4 Questions to Answer Before Pursuing Franchising
When considering starting a business, there are many reasons to pursue franchising as a business strategy. It’s a smart approach for entrepreneurial, ambitious individuals who don’t want to reinvent the wheel and create a new business from scratch. Franchisees who choose a successful system receive a proven model that comes with built-in brand recognition, substantial training, strong, ongoing support, as well as a product or service that is already proven.
But before taking such a big step, here are four questions to ask yourself.
What are my strengths?
Successful franchisees are comfortable with – and attracted to – the idea of following a proven system and operating within a set of guidelines.
Do our interests and values align?
After going through the process of exploring how the franchisor supports the franchisees with the brand, operating systems, and ongoing support, you should get out there and talk to franchisees! Visit them in their locations and ask them why they enjoy working in their business, and what life and work has been like since the beginning. Existing franchisees are often the most valuable resource that can help you determine if an opportunity is right for you. Make sure to talk to operators at all tiers of the company and ask what “they” are each doing to grow their business. Ensure you have a high level of confidence you are equipped to navigate the highs and lows that come with growing a business and being successful.
How is my business going to stand out?
Every industry will have competitors when you start and after you launch if the concept is a strong one. Thus, it’s important to do research on the concept to ensure you see differentiators clearly and have a level of comfort you can articulate and leverage them. A successful franchise fills a market gap to ensure ongoing business.
Am I financially prepared?
Beyond the initial franchise license fee and start-up costs, a potential franchisee should be prepared to adequately fund not only their business but also their personal expenses. Take a good look at the Franchise Disclosure Document (FDD)’s Item 7, which lists a franchise’s additional working capital. Ideally, you should have access to capital that will cover personal and business expenses for six months to a year or longer depending on the business model.
If you’re interested in a franchise opportunity that thrives off of the entrepreneurial ambition of its satisfied franchisees in a growing industry, we encourage you to check out the Bottle & Bottega franchise opportunity. Our talented team of franchisees serves markets from coast to coast and is growing.
Take the first step to explore franchising with a reputable, proven brand that offers top-of-the-line support, an inspiring atmosphere and multiple revenue streams by clicking here.Back