Step by Step Guide

Have you ever wondered if you have the personality and skills to be a successful franchisee? There are over 3500 franchise companies operating in the US, each requiring a plethora of different skill sets in a franchise owner. But there are a few key characteristics that you should be aware of to determine if franchising could work for you. Are you cut out to be a successful franchise owner?

Consider the following:

Capital - Are you financially prepared to start your own business, and do you know what that means? Financial investment varies from franchise to franchise. Make sure you investigate companies that fit into your comfort zone. Don't be tempted by those that don't!

Making Connections - A successful franchisee needs good interpersonal skills. A franchisee will need to manage employees and work to retain them. You’ll have to build good-will with your customers and gain their loyalty and trust. If you are truly a people person, you have one of the most valuable assets to successful franchise ownership.

Following a System - Many people think being your own boss requires you to be a true entrepreneur, someone who wants to take charge and challenge each step in the process. That’s simply not true for franchising. If someone has already done the work, tested the procedures and proven that a system works, a clever person will pay attention and follow that system. After all, following a system that works is the essence of franchising. Doing Whatever it Takes - There is just no substitute for hard work, particularly during the first year. A successful franchisee is someone who is willing to do whatever it takes to get the job done. Reducing Risks - Starting a business by yourself is taking a big risk. Buying a franchise reduces the risk. In fact, successful franchisees are typically risk averse. They want to minimize their risk as much as possible and so they choose a strong franchise system with a proven track record.

Before you start looking at franchises, take stock of the most important component of the equation – YOU. By starting with a list of what you have to offer and what you need from a business, you can create a strategy and model for your research.

Ask yourself:

• What skills, experience and interests do you have?

• Consider your past jobs and determine what you liked best and least about them; then make a list of your strengths and weaknesses.

• How much money can you invest and how much would you like to make?

• Are you comfortable managing others or would you prefer to work alone?

• What hours are you willing to work while the business ramps up and what lifestyle expectations do you have after the business is established?

• How do you feel about selling and the sales process?

• Is status a factor in choosing what you do each day?

You’ve started this process by understanding what franchising means and how it can help you own your own business. Next you evaluated whether you have the skills and personality to be both happy and successful as a franchise business owner. Finally, you’ve carefully evaluated yourself and built an individual model that can be used to determine if a franchise opportunity has the components you want. You know what you need to find in a business to match your preferences and desires. You have a picture of what the future will be like for you as a business owner. Now it is time to begin looking at individual companies. You can do this on your own by finding companies on the Internet and doing research, then narrowing down the list to those that seem to best fit your needs. Another way is to work with a franchise consultant who will narrow down the possibilities, giving you a short list of companies who match your skills and requirements. Keep an open mind. You may have your heart set on a particular opportunity, such as fast food, only to find you don’t have the financial qualifications and the business won’t provide you with the lifestyle you are looking to provide for yourself. Often a franchise consultant will suggest a company that you’ve never even heard of or would never have considered. Focus on finding the business that’s a great fit for you, regardless of the particular industry, and you’ll be more likely to experience both success and happiness as a franchisee!