Three Tips for Finding the Right Industry for You
There are so many different industries that have a franchise. In fact, there is likely no business model that you can’t find that isn’t already franchised. Once you understand that, your job is to narrow down your choices to fit your passions, your skills, and your community’s needs. In addition, you’ll need to reconcile all that with your budget and financial ability.
Tip #1: Determine Your Industry
When you are looking at an industry to franchise, you want to ensure that it’s something you know that you’ll love. While you don’t have to have all the skills or business knowledge to run a franchise, it certainly does help to have some form of experience in the industry so that you know you have a love for it. After all, you’re going to be stuck with this business a long time if everything goes right.
Industries that offer franchise opportunities for investment include:
* Business services
* Health and fitness
* Home based
* Home repair services
* Photography and video
* Printing, copying, shipping, signs
* Senior care
The list above is representative of the types of industries that offer franchise opportunities. You can find a range of prices in each industry, so don’t think that any one industry is out of bounds for you if your budget is on the small side. But, do expect to spend from $5K to $5 million dollars on just the franchise fee.
Tip #2: Determine Your Budget
This list of potential costs may or may not be complete. You should add to it as you do your research so that you can ensure that your budget is sufficient to meet the needs of more than just paying the franchise fee. You’ll need to survive to profitability, and you’ll need to pay for everything else even if you’re not making money.
Typical costs of running a franchise, not including the franchise fee, include:
* Accountant fees
* Advertising and marketing fees
* Build-out fees
* Business licenses
* Grand opening expenses
* Initial advertising and marketing expenses
* Legal fees
* Product costs
* And more
Tip #3: Do Your Due Diligence
You’ll need to research every possibility. It helps once you’ve narrowed down your industry and your budget. You’re sure to find just the right franchise for your personality, your goals, and the lifestyle that you want to live with just a little research.
* Talk to owners – Talk to other owners, and not only the ones they want you to. Ask for a list of the last ten people who bought franchises and talk to them. They’ll be in various stages of the business and can give you a lot better outlook.
* Get a job – If you have chosen a place that has a franchise not too far from you in another community, why not get a job there to find out how it’s run and whether you like it. Ask the franchisor if there are any corporate owned franchises within a reasonable distance from you where you can observe or even work.
You’ll either realize that you can go for it now, or you may determine that you need to work a little longer at what you’re doing now to pay for your dream. Don’t change your dream because you can’t afford it right now; instead, keep on dreaming while saving and planning for that future that you want as a franchise investor.