When considering starting a business, there are many reasons to pursue franchising as a business strategy. For starters, it’s a smart approach for an individual with entrepreneurial ambitions who does not want to reinvent the wheel and create a new business from scratch. Franchisees who choose a successful system receive a proven model that comes with built-in brand recognition, substantial training, strong, ongoing support, as well as a product or service that is already proven.
But before taking such a big step, here are four questions to ask yourself.
What are my strengths?
Successful franchisees are comfortable with the idea of following a proven system and operate well within a set of guidelines. If these are your strengths, you might be a good franchisee.
Is this industry on an upward trajectory?
It’s important to do adequate research on the industry in which your chosen concept operates – you want to make sure that all signs point to growth and a need for additional products or services. A successful franchise fills a market gap to ensure ongoing business.
Am I financially prepared?
Beyond the initial franchise license fee and start-up costs, a franchisee prospect should be prepared to adequately fund not only their business but also their personal expenses. Take a good look at the Franchise Disclosure Document (FDD)’s Item 7, which lists a franchise’s additional working capital. Ideally, you should have access to capital that will cover personal and business expenses for six months to a year or longer depending on the business model.
Have I done my research?
After going through the process of exploring how the franchisor supports the franchisees with brand, operating systems and ongoing support, you should get out there and talk to franchisees! Ask them why they enjoy working in their business, and what life and work has been like since beginning. Existing franchisees are valuable resources that can help you determine if an opportunity is right for you.
If you’re interested in a franchise opportunity that thrives off of the entrepreneurial ambition of its franchisees in a booming industry (moving and storage) that is expected to grow by an annual average rate of 5.4 percent, we encourage you to check out the Zippy Shell franchise opportunity. Our talented team of franchisees serves markets from coast to coast, and is growing monthly.
Take the first step to explore franchising with a reputable, proven brand that offers top-of-the-line support and multiple revenue streams and click here.