When researching a franchise to invest your hard-earned money into, there are many things to consider.

You can choose a new and exciting franchise with a lot of potential or select a franchisor with more experience. There are advantages and drawbacks to each option.

This year Pete learned he sucks at the board game Sorry! It was a byproduct of being stuck at home with his family for weeks on end. We all know the early stages of the coronavirus pandemic was awful, but Nat and Pete enjoyed the time they got to spend time with their families. They turned lemons into lemonade.

We all love the feeling of a weight being lifted off our shoulders. It usually comes with a sense of relief or accomplishment. Sometimes, we hit a wall. We get fear. Many times that fear is the fear of the unknown—of uncertainty. Franchisees and entrepreneurs experience this like anyone else. Often, that fear of uncertainty means we choose unhappiness instead.

 

By Pete Gilfillan, best-selling author of HIRE YOURSELF: Control Your Own Destiny through Franchise Ownership.

The leap from investigating a franchise to buying one requires a reality check from any potential investor. Franchise loans are out there, but getting selected as a franchisee has different requirements. Funding is important, but it isn't the only step to financing your first location. There are three main components that will determine if you are financially solvent and solid enough to buy into the franchise you choose: your net worth, your liquid capital, and your credit history.

Putting together a solid business plan before you file any applications or sit down with a finance company, a loan officer—even with a family member—will help you make a clear, compelling case for funding. It is also the first step to successful franchise management. You've gone through your options and now a plan is the best way to have a clear path and direction when owning a franchise.

Your business plan should include each of these basic components if you want to make sure your franchise management is solid.

 

Plans and Goals are important, listen to pete and nat's ideas on how you can master goal setting

As the owner of a startup business, you’re going to start out spending working capital—money you’ve set aside to live on and run your business with until it becomes profitable. In time, you can expect to reach a point where your business breaks even, when you’ll have more cash coming in than going out. When that happens, the business becomes self-sustaining. You have career security!

Thomas Edison once wrote, “If we all did the things we are capable of, we would astound ourselves.” The skills and strengths you bring to business can help determine if entrepreneurship is right for you. We all have talents and abilities that stand out. Having a firm handle on yours will help you make smart choices as you look at investments and lower your levels of fear and anxiety. Consider the following questions to help assess your own skills and strengths in franchise entrepreneurship:

Classic comedian Milton Berle once quipped, “If opportunity doesn’t knock, build a door.” In a nutshell, that’s what many aspiring entrepreneurs are looking to do. Owning a franchise is a great way to start the process!

Becoming an entrepreneur through franchising offers many different ways to build that door, depending on whether you want to gradually build a bridge from your corporate job while still working or whether you’re ready to go all-in right away.

For example, I recently worked with a candidate who already owns a business in one industry. He wanted to diversify his investments, and told me he could set aside 10 to 15 hours a week to give to a second business. We were able to find a perfect opportunity for him in a fitness franchise—one that allowed him to add his new business to his existing schedule, rather than trade one for the other. We can even find franchise resale opportunities that will decrease your time to open doors.