Deciding to start your own franchise is just one of the first steps to getting started. Buying a franchise is a lot like dating. You and the company have to be a good fit. The company you are considering starting a franchise with must fit your needs, and you must meet the guidelines they have set up.
You may be thinking, "I have the money, I will just sign up and get started." It's just not that easy. The companies want to make sure you will be successful and a large part of that will come in the form of discussions, questions, paperwork, and if you're still both attracted to each other ? FINAL APPROVAL!
Chances are if you're a true entrepreneurial spirit, your nature won't be right for most franchisors. Franchisors want you to be able to follow a system that they have proven to be successful. A good example of this is "the golden arches". You won't ever go into one that doesn't follow the rules and guidelines set down by the franchisors. They may for a little while, but they will and can lose their franchise license. There isn't room for innovation in franchise companies. They don't want someone to cause any trouble and rock the boat on their proven business systems. A great place to get some tips on Franchise Start ups is at startupsmarts.info.
If you're capable of following a PROVEN system for business success you will be a good franchise owner though. There will still be thousands of questions and they are looking for a specific type of person.
The franchisors want someone with an entrepreneurial spirit to be self sufficient, but with out enough free spirit to re-invent the wheel. The companies usually prefer you to have some management experience or extensive experience in the field.
Your personality is the next thing that will be reviewed on your "date" with the franchise company. If your wishy-washy and don't know what you want, you can probably count on this being your last date with that company.
Just like when you meet a new prospective person to date, you check out their outfits, car, etc... You don't want to end up dating a beach bum right? Well the franchisors don't want to be dating someone who doesn't meet their financial guidelines. If you're planning on borrowing the funds to start the franchise, you may have a rude awakening. Even if your credit is good, and you qualify for a home equity loan, you may find the bank will not lend it to you for starting a business.
Make sure you have your finances in order. Prepare a financial statement that includes your net worth, and what assets are able to be turned into cash in a decent amount of time. Franchisors are going to home in on your net worth and liquidity before anything else. Having cash on hand is much more important that having the ability to borrow funds. Financing debt on other debt is not attractive to many franchisors.
The franchisors will also look at your marketing skills, and your ability to work the schedule the franchise takes to run. If you are used to working a normal 8 to 4 job and suddenly find yourself having to be at "work" 7 days a week it WILL affect your life. Can you make that type of change?
You can find more information on Franchise Financing at: http://www.finance-franchise.info and place like http://www.entrepreneur.com/
Edward Charkow is the administrator for http://www.nichebiz.info and grants reprint rights for this article as long as this resource box remains intact.
cleaning team near Winnetka ..One of the great challenges for independent professionals and small... Read More
If you've been considering incorporating your small business, you've probably... Read More
We love Wichita because it has great all round weather... Read More
Q: Is the online world the best place to sell... Read More
Never underestimate the power of perception! Perception plays a major... Read More
So it's time to invest some finances into advertising your... Read More
How do you make sure you have the business solutions... Read More
Too often in business we get trapped into reviewing our... Read More
We have all seen the mobile washing units cruising our... Read More
Small business success is very similar to learning to walk,... Read More
-- The One Pager Shortcut Series --People do business with... Read More
Just as you are about to say "good-bye" to your... Read More
Start thinking about buying an established business if you want... Read More
Large corporations use employee manuals to both educate employees about... Read More
Why does a good business relationship rely on having some... Read More
When you go into business for yourself, there are many... Read More
Introduction: This article is written as a general discussion on... Read More
In today's marketplace the words 'job security' have become an... Read More
It is not surprising that some people may perceive Six... Read More
All franchises must meet the legal definition of a franchise... Read More
How far can you go based on your relationship with... Read More
You bet it's worth it. Publicity via news releases, along... Read More
Quality control in franchising companies is paramount and all franchising... Read More
You may find this Newsletter a little long winded but... Read More
Most new small businesses won't be in business this time... Read More
family-safe home cleaners Northbrook ..What is the best time to expand a mobile car... Read More
If you are a non-operator owner of many work trucks,... Read More
During the California Recall Election, I was very interested. Without... Read More
As small business managers, we juggle limited resources in a... Read More
You want to know more about making money with your... Read More
Now that winter has passed, the annual ritual of spring... Read More
The employer / employee relations environment has been constantly evolving... Read More
Often smart entrepreneurs look for out of the way businesses,... Read More
One of the primary concerns all small businesses have is... Read More
When is advice free and when should you charge for... Read More
Outsourcing is the strategic use of outside resources to perform... Read More
In these days of insecurity and uncertain futures, the tendency... Read More
If you are in the professional car care business you... Read More
As a business owner, you already know how important it... Read More
In the first article we mentioned the main characteristics that... Read More
Many small business startups fail within the first 2 years... Read More
Treat your business as a serious, full-time business and be... Read More
The efficiency of debt collection is the difference between a... Read More
One of the most common issues that comes up for... Read More
Macon, GA goes after garage-gas station conversion detail/hand car washes... Read More
Why does consistency in the message have an effect on... Read More
You've been meaning to tend to the administration part of... Read More
Having their own business is something many millions of people... Read More
The challenges of the small business owner are well documented.... Read More
One of the biggest excuses franchisees of home based and... Read More
Small Business |