One of the most common questions when you’re exploring franchise opportunities is, when is the right time to start? In life, timing is often everything
and this holds true in buying a franchise as well. The answer is simple. When you believe you’re confident that you will be able make a solid “go or
no go” decision within a 90-day time period from today, you are ready. I’ll explain more in a minute.
Think you’re already ready?
There are many factors to consider in determining whether or not you’re ready to begin exploring franchising. First, you’ll want to make sure your family
support is in tact. My daughter and I have been in franchising a combined 54 years and we always say, “when you have a family, and you have a business,
you have a family business”, so it’s important to have their buy in up front.
Get the right advice. Next, seek advice from a local franchise consultant to sort it through. The best consultants will meet with you face to face and know your local market intimately. But beware if they try to sell you on a particular franchise brand right off the bat. That’s a red flag. The goal of the process should be to help give you the confidence to make the decision on your own. Before recommending any specific franchise opportunities, a quality franchise consultant will ask you about your personal and family situation, short term and longer term goals, risk tolerance, skills and interests to name a few. She or he will also aid you in crafting an affordable franchise funding strategy. After reviewing your readiness, the right time for you may be 6 months or even 5 years down the road, not 90 days. An ethical franchise consultant will be honest with you about this if you’re really not ready.
Why the 90-day window? When you sign a franchise agreement, you’re most often committing to a defined territory. Territories can be as small as a city block or as large as a multi-state region. Franchise territories can change dramatically in fairly predictable 90 day cycles. What’s available today may not be in a few months, especially in a high growth franchise market like metro Atlanta. It’s safe to assume, while you’re doing your research-learning about the business model and crunching the numbers...others are doing the same. This is especially true if the brand is highly competitive, well known and locations are already thriving in your area.
The worst thing that can happen in your journey to becoming a business owner is taking months and months researching what you believe is the perfect franchise opportunity for you and finding out someone got to the finish line before you and the territory you wanted is gone.
What does due diligence look like? For some, go time is always now, but we encourage you to hold tight. There’s much to do in that 90-day period. When we talk about due diligence, we’re not talking about simply Googling “top 10 lists” or driving down main street to see which new franchises just popped up in your neighborhood. We’re talking about a deep exploration into the major factors in deciding on the right franchise for you. This process, when done right, takes about 10 to 15 hours per week. Your franchise research process can be an highly fruitful journey as long as you remain diligent and mindful of the 90-day decision window.
One of the best reasons to work with an experienced franchise consultant who lives and works in your local market is we are often the first to know when a territory or an attractive franchise resale becomes available so you can get ahead of the competition. We stay on the cutting edge of the emerging brands and are often the first to know when a franchisor is ready to grow locally.
Still think you’re ready? Give me a call at 770-973-0221 and I’ll help you determine when the timing is right for you and guide you through a thoughtful and strategic franchise opportunity research process.
more than 30 years, Phil Kuban has enjoyed helping people realize their dream of business ownership. His personal experience of being a franchisee
of retail and professional services franchises, a franchisor and area developer has been instrumental in the guidance he’s able to provide to his clients.
Master franchise development is an area Phil is particularly passionate about and he’s been successful in recognizing up-and-coming brands. Phil always
suggests his clients begin with the end in mind. He believes the right franchise opportunity with the right exit strategy is the key to building equity
To stay connected to a wealth of information on becoming your own boss, like us on Facebook and connect with Phil on LinkedIn.
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