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Not every business idea is franchise-worthy and not every entrepreneur is franchise material. Do you have what it takes?
Certain traits are needed for success as a franchise owner. It requires someone who is a good student, willing to follow a proven plan and committed to working hard. Answer the following questions honestly to determine whether you are cut out to run a franchise.
- Are you coachable? The first rule of being a good franchisee is that you will have to be an avid learner. When you buy a franchise, you buy the business model of the franchisor and you have to learn it in the same way the franchisor is teaching it you. So, even if you have years of experience in the subject, you have to behave like a newcomer when you answer to a franchisor. Can you put aside your own plans and follow someone elses? Many franchisors welcome input from their franchisees, but at the end of the day, it's their business model, not yours, that you're following.
- Are you hard-working? Just because the franchisor helps with many areas of running the business, don’t think you can coast. There's much homework to be done before you even choose a concept. Then, there's the due diligence period where you study the Franchise Disclosure Document and the Franchise Agreement. There's hiring, site selection, lease negotiation and build out. Now, you open your doors and you'll likely be there most of the times when the doors are open, until you're confident your staff is well trained. Even when you are a part-time owner or an absentee owner, you are supposed to undergo the training and attend the annual meetings and seminars, and not to mention overseeing the office from time to time. If you shy away from extra work, franchising is not for you.
- Are you innovative? The franchise business has a given business model to follow. So, it becomes easier just to follow the rules and earn handsomely. But if you do that only, then chances are that you won’t progress beyond a certain level. You can go places as a franchisee, but for that, you have to be innovative enough. Each market has its own quirks and shortcomings; you should mold the business model accordingly. Franchisors also prefer franchisees who think for themselves. So, being innovative is certainly a criterion for a good franchisee.
- Do you have necessary skills? General business skills are what most franchisors are seeking. But it helps if you can pinpoint a definite category where your skills and experiences can work the best. For example, leadership skills are must for maid service and handyman service franchise opportunities while excellent communication skills are essential for business related franchises. Other franchise categories prefer people with experience in that industry. Food service is a great example of this. Running a restaurant is so complex that, no matter your business background, it can be difficult to walk into a food franchise if you're never been in a restaurant kitchen.
- Do you have the requisite money? Money may not be the only criteria, but it’s certainly the most important one. So, calculate your net worth and liquid capital available and look for an appropriate franchise business for sale offer accordingly. Don't stop there, though. You might have other options to finance your franchise.
There are hundreds of excellent franchise opportunities out there. The business is waiting for entrepreneurs who have the skills and mindset to join. If that's you, what are you waiting for?
The copyright of the article Are You Franchisee Material? in Entrepreneurs is owned by Sandy Smith. Permission to republish Are You Franchisee Material? in print or online must be granted by the author in writing.
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