This lesson is part of our free Franchise 101 course.
Investing in a franchise is a huge decision, both financially and personally. You’ll be putting your own money and years of your working life into making it a success. With the right choice, it could be the most fulfilling thing you ever do, but the wrong choice could lead to frustration and heartbreak.
To help you pick the right franchise, I’ve developed a five-step path. It breaks the process down in a systematic way, so that it’s easier for you to find your path to wealth and satisfaction.
Step 1: Develop the Right Mindset
There are no guarantees when running a business. Choosing a franchise won’t miraculously make you a success, but its established reputation, business model, support, and training can give you a huge head start. Be ready to make the most of that, but also for hard work and tough decisions.
Step 2: Cast a Wide Net
Instead of diving straight into the first franchise you see, look at a wide range of options. You might find something that you’d never considered, but that is a perfect fit.
The information on Franchise Chatter will tell you how successful franchises are, based on key performance metrics such as average annual profits. This gives you the information you need for the next stage…
Step 3: Create a Shortlist
Use your strengths and passions to decide which category you find most appealing and concentrate on the franchises there. Then use the performance metrics to identify the most successful franchises available in that category. These are the best options for you.
Step 4: The Deep Dive
Dig more deeply into the options in your shortlist. Learn everything you can about them. Carry out competitor analysis so that you know what they are facing. Use online research to identify any red flags or areas of uncertainty that would put you off one of these franchises.
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Step 5: Beyond the Numbers
Find out what current and past franchisees say about the franchise, whether it was successful for them and what it was like to work with. This will help you to understand how the franchise will treat you and whether its owners have the best interests of franchisees at heart.
Those five stages should give you all the data you need to make a decision. You might still want to consider expert help to analyze that information. This is where a franchise consultant or franchise lawyer can be valuable. Or you might feel that, with the data you’ve assembled, you’re ready to make your own decision.
The important thing is to gather the information you need in a structured way. A Franchise Chatter membership can help you gather that information and start making one of the biggest and best decisions of your life.
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