Being a franchisee proves to be a good business opportunity for many. Starting entrepreneurs, for instance, are able to get their foot on the door immediately, put up their own stores, and expand their networks fast. Like any other business opportunity, however, not everyone is cut out for it.
If you’re considering being a franchisee, you have to first ask yourself the following questions to gauge if this is the right path for you:
1. Are you more of an innovator or a grower?
Some people start their business with a fresh, new idea. Others harness the already-working ideas of other entrepreneurs. If you’re more of the latter, then you should indeed consider franchising. Being a franchisee will let you flex that grower type of entrepreneurial personality. To know if the franchise brand idea is working, look first at the demand.
For instance, if you’re going for an ice cream cart franchise, see if there’s indeed a clamor for the product at your locale. One way you can have an objective assessment is to look at your competitors. Drop by their place every once in a while, so you can have an idea on the average customers a day.
Aside from market’s reception of the brand, get a glimpse of the internal processes of the franchise as well. Talk to future co-franchisees, if possible. Ask them what they find rewarding and challenging in their business, so you can have a fairly good assessment of the franchise brand.
2. Are you willing to embrace the risks?
Most starting entrepreneurs who go into franchising think that there are no risks in this endeavor. After all, the fact that the business was already franchised proves that it has a proven business model and a good name. It’s true that there are fewer risks to franchising, compared to starting a business from scratch, but risks aren’t completely taken out of the equation.
Franchising a business is still essentially a business, and it’s not immune to risks like economic downturns, bad store locations, or low employee productivity. You have to accept this reality of the business, so you can prepare yourself better. The key to good preparation is arming yourself with the right information.
When you have a good grasp of what the economy’s health is in the next five years, you can choose a franchise that can withstand the whirlwinds of financial distress or put financial systems in place that would protect your investment.
3. Are you eager to learn?
Being a franchisee means being willing to adhere to the set guidelines of your franchisor. You will undergo different training programs, so you will learn the processes of running a franchise. Therefore, it’s important to have a teachable attitude when going the franchising route. Assess yourself if you’re willing to learn and take on a humble disposition of acknowledging that you need help from seasoned entrepreneurs. A can-do, assertive attitude of an entrepreneur can take you places, but an eager-to-learn personality will take you farther.
So, is franchising for you? Consider these questions carefully when assessing your preparedness for this business route. Best of luck!