Tips for Prospective Franchisees
Thinking about becoming a franchisee? It can seem overwhelming trying to wade through your options and understand the benefits as well as the responsibilities. Here are some tips that will help you make the most of your new franchise.
Speak to other franchisees. Get their firsthand stories of running a business so you can see if it’s how you imagine it to be.
Conduct due diligence. You are responsible for following the rules, no one else. If you have questions about how to do something, find someone who can answer them. Whether it’s a question about taxes or one about labour laws, you must make sure that you seek out the appropriate help to find the answers you need.
Read everything and take notes. Don’t assume anything. Make sure you read every document that you receive and take notes in meetings so you won’t forget anything. Once your business is up and running, you’ll be expected to meet the standards set by the company you represent, so don’t risk your business or your reputation by guessing or not doing your ‘homework.’
Consider all the costs. It costs more than just the cash needed to start your franchise, you’ll need money to buy supplies and pay your staff, too. Keeping up with the financial demands of a new franchise can be daunting, so you should consider all your finance options carefully. You may find that a rolling line of credit can help you stay afloat until your business becomes truly profitable.
Choose a franchise you really believe in. It’s your faith, dreams, and determination that will make your business a success. If your heart’s not in it, you’ll be likely to fail before you can succeed.
Understand that success takes time and hard work. There’s no such thing as buying a ‘sure thing’ when it comes to becoming a franchisee, but your attitude and willingness to work hard can mean the difference between success and failure.