When you are ready to leave the corporate world and begin working for yourself, franchising is an excellent way to make that transition. Franchising is one form of business ownership that can be explored in varying degrees. There is the position of a semi-absentee owner that is content to sit back and let the hired employees manage the company, and then there are owner/operators that want to effectively manage every detail of the franchise on a daily basis. There are also franchise business models in between these two with more or less control depending on your preference. Generally speaking, the best policy is to explore your own strengths and weaknesses and choose the model that is the best fit for you.
In some respects transitioning from your day job into a franchise is easier than transitioning into other types of businesses, as you will have the support of the franchisor and a network of other franchisees.
Finding a good consultant as you begin looking for a franchise is an excellent way to get started. The three best resources to use when choosing your franchise and the business model you wish to use are as follows:
- FDD – This stands for Franchise Disclosure Document, and it will provide you with concrete information about the history, costs involved, and obligations with the franchise of your choosing. Some of these documents will provide information on the gross revenues of franchisees, but that is not always available. This document is a good start to your due diligence process.
- Current franchisees – People that are successful love to talk about how they got that way. Franchisees that have turned their businesses into money makers will generally be happy to discuss advantageous markets, pitfalls and lessons learned with new and potential owners. These folks represent a wealth of knowledge from the front lines of the business – their comments should be marked and remembered. You can also talk with franchisees who left the business within the last three years to gain their insights as well. The information for current and past franchises can be found in the FDD.
- Franchise consulting firms – Companies like FranNet are great resources to get you into franchising because they have experience and connections. We make it a point to match people with franchises that tailor to their strong suits which makes it easier for them to succeed. We can also review your finances and suggest the right business model to set you up for success.
For many folks that have worked 10, 20, even 30+ years in a corporate environment, it can be a nerve-wracking experience to transition from getting that regular paycheck into owning a business that will take some time before it becomes profitable. For that reason, many choose a semi-absentee franchise business model that allows them to work part-time or even full-time while they are getting their feet wet in the business world. Outside of the business these new franchisees can hone their management skills in the form of marketing, vendor negotiations, human resource issues and customer service when necessary.
Transitioning from a day job into owning a franchise can be a rewarding and lucrative experience as long as you do your homework and understand what to expect. A qualified franchise consultant from FranNet can help you through the process and make it easier. Contact us today to learn more.