When buying into a franchise, a question that most...
Once you've finally decided to join a Canadian franchise, you have an exciting journey to go on. Now, you'll be able to research all the opportunities that interest you so you can find the best system for your goals and preferences.
However, there are two common snags that tend to pop up in franchise searches that you must avoid. If you fall into either of these traps, you could waste a lot of time on a franchise you will end up not joining or, in the worst-case scenario, end up with a franchise that just isn't right for you.
Picking the wrong industry
In many cases, people get very focused on the statistics during their franchise search. Of course, the numbers are important, but they're just part of the picture and not the entire view.
Before you decide to spend your time looking into franchises based on the success and the strength of their industries, you'll have to take an internal appraisal. What are your passions and wants? Your honest answers will help guide you to the right industry.
There are a lot of franchises out there, so your passions can help steer you toward the right brand. The idea here is to find the one that will match what you want from ownership the most.
Underestimating the costs
Financials are a vital part of any franchise process. You can't just look at the entry costs here; you'll have costs beyond this that will depend on the brand and format of your franchise. These costs can add up very fast, and if you're not prepared for them, it can doom your entire business before you really get off of the ground.
Essentially, you'll need to have enough fund sets aside to carry all the costs of your business and provide you with enough income to live off of for the first two years or so of your business. While you may hit the ground running and enjoy profits right away, most businesses are not profitable in their early stages. This means that you can't rely on money from your new business to support you.
Be realistic about what you can afford to weather financially in the beginning. This will help ensure you are looking at opportunities you can afford. Committing to a franchise you can't afford is a very expensive mistake to make, but you can avoid it with proper planning.