I would like to start by informing you about all of the myths or lies you will hear about purchasing a franchise.
It is a great investment decision if you have the proper information and tools to succeed. There are plenty of salespeople that sell franchises and do an excellent job of inflating the success rate of franchises.
There are individuals that saved money to become an entrepreneurs. I know I was one of them. With the proper guidance anyone can enter the world of small business and succeed.
Here are 3 components that I put together to help you make a better decision when purchasing a franchise.
1. Make sure you budget yourself –
You do need to set a budget on how much you are willing to spend on purchasing a franchise. It is important to keep yourself in check at this stage. Do understand when you purchase a franchise there is no different than starting a small business from scratch.
Both are risky if you do not keep a budget on how much you are willing to spend. So by being aware of your budget you’ll prevent yourself from over spending and putting your money into trouble.
2. Be prepare to do your homework and select wisely –
There are a huge number of franchises you can select from. The great news you should be aware of the success rate of being successful with a franchise is a lot higher than starting a business from scratch.
The one key component to remember when selecting a franchise. Select a franchise that is recession proof and considered hot!
Be careful in selecting a franchise that is seasonal. They may be a great business to purchase when it is in season. What about when the season is over? Will the product or service still sell? There are franchises that go flat after the season is over.
3. Have a good understanding of the business –
When you finally come to make a final decision on purchasing a franchise. Make sure you know and understand the procedures and policies of the franchise business. Look over the contract and understand what you are signing.
When you purchase a franchise make sure you are receiving full benefits and services from the franchise opportunity. Some of the benefits you want to receive is training, marketing, and support to run your business. If a franchisor will not provide such benefits then you really want to reconsider if that is a business you want to invest in.