The allure of making your own schedule and being your own boss is strong. There are people everywhere wishing they had the ability to take that leap of faith, and franchises are becoming a very common way for Americans to live that dream. Although it sounds amazing, you MUST take certain steps before making any final decisions. Here are 5 steps from The Franchise King®, Joel Libava, is the author of the book, Become a Franchise Owner!
1. Talk To Your Family
If you think for one minute that becoming the owner of a business will only affect you (because of the long hours you’ll be putting in, etc.) you’re going to be in for a big surprise. Do you have family support? Starting any business is a family decision, even if it doesn’t involve any family members actually working in the business.
Not only do family members need to understand that there will be huge demands on your time, they need to understand the big picture. A lot of things are going to change if you end up becoming an owner.
2. Talk To Yourself
This could be a good time for you to take up some form of meditation.
Before you embark on what could end up being a life-changing event, you need to have a day or two to yourself. Please turn off all electronic devices. Take some walks. Go through the pluses and minuses of starting a business in your head. No outside interference allowed. See how you feel when you’re done. Are you really ready to take on a major commitment like small business ownership?
3. Find Yourself
While you’re still in self-discovery mode, I want you to think about a couple of things.
The first thing has to do with skills. Grab a sheet of paper and write down what you feel your top skills are as they relate to business. Are you good with numbers? Are you a great team leader? Are your sales skills top-notch?
Grab another sheet of paper and write down the traits that define you. Are you deliberate? Laid-back? Driven? Detail-oriented? Outgoing? Make sure you write down your most dominate traits.
Now, you have two lists that can help figure out what types of franchises to search for. Hint: franchise concepts that allow you to use your top skills, combined with your personal makeup in the operation of the business, are the opportunities to start investigating.
4. Grab A Calculator
Don’t even think about exploring any franchises without knowing where you stand financially. Gather all of your financial information and plan on spending a few hours figuring out where you stand. Your goal is to come up with your net worth. You’ll need to know your net worth before you go on to the next step.
Wouldn’t it be upsetting to get really excited about a specific franchise only to learn that you’re not financially qualified to own it?
5. Visit Your Bank
The best time to meet with a loan representative is when you don’t need a loan. Think about how relaxed you’ll be. There’s no pressure. You’re just gathering some information that you’ll be able to use later.
It’s also a great time to find out what the lending environment is like, and find out if your lender handles SBA loans. In addition, you can probably get a list of things you’ll need to get the small business loan process started.
Just in case you end up buying a franchise. And, if you do, you’ll have all of your ducks in a row.
What thoughts do you have about running a franchise? Do you have any success stories to share? What is the best way to determine whether a business idea will succeed in a given area? Leave us a comment below!
