Tag: investment

3 Questions You Should Ask Yourself Before Buying a Franchise

DO I HAVE WHAT IT TAKES TO START MY OWN BUSINESS/BE AN ENTREPRENEUR?  

So you want to be an entrepreneur?  You’re not alone! Consider these statistics:  

  • 55% of all Americans want to be their own boss.   
  • 37% of all households are involved in small business.   
  • 70% of all high school students want to start a business.   
  • 1 out of every 25 adults is currently starting a business.   
  • 5 million people started a business in 1995.   
  • In 2017, there were 38 million home-based businesses.   

Entrepreneurs have a different way of looking at life: 

 

  • Opportunity 
Vs.
  • Security 
  • Profit 
Vs.
  • A Paycheck 
  • Results
Vs.
  • Routine
  • Trying New Ideas 
Vs.
  • Avoiding Mistakes 
  • Vision 
Vs.
  • Short-Term Gain 

 

DO I HAVE WHAT IT TAKES TO BE A FRANCHISEE? Once you have determined that you have the abilities, skills and desire to start your own business, you have to further determine if you have the requisite traits to become a franchisee.   

  • Can you follow someone else’s rules, even when you think you have a better way?  
  • Are you prepared to accept coaching and advice on how to run your business from a franchisor’s field and headquarters’ staff?  
  • If the Franchisor turns down your great idea for changing the system, can you live with that?  
  • Can you trust that a franchisor is working for the benefit of the entire system-even when their decisions do not necessarily go your way?  
  • Are you willing, able and eager to learn new skills?
  • Can you set aside old habits and beliefs to follow a franchise system? 

 

CAN I AFFORD A FRANCHISE?  

  • How much do you have to invest?  
  • How much can you finance?  
  • How much do you need to live on?  
  • What is the total investment required for getting into the franchise?   
  • How much can you earn as a franchisee?  
  • How long will it take to breakeven?  
  • What return can you get on your investment?  
  • Can you get a better return from another investment?  
  • Are the risks equal?
  • Are you willing to put your risk and trust in yourself?