One aspect of the American Dream is to start your own business. At some level, everyone wants to be their own boss. Chances are, you or someone you know has seriously considered it, or even taken the leap. For some, the best option is to buy a franchise in an already established company.
There are plenty of things to consider before starting your own business, especially when buying a franchise. Here are five of the questions you should ask yourself (and the company) before making your decision.
What’s your passion?
It’s a proven fact that people work harder and more efficiently when they love what they do. Heading into work every day and dreading the eight-plus hours ahead is not going to elicit much productivity. So, ask yourself what you love to do, and go do it.
If you hate meat and cheese, you probably don’t want to franchise a Dominos or other pizza restaurant. On the other hand, if you love animals, starting a Husse franchise wouldn’t seem like work to you, it’d be more of a passion project.
Does the product stand out from the crowd?
Having a stellar product to sell is one of, if not, the most important things when starting a business. If you know the product is something everyone should have, you can get your full force behind it and really buy into it. If not, you might start questioning the purpose of the business.
What is going to make people want to buy your product over the ones they have been buying for their entire life? If there is nothing you can think of, you might want to take another look to see if it is is something you should invest in.
What are the costs associated?
You’ll need to research what the franchise cost is for the business you are trying to start, and how much liquid capital you should have available to you.
For example, to become the Pennsylvania “Master” Franchisee for Husse, there will be an initial investment of around $150,000, but that gives you exclusive rights to the product in the entire state of Pennsylvania. For a franchise like Papa John’s, you need to have a net worth of over $250,000, a $25,000 franchising fee and the capital to rent or buy a brick and mortar, along with all the equipment.
How many customers do you need to make a profit?
Profits are the main reason anyone gets into business, so of course you need to ask about them. If you need 10,000 customers to break even, it might be hard to make any money in the first few months or even years. If you only need 100 customers to get back to even, you’ll have a much better chance of making real money right away.
Are there training and support programs available?
What does the chain of command look like if you have questions or need help? Is there someone dedicated to a region of franchisees (like Husse’s Master Franchisees are) to cater to wants and needs when they arise? Training and conferences on the product and business itself can be very helpful when building something from the ground up, so it would be resourceful to think about what’s already in place.
Husse, a Swedish pet food producer that delivers individually tailored food right to customer’s homes, is finally coming to Pennsylvania and is looking for a “Master” Franchisee. If you think that Husse might be something for you, e-mail email@example.com and explore your opportunities.