The Entrepreneur’s Source® Reviews 4 Crucial Factors to Consider Before You Invest in a Franchise. It’s easy to be overwhelmed by the sheer magnitude of choice when looking into franchise brands to invest in. There are thousands of franchise opportunities out there, but not all franchise brands and opportunities are created equal. Depending on a wide variety of factors, such as your goals, desired lifestyle, preferred time commitment and more, some franchise brands may not be the right fit for you. Do you know what aspects to consider when evaluating the thousands of franchise opportunities out there? Today, The Entrepreneur’s Source reviews four crucial things to examine when evaluating franchise opportunities to help you narrow down your search and zero in on the perfect fit for you.
- How the opportunity aligns with your I.L.W.E. Goals
Examining how a franchise opportunity aligns with your specific goals for your future is a great first step in evaluating if a franchise opportunity is right for you. If you haven’t already examined your Income, Lifestyle, Wealth and Equity (I.L.W.E.) Goals, then now is the perfect time to do so. Establishing these objectives can help you gain clarity about what you’d like your future to look like and comparing this to how a specific franchise brand could be leveraged to accomplish your goals, needs and expectations can be a telltale sign whether it’s a good match for your aspirations.
- The overall cost of the franchise investment
Many people think there is no way they can afford to invest in a franchise, but franchises come in all shapes, sizes and prices. In fact there are franchise concepts in nearly 100 different industry sectors, with investment levels ranging from as little as $10,000 to $3 million or more depending on the specific opportunity. If you only have a certain amount of capital available to invest in a franchise business a good way to start eliminating opportunities is to look at the required capital for the initial and continual investment. Examine the costs that go into opening a franchise, such as the franchise fee and real estate investment, and ongoing fees such as royalties. If these costs seem feasible for you, then that’s another check mark for the franchise opportunity being the right fit for you. It’s important to be conscious of what feasible means to you so that you do not limit your options from the start. You may be surprised to learn that you can find capital to fund your franchise in non-traditional ways. To learn more about nontraditional funding options, click here.
- The systems and level of support offered from the franchisor
In franchising systems are king. What makes great franchises great, is that they have simple systems that are replicable and duplicable. Franchise systems are designed to make sure the service or offering creates a standardized customer experience, but also so that the franchisee can save themselves significant time, energy and money. Most franchise brands offer ongoing support from the franchisor, but depending on the franchise brand this can greatly vary. If you don’t have much business experience investing in a franchise brand that offers a greater deal of support – such as a 24-hour hotline or on-site training – may be an ideal aspect to look for in a franchise opportunity. However, if you’re a previous franchisee or business owner, then a large amount of franchisor support may less valuable to you, so you may want to look for an opportunity with less continual support. There’s no right or wrong amount of support, but prospective franchisees need to establish just how much they need and consider franchise opportunities offering that desired amount.
- Are your values aligned?
Like any relationship, whether it’s personal or business, becoming part of a franchise system is a partnership that is interdependent and should be a win-win for both the franchisor and franchisee. The most successful franchise brands are thriving due to their franchisees. On one end, the franchisor needs to feel confident that each franchisee will represent the brand well and elevate its name. On the flip side, the franchisee must feel like he or she is getting the value and support out of the relationship with the franchisor. Without both parties being satisfied, it would not make sense to create this partnership. Are your vision, mission and values closely aligned with that of the franchise system? If no, this is a sign that this franchise may not be a good fit for you.
You Don’t Need to Go At It Alone! Properly evaluating franchise opportunities, if left to your own devices, can take extensive time and energy, but following a proven process like the one The Entrepreneur’s Source® offers actually makes it less overwhelming and can help you uncover opportunities where you least expected it. It can actually be a manageable and empowering journey; some may even say an exhilarating one. It is not coincidental that 95% of our clients who embark on this “journey of discovery” with us, end up discovering options they admittedly never would have looked at on their own or had prematurely dismissed. If you’re still not sure where to start or want someone to guide you through the process of uncovering and evaluating franchise opportunities, contact an alternative career coach at The Entrepreneur’s Source franchise today. E-Source coaches can provide you the leadership and guidance that you need to help you uncover if an opportunity may be the right fit for your goals and aspirations. For more information on how a coach can help you better evaluate franchise opportunities, contact a coach today http://www.entrepreneurssource.com/blog/contact/.