5 Questions to Ask Before Investing in a Multi-Unit Franchise Business Opportunity
By Adam Goldman, Franchise Consultant
Entrepreneurship is hot! Just go to any Multi Unit Franchise Expo. The aisles are crowded with potential multi-unit franchisees. More and more people want to be self-employed; preferably sitting at home and earning passive income. Being your own boss and having flexibility in your schedule are two of the many benefits that multi-unit franchise entrepreneurs enjoy. If you wish to become a franchise owner, you need to like being your own boss. Sounds good, right? Before you “take the leap” you must ask yourself the following 5 questions:
1. Do You Have a Plan?
When you are on your way to kick-start your own company, do not scurry into any hasty decision. Meticulously chalk out your vision, mission and the philosophy of your business. This will be the stepping stone to the success of your commercial undertaking. Create a strategy about how you want to achieve your goals and hire quality people who can help you to attain these goals.
2. Do You Have Access to Enough Capital?
Being well capitalized is so important in starting a business. Everything tends to be ten times harder than you expected and you need a cushion to deal with the unexpected. If you don’t have enough money set aside to deal with adversity, you are setting your future as a franchisee up for failure. Perhaps you need a financial partner.
3. Is Your Family on Board?
Is your spouse really on board with this decision? Without the support of your loved ones, you can’t become a successful multi-unit franchisee. Make sure that they are ready to accept the challenges that will come your way. Business undoubtedly demands a lot of time and you might have to spend many hours in the business in the initial stage. When you are successful, all the sacrifices will be worth it!
4. Have You Chosen The Right Location(s)?
In Real Estate, they say that the three most important things are location, location, and location. Location plays a great role in determining the success of your business. A wrong location can jeopardize your franchise investment. On the other hand, a great real estate decision is a critical component for success in your new venture. Choose your franchise unit location(s) wisely. Talk to industry experts and the franchisor. If you set up your business close to your competitors, studies show that you have higher chances of success.
5. How Committed are You to Becoming a Franchisee?
Grant Cardone says “you need to find new problems.” Whenever someone starts something new, there are always naysayers. You will probably face “haters” who will try demotivate you. Do not let these negative remarks get the better of you. Don’t give up!