That’s what you want. You want to find a profitable franchise opportunity. You’re willing to risk some of your cash-to do it…to be your own boss. You’re even willing to potentially take heat from your family if things don’t quite work out. And, you’re willing to take a short-term hit to your income in order to potentially build equity in a business you can call your own. You have the courage of a lion. You have more courage than most people.
I think it’s great, and I’d like to help you become a successful franchise owner. A franchise business owner who makes money.
A lot of money.
The ABC’s Of Finding A Franchise You Can Make Stacks Of Cash Owning
I really do admire you. Not only for your courage, but for your laser-focused goal of finding a franchise that you can eventually make lots of money owning.
Want some help?
The best place to start your search for a franchise you can make lots of cash owning is at the beginning.
You need to assess where you’re at, financially. Here’s how:
Gather every single document pertaining to your finances. Include your mortgage statement, auto loan statements, credit card statements…anything that’s debt-related. Those are your liabilities.
Next, gather things like mutual fund/stock statements, IRA and/or 401 (k) statements, and anything else you can add to the asset column. (Include automobiles, equity in your home, furnishings, jewelry-everything that’s worth money.)
Tip: Plan on spending a few hours gathering your financial information.
Once you have everything in front of you, you’re ready for the next step.
Calculating Your Net Worth
You’re going to need to do a net worth statement…for two reasons.
The first reason: Franchisors need to have it.
Today’s franchisors want (and need) to find out if you’re financially qualified for their franchise opportunity early in the process. Can you blame them?
Imagine what it would be like to work in the franchise development department for a company like Subway® or Burger King® where dozens (easily) of email requests and phone calls requesting franchise information are constantly coming in 7 days a week. Wouldn’t you want a way to weed out interested parties who weren’t financially qualified? I know I would! That’s why financial requirements are prominently displayed on most franchise websites. (They’re usually displayed in the form of a minimum net worth and/or a minimum startup capital requirement.) That’s why it’s crucial to have your net worth statement instantly accessible.
(If you haven’t gathered all of your financial information yet, make sure you bookmark the link above so you can access my free net worth calculator when you’re ready.)
Once you have your net worth statement in front of you (you’ll be able to print it out when you use my free tool) you’ll be able to send it to franchisors.
The second reason you need to calculate your net worth is to determine exactly where you stand financially.
Tip: Even if you’re just “interested” in franchise ownership…in other words, if you’re not sure (yet) if owning a franchise is the right direction to take, it wouldn’t hurt (too much) to see where you’re at financially. So, take advantage of my free net worth calculator even if you decide not to go down the franchising path.
If a you are ready to find-and maybe even buy a franchise you can make money owning, your current net worth serves as a starting point to set up your financial goals.
The bottom line: Assess your financial situation so you know where you stand; only then can figure out what franchise opportunities you qualify for. And, once you find a few franchise opportunities you qualify for, you can start digging into them to find out which ones you can make lots of money owning.
You’re going to have figure out how to balance the excitement you have for what you may be about to do with the reality of franchising.
For example, a franchise business generally doesn’t include a money-back guarantee. In most cases, there’s nothing in the franchise agreement (contract) that states you’ll be able to get your money back if things don’t quite work out. So, as excited as you may be, make sure you don’t set unrealistic expectations. In other words, if you choose the wrong franchise, and/or you don’t do thorough research, you may lose your money.
FYI: In some cases, guarantees are actually offered, like the ones that come with these franchise opportunities, but it’s not the norm.
Another reality is that despite what you may have read or heard, buying a franchise businesses is not less risky than buying an independent business. For proof, read this. It gets even better…
If you decide to work with a franchise consultant (a franchise broker) you’re probably going to hear that the franchise opportunities they offer are “pre-screened.” That’s great, but what exactly does pre-screened mean?
Does it mean if a consultant shows you one of their pre-screened franchise opportunities-and you end up actually buying one of them, that they’ll stand behind it
if things don’t work out for you if you fail and lose your money?
Answer: Of course they won’t stand behind one of their pre-screened franchises. What? What!!!!? C’mon: Do you really think a franchise consultant is going to help you out of a jam? Do you really think your consultant is going to write you a check for the amount of your upfront investment if you have to close your franchise business down?
To get a better perspective of what a pre-screened franchise is, read this article about pre-screened franchise opportunities. It’s an important one-especially if you’re thinking of working with a franchise consultant.
The bottom line: Pre-screened franchise opportunities presented by franchise consultants can be just as risky as franchise opportunities you find on your own.
The Excitement Part
This should be an exciting time for you. Heck, just the thought of not having a boss to report to is probably excitement enough. Maybe even this exciting:
I know…I know. But, seriously…
I want you to be excited. I want you to have fun as you search for a money-making franchise. Just be balanced in your approach.
For example, you may find what you think is the perfect franchise to own. A franchise opportunity that looks like a winner. One that matches your strengths. Even your budget. One that even “feels” right. Until you start doing research on it. Good research. Franchise research that includes my suggestion of typing the name of the franchise opportunity into Google or Yahoo! followed by the word “lawsuit” or “scam.”
