When you look at your life, owning a franchise business seems to make sense. You’ve spent years honing your executive skills to turn big profits for others. After all the late evenings, long meetings, and short coffee breaks, you have very little to show for it. From the perspective of experience, you can see how your efforts could have accumulated into a small fortune if they had been directed towards your own goals.
Of course, it’s never too late to realize your dream! A franchise business is a perfect way for seasoned business pros to use their hard-earned skills for their own gain. Finding the right opportunity, however, is essential. The right opportunity should be to meet your financial goals, realistic, and something for which you are well-matched. There is an amazing amount of information to wade through in the pursuit of the perfect franchise business. In addition, newer or more elite opportunities may be impossible to find without the proper introductions. How can you be sure a business is the best possible match before you sign on the dotted line?
In the franchise world, advisors serve as guides for opportunity-seeking investors. These professionals combine an insider’s knowledge of what’s available with a thorough checklist of what you’re looking for to uncover the franchise opportunities that are best suited to your talents, goals, and budget.
However, before working with a professional, there are a few things you can do to help secure the right vehicle for your future success. Consider these issues to ensure you choose the right franchise business.
Clarify Your Vision
What are you really looking for? At first, the answer seems mindlessly simple. You’re obviously looking for a financial opportunity that garners the most financial gain without being too tedious. You might have the idea of using your skills to make the world better in some small way or to help one your favorite social causes. If all of that could come wrapped up in an easy-to-sell and in-demand product or service, that would be ideal, right?
While all these statements are true, they are far too general to be useful. There is an astounding number of potential business opportunities out there. You don’t want to waste your time wading through franchises that aren’t properly paired with your talents, experience, and expertise. Then think about how those characteristics could be used in your commercial pursuits. Here are some examples to start your brainstorming process.
- Let your corporate experience lead you to the right business opportunity. There are excellent franchise business possibilities for those with business operations experience.
- With a franchise, you can leverage your successes in the previous career. Experience with accounting would be very helpful, as would sales or management.
- If have a background as an educator, training employees could be a valuable strength to apply to your own franchise.
- Do you have a hobby that’s always been a special refuge for you? From painting to macramé, crafty opportunities exist that will let you indulge your inner artisan.
Spend some time thinking of ways to incorporate your real-life experiences with your business pursuits to turn your day job into your dream job.
Your goals should be big and slightly scary, but they shouldn’t be complete fantasy. Even seasoned executives can get a little overexcited about a potential opportunity. This is even more likely in a high-stakes game like finding a franchise business. So, before you start cashing in your 401k or seeking an angel investor, spend a little time thinking hard about your personal financial situation.
- What is your retirement plan? You should invest wisely and never risk your entire nest egg on any pursuit. How much are you truly comfortable borrowing? Be sure to ask your advisor about tax repercussions as well.
- How does your rainy-day fund look? Stocks, bonds, and mutual funds are a great source of quick funding. But they may also represent a large portion of your personal wealth. Cash savings accounts are similar. Again, it’s best to chat with an advisor before committing your personal emergency fund to a business venture.
- Considering the time it will take for your business to become fully profitable, will you be able to meet your future financial obligations? College tuition, medical bills, and mortgages won’t wait. Residual income from certain types of accounts might tide you over, but it’s always wise to let an expert check out your plan first.
Do you see a trend here? Basically, you should talk to a trusted financial advisor before committing to any franchise business. Better safe than sorry.
Look to the Future
The new consumer market, powered by the instant gratification of high-speed internet connections, is all about trends. The latest colors, most exotic features, and the fastest delivery are the things your demographic craves. Don’t get stuck in the Stone Age with a soon-to-be-obsolete product or service.
As all business executives know, market research is the lifeblood of good financial decisions. However, it can be tricky getting the entire truth in a brand-new industry. This is especially true in fast-moving industries related to computing and electronics. Dedicate a few days to deep market research to see if a potential opportunity is capable of what the company claims.
- Read periodicals and information from your potential company’s competition. Go beyond the sales sites and general public information. Look for company newsletters, personal blogs from executives in the industry, and other insider information that might relate.
- Talk to other professionals in the industry online. Don’t be afraid to ask them where and how to verify certain information you might find iffy.
- Use government websites to learn of any recent legal changes in the industry. Be sure to check at the federal, state, and local levels, as business laws are often location-based.
This information should be enough to help you objectively evaluate the future growth potential of a product or service. Don’t risk your financial future on someone else’s hype!
Or You Could Just Call Franchise Logic
These steps are an essential part of picking the perfect franchise business. But they also take a LOT of time. That’s where franchise advisors come in. Careyann Golliver created Franchise Logic to help evolving executives find their niche as an independent business owner. The services offered mitigate the financial risk of business ownership while maximizing your career enjoyment.
Contact us to learn how we can assist in the next step on your career path.