Self-assessment. Everything starts with you. Make a list of your
preferences, list the business categories you prefer and a list of those type
of business you do not. Buying the right franchise for you starts by knowing
what kind of business you like and which one you don’t. We all want to work
hard, but not all of us want to work 24/7, so be careful defining if you want a
business that involves all your time or the traditional 9 to 5 Monday to Friday.
Are you willing to work alone? There are some franchises that are designed for
a single operator (usually work from home type of business) and some will require
to manage several employees. Find out if you are willing to work alone or
manage a crew, that is quite important.
Capital available. Not only the capital you have to invest now
but consider future investments and costs, think about expansion and growth. Like
buying a new car, people tend to buy assets over their real financial capacity,
so it is fundamental to be conservative in the initial investment and plan to
have reserves to cover the future operation in case of rainy days (there are
always rainy days).
Research. Do your homework, there is nothing like dedicating
your time to find information, evaluate, validate and compare. Do not trust
only the information provided by franchises, complete the pictures with your
own research. Take your time to speak to current franchisees, they will provide
very valuable information regarding the day to day operation and financials.
Talk to an adviser. A lawyer and accountant a business coach or
business consultant, they all can help to understand the complexity of the
franchising process and franchise legal documentation. It is not advisable to talk
directly to a franchise without the support and opinion of an expert on your