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.
green cleaning service Park Ridge ..A Brilliant Marketing Idea... sounds great but what is it?... Read More
If you run a pressure washer business you need complete... Read More
Sometimes when you run a business you feel as lonely... Read More
As a business owner, you already know how important it... Read More
Outsourcing is the strategic use of outside resources to perform... Read More
When you feel like you're always busy working on your... Read More
What's your job profitability? Do you know?Many business owners are... Read More
A thing worth doing is worth doing badly. Yes I... Read More
WHEN you are operating or planning a small business that... Read More
If you are in the professional car care business you... Read More
Franchisor expansion policies are not as simple as one might... Read More
Cash is the lifeblood of any business. As humans need... Read More
And is having a logo really that important?My answer to... Read More
Providing high quality customer service is a must for any... Read More
If you have a busy private practice, chances are you... Read More
In these days of insecurity and uncertain futures, the tendency... Read More
In today's economic climate, the first priority for the small... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
I believe the number one reason why a business will... Read More
Why are Chambers a good launching pad?Chambers provide you with... Read More
Cash is King?That is what everyone tells us and it... Read More
Every home business has the same problem of how to... Read More
There have been many great points raised on both sides... Read More
It's the dream of every person who starts a business... Read More
Company mottos can easily be printed on a business card.Sometimes... Read More
emergency cleaning services Morton Grove ..Q: I will be retiring this year at age 60... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
It is imperative to have your business legally prepared. How... Read More
Many years ago, I had warned the carwash industry of... Read More
What is a Virtual Assistant?? A Virtual Assistant is that... Read More
Most business owners know when they need an accountant, but... Read More
Whether you are an Entrepreneur or Business Professional there are... Read More
Many self employed professionals find themselves overwhelmed, frustrated, and confused... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
How often has someone thought of starting a business based... Read More
Just a few years ago, when one thought of a... Read More
We all know that a building has to have a... Read More
What is a Family Business? A family business is basically... Read More
One of the best marketing strategies a business or organization... Read More
Running a business on the net these days can be... Read More
If you are thinking of turning your current into a... Read More
If small business had no important outside audiences, it wouldn't... Read More
Anyone who is serious about washing aircraft as a full... Read More
Are you thinking of starting a small pressure washer business... Read More
Many businesses offer small business franchise opportunities. There are many... Read More
The key to organizational focus and helping those who need... Read More
When it comes to cost, how much can you afford... Read More
Consistency is a huge word when operating your business. I... Read More
Mr/Ms, 'not me' is often on holidays in your business.... Read More
Nothing can drive a business down faster than customers who... Read More
Small Business |