Buying A Franchise Does Not Need To Be Over Complicated

I've been away for awhile focused on business and I'm back now starting with a post about how to select the right franchise business. When someone decides to be self employed there are many decisions and questions to be answered. The first decision is of course to be self employed or not? The second decision is to be a start up or to buy a franchise? Once you have in your mind convinced yourself that being self employed at this time in your life is the right decision and, you have the personal and financial support at home, and franchising seems like a safer bet, then the question is which franchise? This is where most people get confused and bogged down in the decision. Or, make the wrong decision because they look for the easy buck. The truth is that if you find the easy buck business it usually means illegal or low investment generally means low return.

The realty is any business worth your time and money will require you to work. To roll up your sleeves and perhaps take you outside your comfort zone on occasion. Most franchise businesses carry a level of risk. Granted a smaller level of risk than a start up but never the less, there is still some risk. A franchise, any good franchise, is about a proven system. The theory is; if you follow the system you will be successful. This is true but what if the system is only proven in one country? What if the system is only proven with one type of owner? We are not all the same. A franchise that is internationally successful is generally a franchise system that works well in many cultures with many personalty types. How long has the franchisor been franchising? If not many years with less than 500 franchisees how proven is there system? If you buy this franchise they may learn or improve their system on your costly mistakes.

What industry is the franchisor positioned? Is it a fast growth industry with little competition like the Internet or in fast food where not only is there local, national and global competition, you also have a changing society demanding healthier choices.

To earn 6 figures or even 7 figures net profit annually in a franchise you generally need to own more than one franchise. This is due primarily to high overhead, (investment finance costs, buildings lease/mortgage, equipment purchase/rent/maintenance, staff wages, inventory carrying costs and the cost of loss of inventory, etc), combined with low profit margins - well you see the problem. Don't worry. It's not all doom and gloom. There are franchise opportunities where the initial investment is reasonable, the overhead is low and the profits are great. You just need to be focused on this in your search.

Most importantly, if you love what you are doing then it is not a job. If you enjoy what you are doing the money will come. Knowing all of this the best advice I can give you is to start with the Entrepreneur Magazine top 500 rankings. They have been ranking the best of the best for about 28 years and every franchisor wants to be on the top 500 listing. Once you have decided what industry you want to be in, then it can be as simple as asking yourself, can I afford the number 1 company in that industry? If not, does number 2 fit in my budget? Perhaps there is another industry I can work in where the training and support is so substantial that my lack of experience and knowledge is not a problem? Bottom line is; if you want a franchise business and want to protect your investment then review my advice today and then invest in the franchise you can afford which is ranked by Entrepreneur Magazine as the the best and not to be afraid to roll up your sleeves and learn and grow outside your comfort zone.