I’m finding that a lot of would-be franchise owners have unrealistic expectations. Some of these expectations have to do with the business model of franchising itself. The “Business in a Box” mentality.
In addition, a lot of today’s franchise buyers are expecting to get excited about the franchise opportunities they find. Like really excited.
Finally, some of my clients have unrealistic income expectations. Especially when it comes to replacing their incomes quickly. Let’s discuss all three.
The Business-in-a-Box Mentality
When you’re looking for a franchise to own, part of the problem is you may expect almost everything to be set up for you. That’s because you’ve been told that a franchise business is a “Business-in-a- box.”
Sorry. There’s no such thing. Read
Getting Excited About A Franchise Opportunity
As you look around for a franchise to own, is it possible you’ll find one that really excites you? Sure. It’s possible.
That said, I only remember a few times (during the past 18 years) that my clients have been truly excited about the franchises they were investigating.
Now, I’m not talking about the excitement my clients have as they go though the process. Almost everyone gets excited about potentially becoming their own bosses.
On the contrary, I’m referring to a handful of clients who have enthusiastically told me in one way or another that they “found the perfect franchise!” As in, “Joel…Joel…I found a franchise that will be huge in my area, and I know I can make it a big success! It’s perfect!”
Again, it’s possible you’ll find a franchise or two that excites you right away. But it’s not likely.
Instead, what usually happens (with my clients) is they request information from several franchises that seem interesting-and match their skill sets and their dominant personal traits, and they get excited* about the opportunities when they learn more about them.
*This “excitement” isn’t normally of the “jumping up and down” variety.
Instead it’s somewhat subdued until needed facts are gathered through proper research techniques.
To summarize, you may not get excited (right away) about a franchise until you have enough information-and enough facts to warrant your excitement.
Are you comfortable with that?
Are Your Income Expectations Realistic?
- How much do you think you’ll make as the owner of a franchise?
- How long do you feel it will take you to make money?
When it comes to franchisee income, expectations matter.
For example, if you’re coming off a successful career as a middle manager in corporate America, and your annual income has hovered around $200,000, it’s reasonable to want to make around the same money if you became a franchise owner. But your expectation is based on a “want” and nothing else. In other words, you want to make $200,000 a year. Make sense?
But what if you found out (after asking the income questions provided in my franchise research guide), that it will take 5-6 years to make that kind of money as the owner of the franchise you’re investigating? What are you going to do? Are you going to give up on that franchise opportunity?
Moreover, what if you can’t find any franchise opportunities you like that can eventually replace your income? Will you stop looking for a franchise and start hunting for a job?
The Bottom Line?
If you’re looking to buy a franchise, you need to ask yourself if your expectations are realistic?
Additionally, take a hard look at your “why.”
Why do you want to become the owner of a franchise?
Is it because you like the idea of owning a business with a proven model?
Are you looking to buy a franchise because you want to do something that excites you?
Are you hoping to find a franchise opportunity that can replace your income?
All of the above?
Some of the above?
One of the above?
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