GlobalBX

Introduction
Deciding to own your own business can be the best professional move you will ever make.  Doing so can provide you with great personal satisfaction and a path to significant financial success.  Many people elect to buy a franchise rather than start a business from scratch or purchase an ongoing concern.  A franchise operation gives you instant brand recognition, a tried-and-true set of business methods, and the support of a major corporation.  While you will need to make a great many decisions – before, during and after that glorious day when you open your doors to the public – here are five secrets to success. These are the important steps you will need to take before buying a franchise.  Of course, they are apparently secrets no longer, since you’re reading them here.  Try to keep them under your hat, OK?

First – Recognize Your Abilities
Self-assessment is an incredibly important step in the franchise-buying process.  Although corporations that offer franchises for sale always try to do a thorough job of vetting prospective franchisees, no one knows your skills and experience better than you.  Make a list of the jobs you have held, the industries in which you have worked, and the duties you have performed.  What are your interests away from work?  How do you feel about managing employees?  What is your level of comfort in dealing with the public?  After making the effort to recognize your strengths as well as weaknesses, match them against the criteria for specific franchises in specific fields.  If you’re not that fond of children – someone else’s children, one would presume – you probably should not buy a daycare franchise.  If you love tinkering with computers, perhaps a computer repair franchise is your ticket to wealth and happiness.

Second – Review Your Finances
Buying a franchise involves probably the greatest amount of money you will spend on any single acquisition during your lifetime.  Once you have chosen a particular field in which to operate, there are most likely multiple companies that provide franchise opportunities in that industry.  What is your credit history?  How much cash do you have in the bank, and how much of that do you intend to put toward the franchise?  After adding up all the costs – franchise fee, start-up expenses, inventory, supplies, and so on – you will know the total outlay necessary to get this business going.  Will you need partners or investors?  Does the parent company offer financing options?  Understanding your financial situation will help you answer all these questions, and more.

Third – Make Like an Investigator
As noted above, no matter how specific your interest, every basic field probably has at least dozens of franchise choices available.  A quick Internet search shows more than 800 results for “shoe repair franchises,” 900-plus results for “maid service franchises,” and a staggering 3,200 results for “hot dog franchises”!  You need to plan a focused campaign to choose the right franchise for you.  Look closely at the fees each company collects, and understand what you get for the money you will pay.  Carefully review each company’s franchise disclosure documents and financial statements.

Fourth – Narrow the Field
It will take a great deal of time and effort to reduce the number of franchise choices at hand.  From dozens to hundreds of initial options, you should cut the candidates down to a manageable few – and certainly no more than five.  Some of the culling will be easy, since some franchisors may be out of the running because (a) they don’t have operations in your state, or (b) their agreement with existing franchisees precludes them from setting up anyone new in your immediate area.  Once you have decided on the best apparent choices, dig deeper into the documentation and also check with existing franchisees.  No one will give you better information about running a business than the person who has already gone through the process.

Fifth – Surround Yourself With Experts
If you need help in understanding the disclosure paperwork, engage the services of an attorney – particularly one who has done franchise work in the past.  If you have trouble wading through the profit-and-loss statements provided by the parent company or existing franchisees, consult a CPA.  If you require financing to round out the amount of money necessary to buy a franchise, get friendly with a banker. The money you spend on professional advice will more than pay for itself in the end, especially if the information you glean keeps you from making a poor business decision.

Good luck!

Looking to buy a franchise? We have 100s of Franchises For Sale and Business Opportunities. Check out our Franchise Opportunities and get FREE franchise information today!