Home Finance Tips So You Want to Buy a Franchise? 5 Ways to Know You Have What It Takes

So You Want to Buy a Franchise? 5 Ways to Know You Have What It Takes

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So You Want to Buy a Franchise? 5 Ways to Know You Have What It Takes

If you are thinking of becoming your own boss, investing in a franchise business is a popular option. Not only do you have the benefit of being your own boss, but you have the advantage of directing your own lifestyle whilst having a solid balance between work and life.

Buying a franchise usually means a big commitment of money and time initially though so it’s important you take the step armed with a lot of research and some tough questions. Most importantly though, to own your own franchise you need to have the “it” factor – do you have what it takes to teach and mentor others? If your answer is yes, then you’re a step in the right direction. Once you have found a franchise for sale, take a look at these expert tips to see what makes up the “it” factor and what to expect for a door opening opportunity

1. You are willing to take the risk

Any investment is risky and investing in your own business is no different. Before you rush into an opportunity to own your own franchise, it’s important to evaluate the amount of risk involved and if you are prepared to it on board in an exciting business venture.

The best way to know if you are willing to take the risk is to look at any major money or investment decisions you have made in the past. How did you handle the “risk” part of those decisions and how much research did you do before you came to the conclusion it was right for you? Did you do some research and say “yes” pretty quickly or did you analyse the opportunity for months prior? Whatever you choose, make sure you can handle the risk.

2. You have ‘the’ personality type

There needs to be a little self-evaluation done before you make the decision to buy your own franchise. Telling yourself you can follow all the rules in a franchise business is one thing, but implementing them when you become a franchisee is a different thing.

This is why self-reflection is important. Are you are a natural born leader? How do you cope in corporate settings? Can you accept that the reputation of the business will be largely dependent on the franchises network, not just your part? Are you objective focused in order to take action or are you competitive and make impulse decisions? Are you more concerned about what you achieve that what you receive? Know your personality before you start and how this fits into the big picture and how it can grow your business.

3. You seek achievement, not power and authority

Above anything, it’s crucial to be honest with yourself about your desire to be your own boss. For some people, it’s simply driven by working in an unhealthy environment or yearning to escape the dislike for their boss. This is understandable, but to jump into an investment decision based on this can be as bad as jumping into fire with no water to put it out.

Being your own boss has fantastic benefits and freedom, but the truth is it’s not for everyone. You want to be able to go places without pushing or bullying people around. The money you will make owning your own franchise is a huge incentive people go for, but making money by contributing to the success and growth of your business is what makes you stand out from those that just feel they are entitled to it.

You strive to be challenged, not to have things handed to you. This is the key factor that drives great business owners and gets them up in the morning to work the hours.

4. You know your financial situation and have personal discipline 

Setting a budget and knowing where you stand financially is an essential part of the decision making process. How much money will your business need to make to keep it operating and provide you with a liveable wage? It’s no good having a rough estimate with these figures, your financial records needs to be realistic and exact.

Consider your personal support and time management skills. Do you have at least one business-minded and trustworthy person you can bounce options off? Can you meet deadlines and keep track of your own time, money and projects?

5. You have done your homework 

Look before you leap. Buying your own franchise is only good for those that have educated themselves prior and done their homework. There are plenty of resources out there to help you in the process and most small business corporations run seminars on franchising and business. Keeping up to date with these will feed you with reliable and constructive information.

As a future franchise owner, you have a yearning to have the power to do things you believe should be done. You recognize an unfulfilled opportunity and want to grasp it. Whilst the “it” factor cannot be entirely explained, people know it when they see it. Does your chosen franchise have the “it” factor or better yet, can you ignite it?

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