Do you remember when everybody practically everywhere was talking about Subway®? I sure do.
Before I got into franchising, the idea of owning a Subway franchise was a hot topic. People from all walks of life wanted in. They saw it as a way to become their own boss with a pretty low upfront investment. Prime locations were gobbled up, and lots of people became multi-unit owners.
Subway remained a very popular and visible brand for a long time. The people that got in early did pretty well...some did very, very well. Subway is still a popular brand, but it's not considered to be what it once was.
Nothing Stays the Same
Nothing lasts forever. Hot brands in franchising don't stay hot forever. New brands are always entering the marketplace. New ideas for products and services are introduced every year. Some of these new franchise concepts end up succeeding-exploding even. Some of them fade away soon after they're launched. But, even the hot ones eventually lose their fire. Keep that fact in mind as you're searching for a franchise you'd like to own.
Picking The Winners
Too bad crystal balls don't really work. If they did, you could choose franchise concepts that were getting ready to go big. But, they don't, so you're left with doing good old-fashioned detective work to find then research franchise opportunities you hope will be a good fit and that you can be successful owning.
Goal-Setting
Before you begin taking a serious look at franchise opportunities, it's important to set some goals. If you don't, you'll find yourself clicking from one franchise opportunity website* to another for hours on end-with nothing to show for your efforts except a sore wrist and tired eyes.
Ideas for Goals
I want you to decide on your own goals for a franchise you'd like to own. It's your life and your money. But, allow me to prime the pump a bit. Check out these 5 possible goals.
- I want to own a franchise that allows me to have a lot of flexibility in my day.
- I don't want to invest more than $200k in a franchise.
- I want to own a franchise with a well-known brand.
- I only want to buy a newer franchise concept so I can get in on the ground floor
- I want a franchise that can serve as a family business-for my family.
Did I get you thinking?
Deciding When
Number #3 and #4 above may not be goals you had planned on having, but, they're important ones to consider. That's because you need to decide when you want to get in. In other words, would you like to have first dibs on a franchise location in your area? If so, you should look into younger franchise brands...franchise businesses that are up and running in other parts of the country-just not in yours.
Or, would you like to be the second or third franchisee in your local area? If so, that could mean that the “best” locations may already be spoken for. It may also mean that the residents living in your area already know of the brand; that could make it easier for you to get your new business up and running.
The Ebbs and Flows
If you know going in that all franchise brands experience ebbs and flows, you're already ahead of the game.
You may end up buying a franchise that's considered and up and comer. Your timing could turn out to be perfect. If so, take advantage of your brand's popularity. Earn as much money as you can. But, make sure you put aside some of your earnings if possible, because business may not always be good.
Tip: Choose a franchise opportunity with an innovative executive team. A team that's not afraid of introducing new products/services to the marketplace. It's one way to try to limit the inevitable ebbs and flows that all brands experience.
*Non-U.S. Government link
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