Transitioning from employee to employer is life changing, and often times can be challenging. There's a mindset shift that needs to occur, but this can be achieved through the proper preparation techniques in order to get yourself ready to be a business owner. While some people may assume that taking on a franchise is an easier transition than starting a brand new business from scratch, there is a considerable amount to consider before going ahead. If you’re on the verge of buying your own franchise, or just in the research stage, here are a few ways to prepare yourself for franchise ownership.
Make Sure Ownership is the Right Choice for You
By now, you are likely pretty confident about what type of franchise you want to invest in. Experts warn potential buyers to be 100% sure they want to invest into a certain franchise before taking any steps. According to Josh Brown, a franchising lawyer, “there’s a big misconception out there that franchises are just a business in a box." While franchises do offer a number of generic assets that can be utilized by franchisees, the franchisee must still be entirely committed and be on the same page regarding the business’s values, ideals and goals. Be sure to choose a franchise that aligns with your personal goals and commitments, and whose products or services both excite and fulfill you. At F45 Training, franchisees are fully committed to not only their members’ health and fitness, but also their own, and it shows.
While this an obvious step to take, this is also one of the most important steps. You should feel financially stable and ready to take this next step, and it’s always better to be overprepared than underprepared when it comes to finances. Before you quit your current job and take all your savings out to purchase a franchise, ensure that you have the proper amount required for the investment. Some franchise owners also prefer to have a 'reserve fund' that they feel comfortable setting to the side, knowing they may have to dip into it during their time as a business owner. This approach also means that in the event that it takes you longer than the estimated six months to a year to break even, you’ll have an amount to fall back on to ensure financial security. The Federal Trade Commission (FTC) advises that potential investors save enough to cover living expenses for two years to be on the safe side.
Invest in Professional and Personal Advice from Trusted Sources
Speaking to people who are currently franchisees, as well as family and friends, can help you get some perspective on your current situation and this potential new chapter in your life. Whether you are asking them for business advice or simply asking them to help you as a friend, this can help you feel more at ease about your decisions.
According to Forbes, the Financial Disclosure Document of the business you’re looking to invest in should offer the names and numbers of their current franchisees. Speak to at least a handful to get an insight into what owning one of the franchises is like, and ask them a number of questions. These should include what all the costs involved are, how long it took them to break even, and what type of support is available.
When it comes to business, sometimes it isn’t about what you know, but rather who you know. Making a connection between you and other like-minded business people will not only help you prepare to become a franchisee, but also help you transition from employee to owner. One of the easiest ways to meet other businesspeople is to join franchise and business-related events and do some networking. From conventions to expos and conferences, there are numerous events happening throughout the year that give you the opportunity to make positive business connections. You can even maintain a relationship that can potentially set you up to have a lifelong friend or potential future business partner.
If you have decided that it's time to break into the world of business ownership, it is important to start preparing yourself now for the transition. While the first step towards your goal can be nerve-wracking, you have the tools necessary in order to make your goals a reality. By speaking to those with experience, preparing financially, making valuable professional connections, and choosing the proper franchise that you identify with, you will be able to prepare yourself mentally and financially to take on your next career move. Are you ready to change your life?