George Cohon, renowned businessman and founder of...
Looking for a franchise in Canada means you have a lot of options, which is great in some ways but an obstacle in other ways. It's like going to a new restaurant and finding a gigantic menu; you love having all those choices, but how will you find the right meal, so your visit doesn't end in disappointment?
As you search for your new franchise, you may find yourself a little frustrated at times because of all the available options. However, it doesn't have to be this way. Use the tips below to help make your search process a little smoother!
Cap your industry options
You are looking for a franchise for a reason. Maybe you want to be your own boss or make a financial investment. Your reasons are important, so keep in mind that you will be firmly in the industry you select. Go with an industry that just makes sense based on your own preferences, experiences and interests. Use these factors to limit the number of industries you are searching in so you are not distracted or overwhelmed by the sheer number of brands to choose from.
Be flexible when it comes to location
Waiting for that ideal location could delay your progress for months. Of course, this doesn't mean you should immediately agree to a site. If the franchisor's available locations are too far away from your home or in a neighborhood you're not comfortable with, it's not the right move for you.
Franchisors need successful franchisees, and they tend to choose locations based on their own experiences. Should your dream spot not be available, your second or even third choices may be fine, too. Don't sacrifice your personal needs when it comes to location, but be prepared to be a little flexible here.
Know your finances
A franchisor will evaluate your net worth as part of the approval process. In addition, you have to be able to comfortably invest what is required, plus have additional capital on hand. The first months of operation will likely be tight and things happen, so it's very possible you will need more than just that initial investment early on.
Overall, after you are approved, you will need to have enough money on hand to cover your operating and personal costs for at least two years. You may profit quickly, but it's not unusual for businesses to not turn a profit for the first few years in business. To be prepared for success, you have to have enough on hand to weather the early phase in your business.
Once you know what you can truly afford, you can set yourself investment limits and keep your search within those guidelines. This will prevent you from wasting time evaluating brands that you cannot afford.
Enjoy the franchise search process more by taking out the potential sources of search frustration above right from the start. Then, you will be able to plan for a realistic franchising future.