What to consider before buying a franchise
If you are considering franchising, you are bound to have many questions. We are here to answer them for you, and with you.
We’ll help you discover your natural business skills, and we’ll discuss your life and professional goals with you. You’ll learn about the different types of franchise, and the pros and cons of each. This will help you decide which franchise is best for you today, and which will help you create the future you desire.
Here’s a taste of what our consulting services cover with entrepreneurs and executives who are considering buying a franchise.
Your personality and skillset
It’s important to match your personality and skillsets to a suitable franchise opportunity. We’ll consider what the franchisor is seeking and what you have to offer. We have exceptional experience and success in matching our clients to exceptional franchises that dovetail with their skills, experience, and goals.
The financial side of being a franchisee
We’ll discuss the nuts and bolts of the money-side of buying and operating a franchise. We’ll talk initial investment, cashflow, wages, and taxes. While you’ll have an accountant to help with all this, it makes good business sense to have the background knowledge needed to understand and develop your business plan.
We’ll also consider the amount you need to invest, as well as the potential returns you might expect to make.
Evaluating a franchise opportunity
Investment amount varies from a few thousand dollars upward. Whatever amount you invest, you’ll want to be certain that you are investing in a value opportunity. As well as knowing that the opportunity is right for you, you’ll need to evaluate the franchise financially.
You’ll need to assess the Franchise Disclosure Document (FDD), and consider costs such as the initial fee, other startup costs, equipment, and ongoing costs such as commission or fees to the franchisor.
On top of this, you’ll need to examine the franchisor’s recent finances, understand their growth plans, and consider competition in your location.
What support will you receive?
You’ll also want to consider the support that you will receive from the franchisor. You will likely get initial training to help get your business running, but will you receive other support from the franchisor? Will you be able to access support daily? Does the franchisor offer ongoing help and training?
What will your day be like?
We’ll ensure that you are ready for the day-to-day challenges of being a franchisee – over and above the big-picture strategy that you’ll also need to focus on. From marketing to management, from stock to sales, your responsibility is broad. You’ll need to be prepared to manage and delegate.
Prepare to take advantage of the benefits of becoming a franchisee
When you invest in a franchise and become a franchisee, by preparing well and accepting advice and help on your journey you will prepare to take advantage of the many benefits of investing in a franchise. These include:
- Running a business as an established brand
- Operating to a proven business model
- Managing a business in line with established operating procedures
- Training and ongoing support from the franchisor
- Help with marketing
- Hitting the ground running, selling to customers who know the brand
- Help with marketing
- Increased buying power, because of the franchise
If you’re considering becoming a franchisee, don’t leave your success to chance. Start your journey with the Franchisee Assessment or contact New Ground Consulting to discuss all your options.