| When the first idea enters your mind to start your own | | | | marketing materials and company specific paperwork |
| business it begins a quest for information that leads to | | | | is just one example that will add costs up quickly. |
| many questions. These questions and answers lead to | | | | Another situation to evaluate is how much money |
| many more questions that often end the quest before | | | | could be saved by not making mistakes and "learning |
| it ever has a chance to get off the ground. "How | | | | while on the job." You are looking for a concept that |
| much money will it take?"; "Do I need a partner?" and | | | | will give you the security and potential savings that |
| "Should I form a sole Proprietorship, Partnership, Limited | | | | give you the foundation you are looking to build upon. |
| Liability Corporation (LLC), or S-Corporation?" are just | | | | Franchise fees and royalty payments will vary from |
| a few of the many questions that need answering. | | | | concept to concept. Logo recognition and other |
| The fact that there are many different answers to the | | | | factors will be considered in choosing the program that |
| questions leads you to understand that this is not a | | | | best fits for you. There are companies that offer low |
| "one size fits all" proposition. One of the answers may | | | | initial fees that make it easier for some investors to |
| be investing in a franchise. When making a decision to | | | | make a decision. This is not a good reason to decide |
| invest in a franchise concept "the shoe needs to fit!" | | | | to part with your money. No matter what the initial fee |
| You should first decide on an industry with opportunity | | | | is you want to research the entire program to insure |
| and one in which you have a passion for. You need to | | | | you will have all the tools needed to be successful. A |
| be 100% committed to the industry and concept you | | | | low franchise fee is not an excuse to invest in an |
| choose, being 90% sold just won't get the job done. At | | | | incomplete program. |
| this point you need to research the franchise | | | | The same can be stated for a higher franchise fee. A |
| opportunities that exist in that industry by searching | | | | larger initial investment does not necessarily mean it will |
| outlets like the internet, franchise magazines, franchise | | | | be exactly want you are looking for in an investment. If |
| opportunity shows and expos and more. | | | | you find a concept that you feel is the right fit for you |
| Request a sales circular and all initial information about | | | | then perhaps it is time to evaluate how you can make |
| the company that will help you make your decision. As | | | | it work. Contacting other potential investors with capital, |
| you go through the material you should ask yourself | | | | seeking a loan from a lending institute, reaching out to |
| for reasons why you should not invest in the concept. | | | | the Small Business Administration (SBA) are just a |
| Write down any questions that arise so that you can | | | | few ideas to consider. Even if you do not invest in a |
| ask the company representative to answer them fully | | | | franchise concept these are options for anyone |
| and completely to your satisfaction. The reason to ask | | | | starting a new business or expanding an existing |
| yourself why not to invest is that you want answers | | | | business. |
| that will tell you that investing would be a wise decision. | | | | Look for a "blue chip" in the concept. What is it that |
| You want to be convinced into reasons why you are | | | | makes the franchise stand out from others? What |
| going to invest in a particular concept. | | | | does the franchise offer that other similar concepts do |
| An important item to consider is exactly what are you | | | | not offer? What does an investment in the concept |
| going to get for your investment. You should be getting | | | | give you that you can not get with your own start up? |
| a plan that will save you a lot of time and money in | | | | Is the concept, the program, or the product offered |
| mistakes you may make in starting your own business. | | | | considered high in the marketplace? KFC has the "11 |
| Logo design, company paperwork, approved vendor | | | | Herbs and Spices" and you are looking for what will be |
| lists, ongoing support, and very importantly the training | | | | your "blue chip" if you invest in a particular franchise. |
| program that will be the foundation of the new venture | | | | There are many items to consider when considering a |
| are few of the areas where there are potentially | | | | business venture. Whether to franchise or not to |
| significant savings. An effective training program, | | | | franchise is only one particular item. If you decide that |
| accompanied by an on-going support program, should | | | | franchising is the "right fit" for you this only leads to |
| cut your learning curve greatly. If the program is | | | | many more questions that need answering and |
| effective it should give a potential investor a six month | | | | research that needs to be completed before making a |
| to one year advantage over an investor who | | | | final decision. If you have ever worn a shoe that does |
| attempts a start up on their own. | | | | not fit it can be nagging and painful. Even a shoe that is |
| Obviously the learning curve will vary depending on | | | | just half a size too small can be uncomfortable. Make |
| each investor's previous background, education, and | | | | sure the shoe fits and that you are comfortable in your |
| other factors. In evaluating this situation one should | | | | ultimate decision. At the end of this research, when all |
| assess how much money could be saved by using a | | | | the information has been accumulated and evaluated |
| program that is already in place. Print expenses for | | | | carefully, "The shoe needs to fit! |