Buying a Business

You know you want to have your own business, and youve learned that franchises can constitute the safest and fastest route to success. You start investigating franchise opportunities and find yourself feeling like a kid in a candy store. There are so many franchises out there! Do you want to own a food franchise? Or maybe a franchise that helps seniors stay in their homes? Do you want to build things? Have a staff? Work from home?

Maybe you already have an idea of what type of franchise youd like. Or perhaps you have no clue. Either way, you are at a decisive juncture. Making good decisions now can save you a lot of time and heartache by ensuring you only investigate franchises that might be a good fit for you. The Wrong Path Lets consider the typical franchise candidate. Shes thrilled about the idea of franchise ownership. All of a sudden, she has an increased awareness of small businesses in her city. Everywhere she goes, she sees that people are working for themselves. She pictures herself in different businesses. She thinks about what she loves in life, and what kind of business that might lead her to. Hey, she likes clothes and shoes and is constantly organizing them! She really understands the importance of a great closet and thinks that maybe a franchise that builds beautiful closets systems would be fun! She even saw an article that said custom closets are hot! And there isnt a single closet company in town! She decides shell start her search by looking at closet franchises.

The Ambush
By starting the process this way she has made a dangerous mistake. Simply because she likes clothes, shoes and organizing does not imply that she will be an competent owner of a cabinet design, manufacturing and installation business. Just because there are no other businesses in the community offering this service, it does not mean that she is positioned for success. Her hobby/passion is for shoes, clothes and organizing. Does she really have a passion for woodworking, managing a staff, managing a marketing program or selling? The purchasing and cash flow aspects of this business are critical. Would she be effective in this area? Following your hobby and passion into business often leads to a loss of the hobby and a challenging business.

Avoiding the Ambush
The franchise investigation starting place is never external - what does the community require - and its rarely your hobby. Do not make the mistake of believing you need to pursue your hobby/passion to be successful. As Rich Dad, Poor Dad says, Passion is more about what you are being (business owner), than it is about what you are doing (laundry).
The most competent way to focus on the type of franchises that are good for you is to focus on your skills and abilities, as well as what you desire from a business.

Skills and Abilities
Lets imagine our hypothetical franchise prospect has spent the last 20 years managing casual dine restaurants. Over the years she has acquired solid skills when it relates hiring, firing and managing high-turnover employees, creating happy customers in a retail setting, inventory management, scheduling, purchasing perishables and planning. In order to position herself for maximum success she must look for franchises that utilize those skills. To learn more about how to do this read Chapter 4 of The Educated Franchisee.

What You Desire from a Business
There are different things she may also wish. Maybe she wants to have weekends and evenings off for the first time in her life or perhaps she wants a low investment. If this is the case, she may need to leave the restaurant industry. Maybe she wants a business that will provide her with greater flexibility to spend time with family. Then she will need to consider businesses that have key employees she can trust to manage the business while she is away. There are a lot of things a person might want from a business. Before looking at franchise businesses, you want to identify both your skills and your desires. Then you need to gather the franchise information required to ensure you find the best business for you. Remember, most people are happiest when they are successful. Prioritize your skills and lifestyle desires to give yourself the highest potential for success.

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