care if your franchise development representative tells you that, “You may be wasting you money by using an attorney-because nothing in the franchise agreement is negotiable.” I still want you to engage the services of a knowledgeable franchise attorney. You’ll sleep better at night, trust me.
Feel free to contact me if you’d like the names of some good franchise attorneys.
10. Make sure you’re convinced.
Before you sign on the dotted line, and send your franchise fee check in, make sure that you’re emotions are in check.
You may be coming out of a bad situation…a corporate downsizing, for instance. You may still be angry about it. Maybe you’re working for an idiot, and just want out.
Whatever your reason is for wanting to become the owner of a franchise, make sure that you’ve gathered the facts needed to make this decision. It’s one thing to accept a job, only to find out that it’s not really what you signed up for. You can always pack up and leave. And, find a new job.
But, when you buy a franchise, it’s a different story.
If you buy a franchise that sucks, you can’t just pack your bags and go find another one. That’s because you’re locked into a 5-10 year contract. A legal contract. And, you’ve invested your own money-plus you have a business loan. And, you may have signed a commercial lease.
Getting out of a franchise contract is next to impossible.
If you want to avoid the pain that would be involved in trying to fix a bad mistake, (like choosing a lousy franchise) make a commitment to do the things I’ve outlined.
You’ll dramatically increase your odds of success.
And, come out a winner.
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