Home / Blog / Four Things to Consider When Choosing a Franchise

Four Things to Consider When Choosing a Franchise

Four Things to Consider When Choosing a Franchise

You’ve finally made the decision that you’d like to own your own business, and you feel like franchising might be the way to go.  You might  even have some idea of what kind of franchise you would like to operate. But have you thought through what REALLY matters in choosing the right concept to achieve your objectives? Before beginning your franchise journey, it’s useful to do a deep dive on your goals and expectations as well as your interests, skills, and financial capabilities when it comes to choosing a franchise.

What is your income flow like?

This is one of the first and foremost considerations you need to work through.  Think about how much income you need and the timeline of those income needs. For example, do you have the financial runway to pay your bills for the first 12-18 months of your startup?  Or even 24 months?  Various businesses have slower ramp up periods but do extremely well once mature.  Other types of businesses will cash flow very quickly but may not be what you are looking for in the long run.  We can help you sort through all of this and are experts in funding given our financial services backgrounds.  It’s important to us that you have realistic expectations and adequate financial resources.

What is your current asset situation?

Your current balance sheet will determine how much of an initial investment you can commit to your franchise – and how much funding you will qualify for.  Again – we can pencil this out for you in one phone call.  Different franchises require different levels of net worth to qualify and we will need to have this important conversation to establish “budget”.  We will also likely want to get you prequalified to early on uncover any issues that may arise.

What are your interests?

Interests don’t always matter.  Some people are simply interested in ROI.  If, however, you are going to be an “owner operator” It is so much more pleasurable to be completely engaged and invested in something you at least enjoy. Passion and commitment are two “must haves” to be a successful business owner – usually you will get passionate about your business, even if it’s in an area that you previously had no exposure to – but not always.  So we will encourage you to dive deep into what the owner does on a daily basis in order to understand where you’ll be spending your time, at least initially.

What are your strengths?

When it comes to your strengths, assessing your skill sets and management style is imperative. Look for business models that can capitalize on those strengths – and compensate for any weaknesses.  You likely know what’s in your wheelhouse – but if you don’t we have some assessment tools that will help us drill down in that area.

Learn more and read the original blog “The Four Important Elements You Need to Consider When Choosing a Franchise.”