Want to own a business without having to go through the slog of starting one? Starting a business is so hard, and isn’t a task that most people should set out to accomplish.
Luckily, you can buy an existing business. Instead of going through the long, hard hassle of getting it up and running, you can jump right into the day-to-day operations and use your skills and passions to improve the business.
But you shouldn’t just buy any business. Considering buying a franchise instead. With a franchise, you are part of a larger network of businesses.
You typically have a large, organized, corporate entity behind the franchise to offer support, resources, and guidance. When you own a franchise, you aren’t on your own. There is always someone in your corner, and that support, or lack thereof, can make or break someone’s entrepreneurial career.
Keep reading to learn why buying into a franchise is a great idea, and how to buy a franchise.
1. Buying a Franchise in the Right Industry
One of the most important decisions you need to make is what industry you are going to buy into. Franchises are available across a wide range of industries, from restaurants and coffee shops to barbershops and gyms, and everything in between.
There is no right or wrong industry. But there is likely one that is better suited to your personality than the others. For example, if you are a fitness junkie, owning your own gym can be incredibly fulfilling.
Are you looking to support and build your local community? You can even start a fundraising franchise. With this business model, you help schools and nonprofit organizations in your local community raise funds to complete the mission that they’ve set out to do. Check out https://apexleadershipco.com/fundraising-franchise/ for more information on this unique business model.
2. Visit and Research
When you’ve come up with a list of possible franchise opportunities, start visiting all of the local stores in the area. You want to research how they do business, how they serve customers, and how well organized they are.
Visit multiple locations for each type of franchise, so that you don’t base your decisions off of one particular store, which may or may not be up to par. Pay close attention to what’s going on behind the scenes.
Are the employees organized? Does it seem like there are systems and processes guiding their work? Or does it feel chaotic?
You want to be part of a franchise that has built systems and processes for you so that when you are buying into a franchise business, you can just plug and play.
3. Read the FDD
The FDD, or Franchise Disclosure Statement, is a vital document. It tells you everything you need to know about each franchise opportunity.
It should discuss the systems and processes that have already been established for you. It should have the company’s history, a description of the current operations, and a list of future goals.
You should also be able to see the numbers. How much does this franchise average in revenue each year? What is the average owner’s salary? Read this document a few times, and have trusted advisors also look over it on your behalf.
Want to get the gritty details of what it’s like to work inside one of these franchises? Just ask!
Patronize your local franchise opportunities and start conversations with the employees. Tell them you are considering a job for the company, and are wondering what their experience is like.
Ask them if they enjoy working for that company, and what they would change if they could improve anything at the store. These simple insights can provide you with a wealth of information.
5. Franchising Is Safer
It’s no surprise that franchise businesses are safer to start than independent, small businesses. It’s much more likely that with a franchise, you will survive the first five years of business, whereas most independent businesses fail in this timeframe.
So while some aspiring entrepreneurs may seek to build their own brand and reputation, success is statistically much more likely with a franchise.
6. Some Franchises Are Safer than Others
That being said, there are some franchises that are safer bets than others. Look for companies with a long, safe, reliable track record.
Franchise opportunities such as McDonald’s 7-Eleven, The UPS Store, Great Clips, and others are fantastic opportunities that are likely to survive and thrive for many years to come.
7. How Much to Buy a Franchise
What about buying a franchise cost? Costs can vary dramatically.
There are many franchises you can start and buy for under $50,000. And there are others that require a much higher investment.
Luckily, whether you choose the budget-friendly approach, or pursue a franchise with a high price tag, you can find a way to fund the purchase of the franchise without having to have all of the cash yourself.
8. What are Your Work Goals?
Consider your work goals. Do you want a franchise that allows you to sit at a desk from nine to five, or are you okay with businesses that open early and stay open into the night? Do you want to be able to work from home, or do you want a physical location?
9. Manage It Yourself, or Hire a Manager?
Many franchise owners act as the day-to-day manager, while others act more as an investor, removed from the daily operations. When buying an existing franchise, you may already have an excellent manager in place. Or, you may need to hire someone, unless you want to become that person.
10. Build Relationships With Franchise Owners
One of the best things you can do before and after buying a franchise is build relationships with other franchise owners. You can learn so much from them. And having a network of people you can turn to when you are struggling is incredibly important.
Take Your Time
As you can see, buying a franchise can be incredibly rewarding. It can be your ticket into the world of entrepreneurship. And it can set you up for future success, whether that’s starting a business from scratch one day, owning multiple franchises, or something else entirely.
Just make sure you take the time to buy the right business. There’s a lot to consider and it’s not a decision to make lightly.
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