You’re an Entrepreneur and you want to own your own business – That’s Great!
You believe the best way to do that is to invest in a franchise – Awesome!
But before you give the Franchisor the deposit, you really need to ask yourself these five questions first – or you will hate your new business and regret your investment for the rest of your life!
- Will I be proud to own this business?
The idea of owning your own business is seductive – and the possibility of making lots of money is attractive too! But will you be proud to tell your family and friends that you own it? There are lots of ways to make a living, and not all of them are necessarily things you’d want your family and friends to know about.
Everyone is different, naturally, and we all have our own moral compass. Do something you feel great about, something you want the entire world to know you’re doing. If you’re not passionate about the Franchisor’s product or service before you buy the franchise, think how you’ll feel when you’ve paid (possibly) hundreds of thousands of dollars for the right to sell those products or services.
You should want to scream at the top of your lungs – This is mine! And you should mean it.
- Who are your real competitors?
Competition these days comes from all quarters. In the internet age competition no longer simply comes in the form of bricks-and-mortar, and you cannot simply drive around a neighbourhood to scope out rival locations. There’s online, outsourcing, home business, and the ever-increasing reach of the big box stores – and then there are the really big boys – Walmart, Home Depot, MacDonalds, Tim Hortons.
Don’t just look at the little niche your franchise has settled into. Ten years ago McDonalds didn’t sell much coffee. Now coffee is one of its fastest growing product lines. Opening up a café? Consider those golden arches.
And regardless of what Franchise you’re considering, it’s worth while to stroll through a Walmart. Do they offer what you’re thinking of selling?
Don’t be intimidated. Be informed.
- Do I want to spend the next ten years doing this?
Most franchise entrepreneurs love to think about success – owning five, ten, fifteen locations – and that’s great. If you don’t hope, you never find what is beyond your hopes
But there’s that old (annoying) reality: it always boils down to work. Do you see yourself working in the franchise’s line of work in ten years’ time, doing it day after day, year after year? If that idea fires you up, then you’re headed in the right direction. Go for it.
Dream big: but you’d better love the dream.
- Do I really like being responsible for others?
Time to get introspective.
You know yourself. Do you really like to be the person everyone relies on? This is your last chance to think this through. Yes, the franchisor will be there to help you; that’s one of the major reasons for investing in a franchise. But ultimately, you have to drive the success yourself. You will be the owner of the franchise. You will enjoy the fruits of your efforts; and so will you be responsible for any financial losses.
There’s no shame in admitting you want to work for someone else.
- Do you like the sound of it?
This is the gut check.
Or call it the smell test.
How does the sound of the franchise strike you? Do you like the culture around the franchise? Don’t give it too much thought – just feel it. Picture yourself in the franchise – for real. Put on the uniform. Get behind the desk. Imagine yourself serving a customer and asking them if they’d like your product or service. Pretend that you’re doing the work right now.
Do you like what you see? Does it feel right?
If it does – don’t let your fears stand in your way.
But trust yourself, too. Don’t let yourself get carried away by the idea. Some entrepreneurs continue with a Franchise simply because they’ve told people about it and don’t want to look foolish by backing out.
Maybe you will look a little silly – but you won’t have thrown away all that money and wasted all that time and energy – or even worse, you won’t be trapped doing something you don’t enjoy.
Five little questions can make all the difference in your life. Certainly, this is not an exhaustive list, and there are literally dozens of additional issues an entrepreneur will have to deal with before committing to a particular franchise. These five questions are a good place to start, however.
BOOM Breakfast & Co. is a GTA-based franchisor in the Breakfast and Lunch Restaurant sector. Check BOOM out at www.boombreakfast.com