Business Brokers - Sell Business - Business Sales and Acquisitions - SunbeltNE

Applying for franchisee rights or buying an existing franchisee outlet can be the safest way to scratch the entrepreneurial itch as proven processes of decision making and business execution often mean a great difference between success and failure.



Following steps can help you review your franchise buying interests:

Step 1: Self analysis - Do an honest analysis of your personal strength, weakness and find out what kind of businesses you are passionate about and which areas you would not enjoy. Before planning to buy a franchise you should know and love the business that you plan to be a part of. Find out what kind of skills and abilities you have to help you in your search for the right franchise business.

Step 2: Financial situation analysis - Next step would be to find your net worth. If you have carefully gone over your own financial information, you should know exactly how much you want to invest as well as the highest possible number that you can afford to invest. Keep in mind that you will need start-up costs, franchise fees, back-up funds, and enough to live on without an income for at least one year, most likely two. In case you are not aware of how much it costs to buy a franchise, you can contact few business brokers around you and check franchise listings for sale to know the market conditions.

Step 3: Gather Right Intelligence - Keep your eyes peeled for industry information in your chosen franchise sector. Finding out if there is a continuing market for the franchised product or service is a crucial step in your search for right franchise opportunity. Take a look at the competition in the market you will be in, where the industry is going overall, and the sales potential of the product or service in your market. When you find an opportunity that you like, contact the franchise business representative or hire a business broker to investigate the opportunity and to help you in franchise buying process.

Step 4: Seek Professional Advise - Once you are serious about your franchise search, hire a professional business broker, who specializes in listing various profitable franchise opportunities in your area of interest. They will have attorneys, accountants and financers in their team to give complete support. Speaking to them will give you clearer picture of all that is involved. They will help in setting up meetings with other franchisors so that you have practical viewpoints and experiences from insiders to help you make the right decision.

Step 5: Hunt Resources on Franchising - Start collecting information and resources to help you in your research efforts to check best franchise opportunities. Seminars on franchising are often scheduled through Small Business Development Centers (SBDCs), located at larger universities and colleges. Your business broker is also an important resource for information provided you ask the right questions. Start taking active initiative and doing research in your chosen field in order to come up with all the right questions before you make the plunge. Follow the Boy Scout motto “Be prepared”.

Step 6: Narrow your Search - After carefully laying the groundwork and doing your homework, it would be easier to narrow the search and make it more ‘you specific’. By now you should have a firm grasp of what exactly fits your requirements and goals. Consider following important aspects for any franchise opportunity that attracts your interest: Demand, Competition, Brand recognition, Franchisor training and support, Growth opportunities, earnings and comparisons with other opportunities within the similar industry.

Step 7: Decision Making - The moment of deciding to buy a franchise would be easier if proper due diligence is followed as shown in above steps. If you still find the opportunity not quite right for you, then you need to rework. A professional business broker who has worked with many franchisee aspirants would know how to deal with potential issues and problems and would put their experience to good use to help you out.