In this post, I’m going to teach you 5 things you need to do before you start searching for a franchise to buy.
In this case, preparation is key.
In other words, the time to get all your ducks in a row is before you start your search…not during your search.
5 Things To Do Before You Start Your Search
1. Start reading
I want you to read books about:
- Starting a business
- Business plans
And if you really want to get a leg up, read an accounting book.
Reading books on the above topics will help you get a better understanding of business, and what it’s going to take to succeed.
“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” — Dr. Seuss
Before you take the time needed to search for a franchise to buy, it’s important to see where you stand, financially.
The best way to do it is by putting together a net worth statement.
Generally speaking, the most time-consuming part of doing a net worth statement is gathering all the information you need.
You’ll need your mortgage loan and credit card statements, information on all of your investments, and more. In a nutshell, you’ll need to gather everything that lists all of your assets and all of your liabilities.
Once you have everything, you can use a calculator* to come up with your net worth. Here’s an article* if you need more details on what numbers you will need. (Make sure you save a copy and print it out after it’s calculated.)
3. Learn about small business loans
If you’re like most of the people who are considering franchise business ownership, you’ll need a small business loan for the lion’s share of your startup capital needs.
That’s why it’s crucial to learn all you can about the types of loans that are currently available. And the information you need is only one-click away.
Just go to this U.S. Small Business Administration webpage for comprehensive loan information, including SBA-guaranteed loans, eligibility requirements, and a list of lenders you can contact.
4. Share your interest in franchising with your family
Transitioning from employee to franchise owner is a big deal.
That’s why it’s essential to discuss what you’re thinking of doing with the people who will be affected the most; your family.
And when you have the discussion, don’t hold back. Tell them why you want to be your own boss. Tell them how you’re going to get the money. Tell them how careful you’re going to be-and that you promise to do great research.
In the long run, as long as you’re upfront with them, and communicate with them during the entire process, chances are they’ll support your decision.
The last thing to do, before you start your search for a franchise opportunity that may turn out to be a good fit, is disconnect.
Specifically, take an internet-social media break. Spend a few days with you.
Refrain from answering emails, logging into your social media networks, or reading articles about franchising-or business. Instead, spend some time away from your Smartphone. Maybe you can spend time outdoors, or at least somewhere that will provide a change of scenery. But, it has to be distraction-free.
Doing what I just recommended will force you to take a hard look at what you’re thinking of doing.
To sum things up, deciding to become the owner of a franchise business is a big decision. The preparation you do before you begin your franchise search really matters. That includes talking about your idea with your family, and spending a period of distraction-free time alone. Combined, all these action items will go a long way in setting yourself up for success as the owner of a franchise.
(The Franchise King, Joel Libava, is the author of “Become A Franchise Owner.” He specializes in in teaching people how to choose, research, and buy franchise opportunities that can be money-makers. Learn more.)
I wrote this article for the U.S. Small Business Administration. Used with permission. https://www.sba.gov/blogs/5-things-do-you-search-franchise