If you never owned a business before than you probably don’t understand the emotional aspect of dealing with risk and the unknown on a daily basis. Entrepreneurs are experts at handling problems and taking responsibility. They seldom blame others and when they get knocked down, they have the good sense to get back up, brush themselves off and get back to work. Understanding how you will react to circumstances will help you continue to more forward. Before you move into a franchise business you should have a handle on your ability to handle the ups and downs of life. If you haven’t been very good at a handling issues in the past, then odds are you’re not right for business ownership. Perseverance is a necessary skill if you are going to reap the rewards of franchise business ownership. Next we’ll talk about attitude, ability and how to leverage it.

Digg

Stumble Upon

Del.icio.us

Buzz

What makes someone good “franchise material”? Good question. Statistics show that franchise businesses may have a greater potential for success than start-ups, but how do you know you’ll “fit the mold” of a franchise business concept?

Let’s start with a few general guidelines. Good franchise owners have an ability to follow a system. This may be the number one consideration of franchisors. They are looking for “team players” who recognize that they are part of a system and are willing to follow it. If you are very independent and like to do things “your own way” then perhaps franchising is not for you. BTW- franchisors don’t seek out people with this trait because they want to dominate you, not at all. They need it beacuse they know their system works and that may franchise failures occur because owners don’t follow the system. Somehow these owners thought they were “smarter” than the franchisor and wanted to re-invent the system. Makes me wonder why they bought the franchise in the first place? Maybe they didn’t understand the scope of the business model to begin with.
So how much “following” do you have to do to be a franchise owner you ask? Well, it depends on the franchise concept. Some franchises are far more flexible than others. Here is where you need to take a close look at the FDD (Franchise Disclosure Document) and study the business model so you can choose a business that is in your personal comfort zone. If you’re not familiar with FDDs, then it’s a good time to enlist the help of an advisor. Franchise consultants are experts in the franchise industry and they can educate, advise and assist you in your investigation to find the business that fits your interests, skills, lifestyle and investment level. Remember that a franchise business is “awarded” not purchased. Franchisors want their owners to be successful so they choose who they allow into their systems very carefully. Franchisors interview candidates and vice versa. Only when both parties agree that there is a good synergy is a deal offered.
Next posting I’ll talk about emotional issues. Stay tuned!

Digg

Stumble Upon

Del.icio.us

Buzz