3 questions to ask yourself before buying a franchise
From YouTube Vlogs to blogs and personal consultation, you would have gotten the same advice everywhere that buying a franchise is the easiest way to become an entrepreneur and make more money. And yes, it is a proven model that definitely works well with planning and strategy, says Jim LaGanke, President of Stewart’s All American.
On the contrary, you would have also heard some franchising failure stories where people lost their money. Although there is a risk of losing your money in running a franchising, it doesn’t mean it will happen to you. To be on the safer side, it is important to perform a careful research on your potential options and make a plan accordingly. Before you make a final decision, below are some of the important questions given by Jim LaGanke that you should ask yourself.
How much I am willing to put in the investment?
Buying a well promoted franchise gives you an opportunity to take advantage of the economic benefits that you may not get otherwise. These benefits include supply chain demand, market dollars, and buying power. However, you’re required to invest your money as well as your time to buy a franchise and run it successfully.
As a franchisee, you are required to attend trainings, set up your store, and find the right staff, and all these can be time-consuming and even hectic. Make sure you have enough time and money to invest in a franchise.
Are my expectations real?
It’s difficult to predict exactly how a business will perform. Therefore, setting up real expectations are crucial while making any investment, and a franchise business is no exception. With the right plan and strategies, you can make your franchise business succeed.
Am I financially qualified?
Before you buy a franchise, consider whether you meet the financial qualifications or not. Make sure that you have adequate liquid capital available to make the investment. Along with this, it is also essential to properly manage the invested capital. Keep in mind that in the initial months of starting a franchise business, you might not get enough returns but with competitive strategies, you will notice an increase in the returns.
Every franchise business operates differently. It is thus crucial to understand the pros and cons associated with each franchise business model. Make sure that you thoroughly investigate the options and invest your money wisely.
On the contrary, you would have also heard some franchising failure stories where people lost their money. Although there is a risk of losing your money in running a franchising, it doesn’t mean it will happen to you. To be on the safer side, it is important to perform a careful research on your potential options and make a plan accordingly. Before you make a final decision, below are some of the important questions given by Jim LaGanke that you should ask yourself.
How much I am willing to put in the investment?
Buying a well promoted franchise gives you an opportunity to take advantage of the economic benefits that you may not get otherwise. These benefits include supply chain demand, market dollars, and buying power. However, you’re required to invest your money as well as your time to buy a franchise and run it successfully.
As a franchisee, you are required to attend trainings, set up your store, and find the right staff, and all these can be time-consuming and even hectic. Make sure you have enough time and money to invest in a franchise.
Are my expectations real?
It’s difficult to predict exactly how a business will perform. Therefore, setting up real expectations are crucial while making any investment, and a franchise business is no exception. With the right plan and strategies, you can make your franchise business succeed.
Am I financially qualified?
Before you buy a franchise, consider whether you meet the financial qualifications or not. Make sure that you have adequate liquid capital available to make the investment. Along with this, it is also essential to properly manage the invested capital. Keep in mind that in the initial months of starting a franchise business, you might not get enough returns but with competitive strategies, you will notice an increase in the returns.
Every franchise business operates differently. It is thus crucial to understand the pros and cons associated with each franchise business model. Make sure that you thoroughly investigate the options and invest your money wisely.
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