Franchising sounds like an easier path to becoming an entrepreneur. As a franchisee, you will have the benefit of running an already established brand that has its own loyal following. Moreover, everything — from the training of the employees to the marketing — has all been figured out for you and the only thing you need to do is to follow.
Although there is always a risk of failure in any kind of business, franchising seems to be less of a gamble, especially for inexperienced business owners. With all the franchising options available to you, how are you going to choose which one suits you the most? Here is a guide that may help you.
What Are You Good At?
A coffee shop franchise might be what is hot in your neighborhood right now, but how much do you know about running a cafe? Instead of just jumping onto whatever seems to be popular, you might benefit from pursuing a business that is in line with your interests and skills.
For example, look into cleaning franchise opportunities if that is something that you are knowledgeable about or have experience in. You can either specialize in commercial cleaning for companies and other businesses or home cleaning for individual customers. Franchising does not require you to be an expert, but a bit of prior experience will definitely help. It will be easier for you to identify what you need and to make major decisions that will directly impact your profit.
What Do You Enjoy Doing?
Running a business is still, at the end of the day, work. Instead of choosing a venture that is popular, enter a field or industry that actually gets you excited.
Do you like to organize parties? Do you have a gift for landscaping? Make a list of activities that you like to do. Identify which ones you like doing the most and you likely will enjoy doing for years to come. Even things that you like but have nothing to do with running a business would help you decide what venture to pursue. Many people have made a fortune after discovering an untapped market niche.
In contrast, list down everything that you do not like doing. This will help you cross out potential ventures and give you a much smaller pool of options. For example, do you dislike pets? A dog-walking franchise might not be for you.
How Much Money Can You Invest?
Once you have an idea which franchise opportunities suit you best, then it is time to consider your personal finances. Like any business, you will not be profitable immediately after you have opened your doors to the public.
You should be prepared to live off of your savings for several months. Although most banks will trust those who are opening a franchise rather than a new business, you still will be subjected to a review of your finances. The lender will look at your net worth and credit history to decide whether you can be trusted with the money. You still have to provide collateral before you are allowed to get a loan.
Before jumping onto any venture, whether a business or a job, weigh your options and make sure that it is really something that you want. You will have to invest a lot of your time, energy, and money to achieve some form of success. It has to be worth it.