Franchise Checklist
Years of experience has shown some consistent skills, attitudes and disciplines demonstrated by successful business owners. Franchise Matchmaker has an obligation to honestly assess our applicants and accurately educate them on the realities of business ownership. The questions below are designed for you to take a hard look at your current skill set and decide if business ownership is right for you at this time.
1. Historically, have you demonstrated the long-term discipline to stick with a preset plan and successfully reach your goals? What franchises offer is a proven business model and system of operation. The most successful owners follow the model closely and duplicate the business in their location.
2. Do you have, or do you have access to, enough cash to start your new business? Starting a business requires cash! Depending on the business the amount necessary can range but you should expect to have $10,000 - $100,000 available cash to start your business.
3. Can you qualify for financing? Unless you are capable of paying cash for the entire start-up, in most cases you will need to qualify for third party financing. The average franchise total investment is $250,000 and their are several options such as SBA, conventional, IRA and 401 K loans and lines of credit. Some home-based franchises have a much smaller initial investment ($20,000 to $50,000) and may be a better option if financing is an issue for you at this time.
4. Do you have an income stream or plan to support yourself for months until your business is producing the income necessary to support your financial obligations? Undercapitalization is the number one reason for business failure. You must have a REALISTIC plan for how you will support yourself until your business is generating cash-flow, then double what you expect and make sure you can make it until then.
5. Are you prepared to do every job necessary in your business? You may be called upon to carry out duties from taking out the trash to making a live presentation to a large group. Your business will most likely require a wide range of skills. While you may not be best suited to do them all, it is critical that you be enthusiastically willing to perform all duties. The truth is, with your business it will go no farther than you are willing to take it!
6. Do you have unwavering drive and determination to create a strong, viable business? Persistence may be the single most critical attribute to developing a long-term profitable business. Your business WILL experience hard times. It is during those times that your willingness to persist may be the only thing that gets you through!
7. Are you a creative, ‘out of the box’ thinker? While it is critical that you work the franchise system, it is also important that you find creative solutions to challenges that most surely will come. You must know your business, your competition and your core strengths, then use that information to find the best direction for your business.
THE DIFFERENCE BETWEEN A DREAM AND A GOAL IS ACTION!
If you can honestly answer the above questions positively you may be ready! Take the Franchise Matchmaker Quiz and we will get started!
If you’re ‘not ready’, that’s OK. Now you know what you must do if owning your own business is your goal. What you do now will be an important indicator of whether you ever own your own business or if like most, it remains just a dream.
