George Cohon, renowned businessman and founder of...
Once you decide that you want to be franchisee in Canada, the next steps can be surprisingly tricky. If you don't make the right moves, you may not achieve your goal of business ownership. Start out with the three necessary goals below to become a franchisee by the end of the year.
Craft your financial plan
You'll need more than just a minimum investment to join a franchise system. You'll need to be able to support yourself while your business is being built, pay staff and handle other additional costs. Before you sign any agreement, you need to have a comprehensive plan that shows how you'll pay for all these costs once the keys are in your hand, so to speak.
You may opt for a small business loan to help cover the upfront costs, and this is an area where having a financial plan may mean the difference between approval and rejection. When you have a detailed business plan, you'll have a better shot at convincing lenders to grant you financing.
Perform a competitive analysis
Deciding which franchise industry to get into is about more than just your personal preferences. You need to know what your market wants and what is needed in the area where your business will be located. With a deep competitive analysis, you'll be able to see what needs aren't being met in your community. Talk to friends, family and everyone you can. Visit local networking events. Before you commit yourself to a particular franchise, make sure it's something the buying public around you is seeking.
Prepare your professional life
Not all franchises will require you to quit your current job at the start, but you'll need to take a look at your current situation and your goals to decide if you need to let the day job go entirely. If you think leaving your job is the best option for your franchise, plan your exit now. Even if you never plan to work in your current industry again, it's best to not burn professional bridges when you don't have to.
Getting a new Canadian franchise is a serious commitment, and you want to have your plans together from the get-go so you have the best chance at success. Get your finances together, get familiar with your local market and decide how to handle your current job now. With these goals met, you'll be in an ideal position when you start your new franchise business.