Transitioning from employee to employer can be challenging. There’s a mindset shift that needs to occur, and it takes a certain amount of preparation to get yourself ready to be a business owner. While it may seem 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 a franchise, or just in the research stage, here are a few ways to prepare yourself for franchise ownership.
Make Sure Ownership is for You
By now you’re probably quite certain about what type of franchise you want to invest in. But 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 matched to the business’s 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, 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, many of us might feel ready financially before we actually are. You might technically be ready, but it’s always a safer bet having a bit more saved away than you might think. Tough times are not wished upon any, but they can happen. Before you quit your current job and take all your savings out to purchase a franchise, hang on for a little longer and keep on saving so that you have more than just the minimum amount required for the investment. 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
While too much input can be detrimental to your decisions, it is a wise choice speaking to both people who are currently franchisees as well as family and friends to get some perspective. 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 including what all the costs involved were and how long it took them to break even, to what type of support is available. Additionally, speak to close friends and family about your potential new business investment. Being removed from you as a business person, they will be able to offer life orientated tips that you might not have considered.
A lot of business isn’t about what you know, but who you know. Making connections between yourself and other business people will not only help you prepare for becoming a franchisee, but also help you transition from employee to owner. One of the most fruitful ways of taking action on this is to join franchise and business related events, and do some physical 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.
So if you have decided that 2019 is going to be the year you break into the world of business ownership, start preparing yourself now for the transition. While the first step towards your goal can be nerve racking, speak to those with experience, prepare financially, make valuable professional connections and choose a franchise that you identify with 100%, to get yourself mentally and financially prepared to take on your next career move.