Are you looking to make a significant career change? Are you dissatisfied with your current job and in need of a new challenge? Many people opt to become entrepreneurs and invest in franchising as a way to make a fresh start. It’s no wonder franchising is gaining in popularity: it offers a proven business model, lower risk than most startup businesses, and plenty of support from the franchisor. When done right, franchise ownership can be a great way to earn a living and take control of your future.
But starting a new venture also comes with many questions. What should you look for in a franchise? How can you find the right support? What kind of risks should you anticipate? The International Franchise Professionals Group (IFPG) can help you find the answers. We’re a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants and vendor members. Our purpose-driven mission is based on integrity, ethics and collaboration.
If you’re a career changer considering investing in a franchise, here are some of the most frequently asked questions and our best advice.
Questions About Franchise selection
The most important factor when selecting a franchise is to choose a business that aligns with your skills, interests and resources. It’s important to carefully research all the options before making a commitment. Here are some of the questions you should ask yourself when selecting a franchise:
- What kind of lifestyle and freedom does the business offer?
- What are the financial considerations involved?
- Does this business align with my skills, interests, and resources?
- How much experience do I need in order to successfully start this business?
- What kind of support can I expect from the franchisor?
- What kind of long-term success can I realistically expect?
The IFPG can help you research different franchises and make an educated decision. Our members have over two decades of experience helping entrepreneurs identify and invest in successful franchises.
Questions About Business Ownership
Once you’ve selected a franchise, there are several important considerations to keep in mind. Here are some questions to consider as you prepare to move forward:
- What kind of customer base should I expect?
- How will I market and advertise my business?
- What will be the cost of hiring staff?
- How much guidance can I expect from the franchisor?
- What kind of capital investment do I need to make?
- How can I manage cash flow?
Business ownership can be daunting, but with the right support and guidance you can set yourself up for success. The IFPG’s members can provide the tailored advice you need to take your business to the next level.
Questions About Financing
If you’re franchise investing, it’s likely that you’ll need financing to cover some of the costs. Here are some important questions to consider when exploring financing options:
- What kind of loan program is best for my needs?
- How do SBA loans work?
- What are the advantages and disadvantages of franchises’ preferred financing options?
- What is the average loan amount for a small business loan?
- What is the best way to protect my investment?
- What kind of tax considerations should I expect?
Starting a franchise is a big commitment, and it’s important to consider the questions above and find the answers before deciding on financing. Our team of experts have the know-how and experience to guide you in obtaining the necessary funding for your business.
Questions About Potential Risks
Franchise investing comes with unique risks, and it’s important to be aware of any possible obstacles before you commit. Here are some questions to ask before selecting a franchise:
- What kinds of risks am I exposed to as a franchisee?
- What are the most common risks for a franchise investor?
- What strategies should I employ to mitigate my risk?
- How can I protect my investment long-term?
- How can I protect against encroachment?
- What kind of back-up plans do I need?
At the IFPG, risk management is just as important as brand growth. We’ll work side by side with you to identify potential risks and find ways to help you manage them.
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