Opening a franchise can be a great opportunity from a number of perspectives. It can be a great investment, it can be a crucial life change, and it can be fun! But, opening a franchise is also a pretty significant investment for most people. You don’t want to go through all of the time and effort to find a franchise, put down the necessary money, and then realize that the franchise wasn’t right for you. Here’s a few things you should watch out for while hunting for your franchise and some tips on how to avoid them.
Don’t Spend Beyond Your Means
It seems obvious but it’s something you need to be aware of. Make sure you have a good idea of how much you are able to spend on your franchise and how much you can expect the franchise to make. This doesn’t mean that you are limited by the financial resources you have one hand because there are many great options out there for financing a franchise, but it does mean you should be very diligent when considering these options. As we’ve talked about in the past you should always analyze a franchises’ Franchise Disclosure Documents carefully before investing in a franchise. These can give you good insight into how much you can reasonably expect your franchise to make in a given year and can give you an idea about what various fees are associated with operating the franchise. If you figure out how you can safely finance your franchise and have a reasonable idea about how much your franchise can make then you should be in pretty good shape from the financial side of things, but that’s not the only potential consideration when opening a franchise.
Don’t Blindly Dive In
The first point I made ties into this, but you need to make sure you’ve done your research before you go ahead and sign a franchising agreement. And that doesn’t just mean from a financial perspective. There are so many other aspects in running a franchise that you need to understand before you get started. Most of this information can be found in the Franchise Disclosure Documents. Some of the most important things you should take a look at would be any legal issues the franchisor might have and the churn rate of franchises. Both of those could potentially be pretty significant red flags that might make you want to reconsider whether or not you want to open that franchise.
Don’t Do Something You Don’t Love
This is a big mistake that a lot of people make with their careers, whether it’s for an a college grad going into entry level job or for people looking to open their own business. If you’re going to make an investment into a franchise you should be passionate about what you’ll be doing. Running your own business can be a lot of work and can be stressful at times. But if you are passionate about it then it can be incredibly rewarding.
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Quick and Easy Tools for any Entrepreneur
****Entrepreneurs are an interesting breed. Making it as your own boss isn't just about being a savvy salesperson or a great leader. It's about thinking on your feet, making snap decisions, and knowing how to network effectively to positively brand yourself and your company. Sometimes it can get overwhelming to have information coming in from all sides, while trying to bring in new clients and grow your business. That's when the most savvy entrepreneurs turn to a few reliable old "tricks" to ensure they're not letting anything slip through the cracks.
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When Motel 6 conceived of the idea for a campaign in the mid-1980s, Bodett worked on NPR’s All Things Considered program. The Richards Group, a Dallas- based advertising agency, was hired by Motel 6 in 1985 and thought Bodett would be an excellent spokesman for the chain because of his warm and friendly vocal style. Hired in 1986, Bodett ad-libbed the line, “We’ll leave the light on for you”while in the recording studio for the first time and the slogan was both an instant and lasting success, staying with the chain for over 25 years and counting.
How Much Money Can You Make?
One of the most common questions prospective franchisees have when looking at a franchise opportunity is: "How much money can I make in this franchise business?" It's a reasonable question considering the investment of time and money required to buy and run a franchise business.