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Is Franchising/Business Ownership for You?

Is Franchising/Business Ownership for You?

 Know if Franchising/Business Ownership is Right for You?

Is franchising or business ownership right for you?  There certainly is no quick and easy answer to that question.  Most of us dream the American dream of fame and riches and of controlling our own destiny through business ownership.  The truth is that only about 1% of us will actually become a business owner because business ownership takes discipline and effort and requires some skill and experience to make it work well.  Furthermore, business ownership takes a great deal of determination and perseverance, requires some initial capital as well as making sure there is appropriate working capital and that your personal/family living expenses are also taken into consideration for your capitalization plan.  Moreover, it takes a lot of courage to become a business owner when you have to sign a big check as payment for your business or franchise initial payment.  You are in essence investing in yourself and taking the first step to becoming a successful owner with the system and brand that you are joining.

Nevertheless, are there certain traits that tend to make some more successful at franchise or business opportunity ownership?  Yes.

Ability to follow systems.  Are you disciplined?  Can you put effort into making your goals a reality?

Are you a team player? 

  • If you want to go it alone or think you have a better answers than what is tested and proven by a franchisor, why would you want to buy into a system?  Instead, you might be better suited to creating your own business opportunity or franchise system after you demonstrate through trial and error that it does indeed work. 
  • Most of us want success and we want our success and the path to income to come more quickly than going it alone and having to develop everything from scratch.  We like to work with others.  We like to learn from others.  Thus, a proven system with training and support will enable us to jump-start our business and become cash flowing more quickly.

How much following do you have to do?  Will you be able to be creative?

  • That depends on the franchise and industry.
  • For example, if you are in a food industry, you must follow many guidelines for food safety.
  • If you are with a more established and mature franchise, you may have less freedom to be creative.
  • In a younger and newer system, often the franchisees are very creative and working with the franchisor, test ideas they have and then those become adopted by the entire system if they work well.  For example, the fish sandwiches, the double drive through, the salad bar were first rolled out by franchisees.
  • Franchisors though must protect the brand for the system and the other franchisees’ investments.  There must be some uniformity in experience for their customers.  That way there can also be cost savings and group buying power.  
  • There is a continuum of control exerted by the franchisors and cultures vary greatly among the systems.  That is one of the advantages of working with a consultant with knowledge of franchisor cultures, allowing better guidance through the due diligence process.
  • Review the Franchise Disclosure Document (FDD).  What do their requirements and contracts say in terms of control?  Speak to the franchisor about concerns.  Also validate this with the franchisees.  You will be able to find a system where you fit. 

Emotional Maturity

  • How do you handle problems?  Do you take responsibility?  Do you blame others?  Are you able to pick yourself up and motivate yourself after you have made a mistake and learn from it or does it get you so down that you become too depressed to work well?
  • Are you a leader and team builder or a follower?
  • Can you problem solve? 
  • Good business owners must handle the issues presented to them from time to time.  The franchisor can support and suggest.  There is guidance in the manuals.  There is training but the business owner must carry out and implement.  The business owner may have to tackle an issue and have the ability to pitch hit when required.  They have to persevere and maintain discipline to receive the rewards of business ownership.

Positive Attitude – laws of attraction

  • The attitude is one that is can do or half full.  They are infectious and attract others through their positive efforts.  Not everything goes right all of the time, but people and customers give them a second chance because of their sincerity and genuineness.

Knowing when to seek help

  • Even those who are positive know when they need expertise and specialized guidance.  They understand limitation but know when to leverage resources and those around them to reach their goals or accomplish the task.

Belief in calculated risk

  • Franchising is “one step up” from pure entrepreneurism.  What this means is that if you are all about taking huge leaps and big risks because what you LOVE is the big potential payout, then what you really seek is being a real entrepreneur, and franchising may not be the right choice for you.  Franchising begins with a more proven business model and expands from there, so your risk is more likely to vary from “moderate” to “low.”  The payout with franchises and business opportunities will build over time and begins with the “You” factor – your efforts one day at a time!