Who Should Consider Franchising?
Franchising is not for everyone. What types of future franchisees are the concepts looking for?
If you’re looking to build a business rooted in your passion and enjoyment of a certain skill or hobby, that you would like to build from the ground up, then franchising would not be a path for you to explore. Yet there are a few that should consider looking into the right options that fit their needs. Are you one of them?
Having a fundamental understanding of business, operations and managing people are skills at the top of the list. If you enjoy building upon the blocks already established, less hassle and potentially more success, than franchising is a more ideal route to travel as the groundwork has already been laid. It is parallel starting 10 miles into the marathon.
Do not worry if you have no experience in a particular industry: cutting hair, painting a house or teaching a fitness class. Most franchisors are looking for business owners, someone to work on the business not in it. Or someone to manage the manager or GM who will then handle the day-to-day. Being able to manage & operate the business effectively is key, regardless of the widgit or service.
Now if you have zero interest in exercise, fitness, and health & wellness than stay clear of fitness and/or massage concepts. You may very well operate the business successfully, however, if you do not enjoy the ride than find something that brings a “proud to own” feeling. The difference is that you do not necessarily need experience in the industry you would like to own. Franchisors provide all the training and support systems needed to be successful.
Another factor would be your interest level in owning a business. Why do you want to own a business? What do you see it providing for you? How would describe this vision? If you have considered this route, than franchising can provide some beneficial elements of business ownership:
Established business model
Systems, processes and procedures (oh my!)
Initial & ongoing franchisor support
What would a business provide for you?
It could be a way out of job you want to leave, leading you further into a lifestyle you want to live. It could allow you to have extra income into the household. It could allow you to have flexible hours for your family. It could be a synergistic business to one you already own or possibly going a completely different direction and looking at an industry that is nothing like what you currently own! Why not balance out the seasonality of your current industry by adding a different one, giving less highs & lows during the year.
If you find this interest & curiosity budding in you for business ownership, than financing is another piece to consider. Understanding what your options would be helps to further narrow down the right options for you. First off, all franchisors have a required net worth and liquid capital that potential franchisees need to have to be considered and begin an investigation with the brand. From there you would need to understand how you would fund the business, as there are options to consider and find out which is the best route for you:
They will also want to know how you will support yourself during the first year of the business. Are you keeping your current job? Is your spouse working providing the foundational income into the household? Do you have money saved up?
What questions are you asking yourself because you would like to learn more?
Learning about different industries, your goals and needs, varying franchisor requirements, options within the business model and if it is even available in your area, help to narrow down which concepts would be the best fit for you. Many are finding themselves in varying career positions that they would like to begin learning more about what franchising could offer them.
What could it offer you?