con·sult·ing /‘kən-sel-tin/verb
1. Providing professional or expert advice 2. Diana Capirano on franchise ownership
Franchise Precheck Here's how you can simplify the process When contemplating my exit from corporate life several years ago, I began by investigating franchises online. I clicked various links in hopes of finding clear, succinct information. And OMG, I created a cyber frenzy! My phone and email were blowing up, and I couldn’t even remember what buttons I’d pushed. I had started my search indiscriminately, without taking the following crucial first steps. GUT CHECK Make sure your motives are legitimate and defined. How seriously have you thought about owning a business, or are you reacting to a bad day at work? This doesn’t mean you know exactly what you want, just that you don’t want to work for anyone else. ASK: If I found a business that met my needs, would I commit? Speak with your spouse or partner even if he or she won’t be involved. Will your significant other support your goals? ASK: How important is that approval to my decision? Stay open-minded to various categories of businesses even if you’re leaning toward a particular one. Few franchises 52
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require that you have experience in a specific field and 98 percent of franchise owners invest in something outside their wheelhouse. ASK: Can I leave my comfort zone? Face reality and fear of the unknown. This mainly has to do with your confidence level and inner motivation. ASK: What’s the worst that could happen? Weigh it against the best-case scenario. This requires a second gut check. ASK: Do I take ownership and accountability by relying on yourself, or do you tend to rely on others? FINANCIAL CHECK Determine your comfortable investment level. Spending money without a guarantee means risk, but franchising is the lowest-risk option statistically. There are many budget-friendly possibilities, or if your resources allow, you can adopt the go-big-orgo-home approach. Start-ups go from $10,000 to $4 million. ASK: What amount can I comfortably assume? What is feasible? Figure out your net worth and know your liquidity. Some franchisors have stringent requirements; lower-investment franchises may have none. ASK: What
