Is Franchising Right For You?

Written by Whitaker Stacey

Perhaps you have always wanted to start your own business, or maybe you are just always on the lookout for a good investment. Either way, there are some things you should consider before stepping into the world of franchising. There’s no doubt that it’s an exciting world, but it’s not for everyone. The following are some questions that if you take the time to answer honestly, will help you determine whether you’re a good candidate for purchasing and operating your own small business franchise.

Do you want to truly be your own boss?

Many people see purchasing a franchise as a quick and easy way to become their own boss. There is some degree of truth to this perspective, but with a franchise, you’re not going to be the only one in charge. No, you won’t have a boss looking over your shoulder every day, but you will still be answering to someone, and you’ll be following someone else’s business model. There are certainly some advantages to this situation, but if you’re the type that needs to be in control or call all the shots, then franchising may not be for you. You may want to consider using your entrepreneurial spirit to start your very own original business instead.

Are you willing to wait?

Patience is a virtue, especially for franchisees. If you’re looking into purchasing a franchise to make a quick buck, look elsewhere. While you may very well be in a good position to make some significant profit, it will not happen overnight. You’ll need some time to build your customer base and reputation, and you’ll also have to reimburse yourself for the start-up costs of opening your business before you can really begin making a profit. This process could take several years, so if you’re the patient type, you may make a good franchisee. On the other hand, if you often give up on projects before they come to fruition, then franchising may not be for you.

Are you a risk-taker?

Although any time you put your time and money on the line, there are risks involved, opening a franchise is not near as risky as going it alone. By the very definition of the word “franchise,” it’s clear that the business has been around the block a few times, has a record of success, and a solid business plan. If you are a true risk-seeker at heart, you might find the world of franchising a bit too predictable. If you have a little money to throw around and want to take a real risk, you may find a start-up to be more your speed.

Are you a people person?

Although not all franchises require you to be a daily part of the operation, you will be more likely to succeed if you have some face time with your clientele. Therefore, a portion of your profit margin is dependent upon how charismatic you are. Do you get along with others? Do people find you intimidating, or do you have a calming effect on them? These are questions you should consider before becoming the poster child for a franchise.

Are you dedicated?

As the owner and operator of a franchise, it will be your responsibility to set goals for yourself, your business, and your employees. Setting goals is one thing, but actually seeing results is something else entirely and will take a substantial amount of dedication. If you find yourself starting projects and never finishing them, or changing your mind with the wind, then franchising may not be a good fit for you. On the other hand, if you are known for your stubborn persistence and have the staying power to stick with a project until you see it fully realized, then you may be a good candidate for opening your own franchise.

Conclusion

Congratulations! You passed the test—as long as you answered the questions as honestly as possible that is. There truly are no right or wrong answers here, but if you know yourself a little better as a result of pondering these questions, then you’ve put yourself in a better position to make the right decision as to whether or not to become a franchisee. If you’ve determined that franchising is not the best fit, don’t despair. There are plenty of other ways to make a difference or a profit, or perhaps both.

References

Is a Franchise Right for Me? Take a Self-Test. Franchise Prospector. Retrieved from http://www.franchiseprospector.com/franchising/franchisee-test.php.
Top 10 Reasons to Buy a Franchise. Entrepreneur. Retrieved from http://www.entrepreneur.com/franchises/buyingafranchisecoachjeffelgin/article188452.html#.