Franchises account for over 700,000 establishments and rake in over $600 billion annually in the U.S. How can you join in on this exciting and growing industry?
Franchises are a great way to get your feet wet with a business. They’re also a good way to invest extra money on the side.
Not sure which franchise is the right one for you to start? Here are five must-know tips on making the right decision and choosing the best new franchise!
1. Do Your Homework
Sure, fast food restaurants make up the majority of successful franchises. But which ones have growth potential?
Don’t just stick to what’s easy. Check out all of your options and find out which franchise businesses seem to be expanding and in demand.
2. Make a Budget
The amount of cash you have on hand determines what kind of franchise you can buy. You might not recoup your investment right away, so take stock of your finances before you go all in.
Things like market saturation can also have an impact on your ability to turn a profit. Keep in mind things like fees, start-up costs, loan availability, and whether or not you’ll be able to make a living for up to a year and budget accordingly.
3. Keep an Open Mind
There might be a franchise out there that you’ve never thought of but would be a great fit for you. Search outside of your comfort zone when looking for the best franchises to buy.
There are interesting and inventive new ventures that enter the franchise market all of the time. You might discover the joys of running a cryotherapy franchise or owning several cosmetics and toiletries vending machines.
4. Build Your Network
When taking on something new, don’t try to forge ahead without a road map. Talk to others that have been there, done that, and know all of the pitfalls you’re sure to face.
Start building a network of other franchisees. You’ll have someone to lean on if the road gets rough and can scope out new opportunities in the field.
5. Have an Exit Strategy
Is your franchise a short-term investment? What will you do if you find out being a franchisee isn’t for you?
There may be restrictions on selling your franchise or the company you choose might demand a longer commitment than you’re looking for. Whether you want to build up a small franchise to flip in the future or you’re unsure about the whole thing, it’s good to have an exit strategy.
Find the Best New Franchise for You
Finding a new franchise is exciting and fun, but can also be a bit stressful, too. These five tips will help you avoid the mistakes others have made and find a great franchise fit.
Remember to do your homework, keep an open mind, and be honest with yourself about how much you really want to invest. If it’s not for you, it’s important to know how to exit, too.
We know this guide to finding the best new franchise will help you on your journey to becoming a successful franchisee! Check out our other business articles to keep your company running smoothly.