Which leads to some pretty negative…pretty scary information. Information you found out was true, because you asked a few of the franchisees about it. And, you were so excited! So, now what?
You dust yourself off, that’s what. And, you start searching for another franchise that meets your criteria. Another franchise opportunity that can potentially put lots of cash into your pocket and eventually into your bank account.
Remain balanced in your approach. Stay in the middle. Don’t allow your emotions to get too high or too low. But, focus on the $$$$ goal.
Are you willing to do whatever it takes* to become the owner of a business?
*Whatever it takes should never include doing something illegal or taking a huge financial risk.
How long did it take you to come up with your answer?
If it took you 30+ seconds to answer that question, you may not be quite ready to pull the trigger on a franchise. It’s not a bad thing; it just takes some people longer to get to a place where they’re really ready to take on some risk in order to be their own boss. Maybe you just need more information!
If it took you between 15-30 seconds to answer the question in bold above, you’re pretty ready to do this. It’s not a 100% ready, but it’s pretty darn close.
If you answered the question in under 15 seconds, you are there.
So, what are you willing to do to buy a franchise…to become your own boss?
Here is a list of things you need to make a commitment to do:
1. Involve your family
This is a big decision. Get them involved early in the process. Once they’re involved, keep them informed of your progress. They’ll be much more willing to stand behind you if they know what you’re doing!
2. Be open to your finance options
There are lots of ways to finance a franchise business these days. You can go the traditional, and apply for an SBA loan. A large number of franchise buyers go that route. You can also do something that most accountants prefer you don’t do, and start your new franchise business with money you already have. You can also call your rich aunt or uncle and ask for money.
3. Spend money when needed
It’s true: You have to spend money to make money.
Free is great…we all love free stuff. But, most of the time, the things that are offered for free aren’t the things that will get you there. To get “there” make a commitment-right now, to invest in things that will help you become an Owner. For example…
You have to check out this tool from IdealSpot. I’m an affiliate for Bryan. If you’ve been following me for any period of time, you know how picky I am when it comes to people and companies I work with. I only endorse things I believe in. And, I only work with people/companies with a good reputation.
A few weeks before you anticipate making your yes or no decision on the franchise (s) you’ve been diligently investigating, you need to find and hire a franchise attorney. Not a business attorney. Not a general attorney. A franchise attorney. Drop me an email if you’d like a personal referral to some of the top franchise attorneys in the nation. (To Joel at thefranchiseking dot com)
It doesn’t matter if you’re going to get a small business loan for your franchise or not; you still need to write a formal business plan. Period. Click the banner below to see why and to get a great deal on the best-selling business plan software in the world.
You know about the massive growth of online learning, right?
“E-learning is a quickly growing industry that is simultaneously moving in different directions. Skill-specific programs are being valued in the billions, while at the same time inclusive massive open online courses are filling with hundreds of thousands of students curious to learn without necessarily getting any credit.”
There are plenty of online business courses available for would-be business owners, today. You can take courses in accounting, bookkeeping, inventory management and more. You can even take a course on social media marketing, so you can get a
good great understanding of one of the ways you’ll be marketing your new franchise business. (With your franchisors’ help)
Online learning is a powerful way to learn new things anytime, anywhere. (With a computer or Smartphone and an internet connection.)
Take The Ultimate Online Franchise Course, for instance. (Really; you should take it!)
It’s chock-full (8 Modules and 23 Lessons) of detailed, easy-to-follow information that is easy to learn. Part of what makes it so easy to learn from is that it’s not a college-level style course. There are no tests; you won’t be graded. That fact alone should please most. It’s not a text-only, boring course, either. I’ve included several brief franchise videos (new ones are added all the time) along with medium-length audio files to keep you interested and engaged.
FYI: All of the information in my course, combined, will teach you exactly how to find, research, and buy a money-making franchise business.
Another commitment you should make to yourself (right now) is to sit down (face to face or via phone/Skype) with a franchise professional.
Scratch that. Sit down with an unbiased franchise professional. Someone who’s not offering to work with you for free in order to “help you become a franchise owner.” (Which really means someone will try to match you up with a franchise opportunity they represent so they can get paid a big commission.)
Important: You’ll be signing a 35-page franchise contract that locks you in for 5-20 years. You’ll also be putting a lot of money on the line. Investing in an hour or so with someone who’s well-versed in franchising and who can go over everything to make sure you’ve left no stone unturned in your research is money well-spent.
Super-Important: You may be about to buy a $200,000 franchise business. Don’t sweat investing a few hundred dollars to make sure you’ve done absolutely everything you can to lower your risk and increase your chances of success as the proud owner of a franchise business.
I’m rooting for you. I want to see you make stacks of cash if you end up buying a franchise.
How to Use a Franchise Opportunity Website
The 10 Commandments of Franchise Research
What You Need To Know About Franchise Consultants/Brokers