Do Your Research BEFORE You Start A Business
If you want to start a business, you may have a few stars in your eyes — think Steve Jobs in a garage or Ray Kroc planning an unheard of chain of hamburger joints, but Apple and McDonald’s are more the exception than the rule. Related: Ready For A Franchise? Maximize Your Success By Making The Right Choice! Blink away the stars and get down to work. There is a great deal you can do to improve your odds of success. At the top of that list is research. Know as much as you can before you sign any contracts or put any money on the line. An advantage of a franchise is you get access to a wealth of information, including training and ongoing support, to help you decide whether you can succeed with a particular business. The franchisor’s system, however, can be a double-edged sword. On the one hand, it shows you all you need to do to achieve profitability, but if you’re not willing to follow the franchisor’s system and you would prefer to do tweak things because “you know better,” a franchise is probably not for you. We like the franchise model because it allows you to minimize your risk while still reaping many of the rewards of owning your own business: you can take control of your career and increase your income. But not all franchises are worth your investment. The trick is to figure out which ones are. The good news is the Federal Trade Commission requires franchisors to disclose a great deal of helpful information in a franchise disclosure document (FDD). A good franchise coach can help you peruse this document, but the FTC requires it be written in standard English — no legalese — so you certainly can begin the process yourself.