If you’re wanting to own your own business but don’t quite have a unique business idea that you want to build from scratch, opening up a franchise could be a great option for you. However, simply knowing that you want to start a franchise business doesn’t necessarily make it easier to know what type of franchise you should begin with.
Opening the right franchise is a huge decision and can have a big impact on the rest of your life. So to help ensure that you make the right choice in this area, here are three tips for picking the right franchise opportunity for you.
Know What You Want Your Role To Be
Before you begin looking at an individual franchise that you might be interested in, you should first determine what you see your future being as a franchisee. Not all franchises are going to be run the same way or require the same amount of work on the part of the owner, so knowing what you want in this aspect of your business can really help you narrow down your search.
According to Marci Martin, a contributor to Business News Daily, there are usually two types of franchise owners: absentee owners and owner/operators. If you’re really wanting to work in the business and be around for all the big and little decisions that are made on a daily basis, you’ll likely want to find a franchise opportunity that will allow you to be an owner/operator. But if you’re strictly wanting to manage things from a higher level, then you’ll want to be sure you pick a franchise that allows you to be more hands-off.
Buying New Versus Buying Existing
Once you know the type of franchise you’re wanting to own, you’ll now have to find the right opportunity to purchase it. In general, Benilyn Formoso, a contributor to Fit Small Business, shares that you can either acquire a franchise by buying a new one or buying out an existing one.
When you buy a new franchise, you’re essentially starting from scratch and are able to build the business up to whatever you can make it. But when you buy an existing franchise, you get to take over an already established business, which means taking on both its successes and its failures.
Determine Your Endgame
Something to factor into your franchise decisions is what your end goal is for opening your franchise in the first place.
Peter Vander Bos, a contributor to Inc.com, shares that by having your exit strategy thought out before you even buy your franchise, you’ll be better able to make decisions that will get you to where you need to be. So whether you’re wanting to sell your business for a profit in a few years or you’re hoping to hold onto this business until you retire, knowing what your endgame is can be very helpful.
If you’re considering opening a franchise, use the tips mentioned above to help you pick the right franchise option for you.