Owning a franchise in the current recovering economy is probably a smart move. The industry grew in 2011 when compared to 2010. And, a decent rate of continuing growth is expected.
Technology franchises in particular are primed for healthy growth.
While franchising may be an interesting opportunity to look into, obtaining ownership of one is challenging. The main roadblock is financial. Purchasing this type of business routinely costs six figures and often seven.
It also requires a ton of hard work, and it may take three or more years before you notice a profit.
While you consider a franchise business for sale, research the industry carefully. You can own one in just about any sector or industry imaginable.
Think carefully about what skills you have and what you really enjoy doing on a daily basis. Analyze the prospectus it provides.
Be sure to know your local market so you don't pick a company already prominent in the area. At the same time, keep in mind it must have a good potential to profit.
After you know which type you want, develop a business plan and attempt to secure financing. You may need a pro forma statement. This document is prepared by an accountant and projects profits and expenses for companies.
The more precise your plan is, the more likely you are to secure financing. But, be ready to be rejected, as banks turn down even very well though out ideas.
Hire a strong team of employees. Be sure they are experienced. More importantly, make sure they possess a strong initiative and desire to learn. You need to spend your time on operations, not managing employee relations.
Finally, set realistic and achievable goals for your company. Goals will help you stay mentally focused so you perform your best. They are also very motivating when you reach them.
If you don't reach them, then you can rethink your strategy. With continued determination, you'll eventually get to where you want to be.
If you're considering buying a franchise business, keep in mind the high startup costs. Selling a franchise business, however, should be relatively easy. The market is strong and expected to continue to grow.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .