ON FINDING THE RIGHT FRANCHISE FOR YOUR LIFESTYLE AND BUDGET
BY WALTER DASZKOWSKI
Many aspiring business owners are drawn to buying a franchise— not least because such businesses harness an established brand’s systems and support. However, for many, finding the right opportunity is a challenge.
BEFORE BUYING A FRANCHISE, ASK:
Do I like being in a supervisory role?
Do I enjoy administrative tasks?
What type of time commitment do I want to dedicate?
What level of income do I need to enjoy business ownership and sustain my desired lifestyle?
DEFINE PERSONAL GOALS
Other critical questions focus on the initial investment and personal/financial goals. Why do you want to buy a franchise in the first place? Is it the desire to own a business to improve work-life balance and/or use your skills and talents to increase net worth?
Many people set goals only to fall short of achieving them, which can reinforce negative feelings toward your abilities. So, define realistic, attainable, and measurable goals from the start. This will allow you to decide what type of franchise and business model fits best.
Given the countless franchising opportunities available, picking the right one can seem overwhelming. However, once you know yourself—aspirations, skills and talents—you are better equipped to remove poor candidates.
Focus on models and industries that pique interest and align with passions. The options are endless: from a home-based travel agency to business services, cleaning & maintenance and retail to education, real estate, fitness, and technology.
Next, create a short list after factoring in product-market fit, location, industry, profitability, cash required, initial investment, support/training, brand recognition, and community. Also, make certain you identify any and all hidden costs (such as royalty fees) and required marketing expenditures.
As a potential franchise owner, pay attention to added value as well. Does the business offer ongoing training, a supportive community of fellow franchisees, access to business advisors, etc.? What type of official support team is available for dedicated assistance?
CREATE A BUDGET
Needless to say, you need to be aware of ownership costs. Talk to existing owners and read through franchise disclosure documents (FDD) to discover details on projected revenues and profit margins, fixed costs, as well as variable and semi-variable costs like royalties and advertising fees. Once you understand the ongoing (monthly or quarterly) fees, you can factor in additional operating expenses. It is vital to know all possible costs.
Making the leap from employee to owner can offer many benefits, but you need to be comfortable with all parameters of running a new business in order to reap its true benefits.
Daszkowski, Tompkins, Weg & Carbonella, P.C.
278 NJ-34 #1,
Matawan, NJ 07747
1303 Clove Rd,
Staten Island, NY 10301