Wondering how to become a franchise owner? Here are the 5 steps to buying a franchise, and the top considerations you should make before investing.
One of the great advantages of learning how to become a franchise owner is the knowledge that you will be going into business for yourself, but never be alone. The right franchise will provide you with the freedom but also the support you need to succeed.
DO YOUR RESEARCH
Take your time to consider the pros and cons of owning a franchise. If you have committed to the idea of owning a franchise, you still need to pare down your potential investment by industry, concept, startup costs, and various other factors. Finding the right franchise for you can be an extremely personal process, but here are some handy things to keep in mind, regardless of the market:
A Strong Reputation. Whether a franchise has 10 locations or 10,000, it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors.
Solid Financial Track Record. It’s worth researching a franchisor’s history of profitability, if they’ve managed to maintain financial strength, and where or why they have faltered.
A Growing Market. Choose a market that is positioned for opportunity and growth for years to come. A hot and happening concept may be great in the short-term, but franchisors with long-term focus and growth potential will provide you with a richer business experience.
Size Up the Competition. Many franchisors have already done the market research to find the ideal locations for their brand, but it’s equally important for you to do your own research. By getting a sense of what similar business concepts do well in certain areas, which others seem ill-positioned, and what neighborhoods are underserved by certain markets, you can hone in on the type of franchise that will work best in your community.
Once you've chosen a franchise that aligns with your goals, it's time to begin the application process. Just as you’ve done your research to determine the right franchisor for you, they will be deciding whether you are a good match for them. Your prospective franchisor will be interested in knowing why you have chosen to invest with their brand, the level of research you have done, and what your plans are for running your business. Many franchisors seek enthusiastic, like-minded partners, so now’s the time to show your passion and commitment.
WRITE YOUR BUSINESS PLAN
Writing a business plan doesn’t have to be an overwhelming process. Once you have identified a few key factors and goals, with a little dedication, it basically writes itself.
While there is no set length for a business plan, keep in mind that it’s best to keep it concise and engaging while relaying as much information as possible to give potential lenders or investors confidence in your vision.
You want to accentuate the positive while acknowledging any challenges your business may encounter, and how you will address them along the way. A huge benefit of owning your business as a franchisee is the fact that a lot of the research and legwork has already been done for you.
The franchise disclosure document (FDD) provided by the franchisor will offer you crucial information to help you complete your plan, including the brand’s background, description of the target market, competitive advantages, marketing plans, and a layout of your startup and ongoing costs.
SECURE FINANCING AND SIGN WITH YOUR DREAM FRANCHISE
You may need sufficient starting capital to qualify as a franchisee, which might require some outside assistance. Whether through personal equity, partnerships, banks or other finance companies, or SBA loans, the costs and fees associated with the right brand makes your dreams attainable.
PREPARE FOR LAUNCH
The moment you sign your franchise agreement, your new partnership has begun. You have put in considerable work and dedication to get you to this point, so now is the time to trust in your franchisor to get you over the starting line and set you up for success.
With Tailored Living, this means that you will be provided with the training, ongoing support, marketing expertise, and proven franchise model to get your business up and running and make your investment and dedication go the distance.
Tailored Living is a preeminent home services brand that provides investors with all the power and capabilities of a winning franchise. With home services more in demand than ever, Tailored Living offers a promising investment opportunity for entrepreneurs seeking to invest in a business that is bustling with potential.
To learn more about Tailored Living and franchising opportunities in your area, please visit us.