Buying a Franchise – A Step by Step Guide
Buying a franchise takes a lot of effort on the part of the franchisee (an individual who owns a franchise). From researching about the perfect franchisor, to calculating the amount to invest, a franchisee needs to make many decisions from the word go. If you are looking at a lucrative franchise options, here’s a step-by-step guide that will help you take the right decision.
Follow the 6 steps given below and find yourself the right franchise:
1. Develop a Financial Plan.
The first and foremost decision to be made is that of the financial requirements. You need to figure out how much you can invest and choose a franchise accordingly. The most basic step is to have a strong financial plan. This will help you make various decisions regarding the expenses on the franchise. Some franchise opportunities might be of interest to you, but cost more than you can afford. It is always better to move on rather than take such a huge risk.
2. Make a Wise Decision.
Determine the success quotient of running a franchise. Investigate information about the business, the company, its place in the market and the life of their products and services. Take up what is comfortable for you to run.
3. Know What Your Getting into.
Before signing the final contract, try and learn the tricks of the trade. Be clear about the business you are going to handle. It is very important to understand the nuances of that particular business and the company policies before stepping into taking on such a big responsibility.
4. Get Trained.
Many franchisors provide training to franchisees and their subordinates about the company, its products and its goals. They orient the franchisees in a way that they become true representatives of the company. Make sure your franchisor is offering you this kind of training, or else you will disappoint the customer and later your franchisor.
5. Financial Options.
It is not always important for the franchisee to invest all his or her money into the franchise up front. Some franchisors provide loans or help franchisee get loans from banks at lesser interest rates.
6. Choice of Products and Services.
Go for products that already have a market. This will boost your confidence in starting up the franchise and not be a burden on you to find a market for their products and services.
The above-mentioned steps will guide you through your search for the perfect franchise. Print them out and start a folder for your franchise research. By getting organized from the get-go with your information, you will be better informed and able to make wise decisions about your franchise operations and business in the long run.
About The Author
Alam Qureshi is a Certified Business Intermediary (CBI), Certified M&A Professional and Broker of Record at ProClient Brokers Inc., Brokerage. He helps business owners learn how to sell a business so they can get the maximum value for their company. call us 416 364 5550 or CONTACT US to get in touch.
Date modified: 10-21-2019