How to Pick a Franchise Business That's Right For You

Buying a franchise is a good business opportunity if you can operate under the heavily controlled franchise environment. Choose the right franchise and write a business plan to determine if it could be profitable for you.

The first step is determining whether you are franchise material. Key questions to consider are whether you can work within the franchise structure by following a prescribed way of operating. Are you prepared to work long hours, averaging 60 to 80 hours a week, without staff support? Can you perform routine repetitive tasks day after day?

Are you prepared to take a financial risk and assume a large debt to start the business? Will your family support you? Are you prepared to research the franchise opportunity and write a business plan? Do you have strong sales skills? If you are unsure about that, business plan writing services can be very useful in this case.

Some people retiring from the military have been successful operating a franchise. They are comfortable working within a set system and following detailed procedures. They enjoy the franchise network and support from the franchisers. They are accustomed to receiving training and working in a team environment.

If you think you would be comfortable in a franchise system, the next big step is choosing the right one. First, you must decide whether to purchase a large, established franchise or a smaller, newer franchise. Expect to pay a high entry fee for a large franchise with an established track record, strong name recognition, and instant customers.

Opting to purchase a smaller, newer franchise will give you more location choices but will be riskier. A determining factor is how much you are willing to pay for a franchise. If you are looking for a lower up-front investment, a smaller franchise system may be your only option.

Regardless of how much you budget toward the investment, match the franchise with your skills, background, and experience. For example, avoid purchasing a fast-food franchise if you lack experience in that industry. Stay close to the industries you know well.

Next, decide if you want to operate a franchise from your home with no additional overhead and no salaried employees, or from an office. Some franchises require an office or storefront with support staff.

Because not all franchises are successful, perform due diligence and investigate at least three different franchises that offer the same product or service you have decided on. Research everything, including the growth potential of the industry, the market, the customer base, and the track record of the franchise. Look for franchises that own and operate company stores.

Now you are ready to write a business plan to determine if you can be profitable operating the franchise in the area that you have chosen.

Freelance Digital Marketing Strategy Consultant with a focus on Seo. I love writing tech related stuff while I drink my first coffee at 5 am. I also have 2 dogs that make my life complete.