Perhaps you’ve been laid off recently or you’ve always had a burning desire to own and manage your own business. No bosses, no cubicles! Unfortunately, there is no burning idea to accompany that desire. You’ve tried doing research but you just don’t have anything that feels right. Consider purchasing a franchise instead. Keep these things in mind:
If you buy a retail business, that business owns YOU-not vice versa. Retail businesses with a store front and hours where you are open to the public require someone to be visible during those hours. OR you have to find affordable, trustworthy help which can feel impossible.
Franchises can be very expensive. There is no “starting small” as you are required to do things the franchisers way. However, there are franchises that are less expensive so do your research.
You will want a franchise who offers strong franchisee support if this is your first purchase. The best franchisors realize franchisees are their money in the bank and take very good care of you. From financing to training to marketing and accounting, franchises that work well have support built in.
One of the best parts of purchasing a franchise is that the probability of success is greatly improved because the business idea has already been proven sucessful (or it wouldn’t be franchised). For a first time business owner with little experience this can be hugely helpful. You can still fail, but it is much less likely than starting a business from scratch.
Do your research when it comes to fees and royalties. These are negotiable and many prospective owners don’t realize this. Royalties, in particular, can be limited to a few years versus the lifetime of the business.
I’m a CPA with experience evaluating business values and can help you determine if a franchise is right for you. Call me for a 30 minute consultation.
by Steven Schlagel