Written by Guest Author: Jerome J. Williams
When financial times are bad it is very easy to convince yourself that there no solid business opportunities available in challenging economy. However, you’ve managed to silence the negative self talk and have decided to look at what franchise opportunities are available. This is probably a wise thing to do. I tell my clients, “job security is a thing of the past and if you are not looking at some type of business opportunity, you should have your head examined.”
So you have decided to look at what franchise opportunities are available. This is probably a wise thing to do. I tell my clients, "Job security is a thing of the past and if you are not looking at some type of business opportunity, you should have your head examined."
There are currently over 3,000 franchise concepts in the United States. From 2003 to 2005, nearly 900 concepts started franchising and only one-third of all franchise concepts have more than 100 units. So how do you go about choosing the right franchise? The successful purchase of most good business opportunities has two key elements in common: timing and preparation.
Timing
When you consider the current economic climate that I just mentioned, most franchise experts will tell you that the timing is still good. One franchise consultant colleague of mine says he has experienced a 15% growth in franchise purchases this year by franchise opportunity seekers. So what gives some franchise prospects the confidence to press past fear in order to purchase the franchise of their dreams while others succumb to those same fears?Think about it for a minute. When did you feel the most confident on an interview? If you are an ex athlete like I am, when you did you feel the most confident when facing your opponent the day of the event. More than likely you felt the most confident when you knew you were prepared. Preparedness in our industry is called completing your "due diligence."
Preparation Breeds Confidence
Due diligence can be summed up in two words: research and resources. Franchising is primarily predicated on "systems" and the duplication of those successful systems. So do yourself a favor and approach the evaluation of ALL franchises systematically.I give my clients a unique set of questions and tasks which enhances their confidence during the research stage. It is the same process my business partners and I used in 2001 to buy our first franchise. We also relied heavily on the expertise of an experienced Franchise Consultant who provided us with valuable additional information.
Unfortunately, too many people take the due diligence process for granted. Your research will diminish most, if not all of your fears; so be confident in yourself and the analysis that you have performed.
