The process of choosing and investigating a franchise may will take a lot longer than you think.
But here’s the thing; if you want to do it right, you need to tackle things step-by-step. Especially if you want to choose a franchise opportunity that’s going to be profitable.
In this post, I’m going to show you what those steps are.
Be Honest With Yourself
The first step-the first thing you need to do, is ask yourself this very important question:
“Are you a rule-follower?”
It’s imperative for you to answer that question truthfully.
That’s because the franchise business system is solely designed for people who are willing and able to follow rules.
Think about it; there’s a reason you’re handed a 200-300-page operating manual (the rule book) to learn and follow when you become a franchisee.
Another way of putting it: Today’s franchisors aren’t looking for entrepreneurial types to become franchisees. They’re looking for people who appreciate a proven system-and who will follow it as it’s laid out.
Set A Budget
Time is a valuable commodity. Once you’ve used it, it’s gone forever.
That’s why it’s important for you to only spend time investigating franchises you can afford.
How bummed out would you be if you found a perfect franchise opportunity for you-only to find out that it’s totally out of reach, financially?
Tip: If you’d like to avoid a depressing scenario like that, make sure you know where you stand financially before you begin your search for a franchise. Then set a budget for what you’re willing to invest if you find a franchise that fits what you want in a business.
Make A List
The next step in the process is an important one. Here’s what you need to do.
Start by grabbing a pen and paper. You’re going to need both, as you’ll be making a list.
On one sheet of paper, list what you feel are your best skills. Write down everything you’re good at.
Next, on another piece of paper, list your most dominant personal traits.
(Here’s a list of traits to get you started.)
Start Searching
Armed with your list of strengths/personal characteristics and budget, it’s time for you to start searching for affordable franchise opportunities that will allow you to use your top skills/personal traits.
So, fire up your computer, put on some comfortable clothes, grab a beverage, and head over to a franchise portal that lists franchise opportunities that are currently available.
Tip: Make sure you find a website that allows you to search by investment and industry type, as this will save you a lot of time.
Finally, try to choose between 3-4 franchise opportunities that interest you-and also fit what I mentioned above.
Request Information/Start Research
This two-part step separates people who are “curious” about becoming the owner of a franchise, from those who are determined to be their own boss.
All things considered, the simple act of filling in a “Request More Information” form for a franchise concept you’re interested in is way bigger-and way harder than you think.
On one hand, you’re just providing a little basic information to a franchisor.
On the other hand, you may be setting a chain of events in motion that will forever change your life.
Are you ready?
In the event you do request information from a franchisor or two, you’ll quickly discover that you’re in research mode.
Specifically, you’ll be engaged in weekly conversations with franchise development representatives.
If you like what you hear, (and you follow my directions) you’ll eventually start talking to existing franchisees, so you can get your questions answered.
Tip: If you’d like to find out the exact questions you need to ask franchisees, including how to ask them so you can get the real facts about the franchise opportunities you’re looking into, you need to grab my online course, “How To Buy A Profitable Franchise.” Course Details
The Headquarters Visit
One of the things most franchisors do is hold what’s called a “Discovery Day.” And attending one is a major step.
In a nutshell, a Discovery Day is attended by serious franchise candidates who have been invited to franchise headquarters.
These one-day events are a great way for you to meet the franchise team. You’ll spend time in each department, and in most cases, you’ll sit down with the executive team-including the CEO. This will be your opportunity to get some of your most burning questions answered.
But don’t kid yourself. Everyone at headquarters will be sizing you up, too.
Tip: Only accept an invite if you’re super-serious about becoming a franchisee. Don’t go if you’re still “kicking the tires.” That would be a waste of time for all involved.
The Legal Step
Safety is my focus when I’m working with clients.
While I do everything in my power to teach my clients powerful research techniques and guide them through the entire franchise purchasing progress, I’m not an attorney.
That’s why I always recommend they hire a competent franchise attorney. And you should, too.
After all, who better to explain the legalities as they pertain to franchising than the person who writes some or all of the legal documentation contained in franchise documents and franchise contracts.
The Money Step
I’m going to assume you followed my lead regarding coming up with a specific budget. Now it’s time for you to decide how to pay for your new franchise business.
Generally speaking, most of today’s franchise buyers leverage their money to pay for their business. In other words, they get a small business loan to help pay for a portion of their total upfront investment.
These days there are all sorts of loans available.
They run the gamut from crowdfunding and family loans, to formal small business loans that can be obtained through banks.
But before you decide how you’re going to pay for your franchise business, make sure you have put together a business plan. Doing so shows your lender that you’re prepared.
The Final Step
At this point in the process, there’s really only one more thing you need to do.
You need to make a yes or no decision on the franchise business opportunity you’ve been learning about and researching all this time. And the choice is yours.
If you’ve done your homework, if you’re within your budget, and you’re ready to put in really long hours in order to reach your dream of becoming your own boss, I have complete confidence that you’ll make the right decision.
One more thing: You may-for whatever reason, decide to not buy the franchise you’ve been focused on.
If that’s the case, it’s 100% okay.
In time, you can always begin your search for the right franchise again.
Questions?