Leaving behind the security of a 9 to 5 job to become your own boss is no small feat and you need to be sure it’s the right move for you. But the chance to put all that time and effort into running your own business can offer great rewards.
If you dream of owning your own business but don’t want the risk of going it alone then a franchise could be the opportunity you’ve been looking for. So how do you know when the time is right to quit your day job? Here are some things to consider to help you decide if you’re ready to take the plunge and become a franchise owner.
7 Things to Consider Before Buying a Franchise
- What sort of lifestyle do you want?
All franchise models are not all created equal and you might quickly realise the perks of your old 9 to 5 job if you end up working around the clock. So, before you buy a franchise, you need to understand exactly what you’re getting into, such as if you need to work weekends, or late nights to be successful in your chosen business.
There are a plethora of hospitality and food franchise systems where you may find yourself working 7 days a week. Alternatively, a B2B (business to business) model, such as Kwik Kopy for example, is open at the same time as our business clients i.e. 9am to 5pm, Monday to Friday. So think about the type of work life balance you’re looking for and the hours required to make you an effective leader in your business.
- Which is the best franchise system for you?
With so many franchises out there, it can be tricky to know which one is right for you. So, take your time to think about the type of business opportunities that will work best for you. Meet with different franchise organisations to get a feel for their business. Ask plenty of questions, compare company cultures and the level of support you’ll receive in terms of marketing, sales, processes, HR – you name it!
Think about the industries that you’re drawn to and look at who your customers will be. Take time to check out the competition and look at their products and services. Mystery shopping is a great way to gain insight into how competitors are performing and help you assess what you could do better to stay ahead.
- Is your budget ready? Do you know how you will finance your project?
Whether you plan on buying an existing franchise business or establishing a new business (often referred to as a Greenfield in the Franchise Industry), make sure you know exactly what investment is required and if the business generates the level of income required to cover your living expenses for the first year.
When buying an existing business, for example, you will negotiate the business sale price with the vendor and will also need to cover your franchise fees and other expenses such as: legal/ accountant fees, stamp duty, working capital, potential transport and accommodation costs to attend franchisor training, start-up costs, inventory and any equipment upgrade costs.
Once you identify all costs associated with your project, the next step is to look at how you will finance them. Do you have enough savings in the bank, investments you can easily convert into cash, or will you require a bank loan? One of the most common causes of business failure is a lack of funds. So it is important that you borrow enough funds to cover start-up costs and keep your business running day-to-day.
Note: Kwik Kopy Australia is an approved franchise system with some major banks. This means finance is easier to obtain for approved prospects.
- Is your family supporting you?
One factor that is often overlooked is that in most cases, the decision to buy a business is not an individual choice and may have consequences on your family. It is important you are getting full support from your family. What sort of expectations do they have? Do they understand and support you with the whole project?
- Should you talk to current franchise owners?
YES! It’s important to do your due diligence and talk to other franchise owners in your chosen franchise operation. A franchisor is always going to tell you the benefits of their system but existing franchise owners will let you know how this works day-to-day. Here at Kwik Kopy, we require you to speak to at least three (3) franchise owners of your choice. We think it’s important that you hear their story and have them answer the important questions you may have.
- How soon should you work on your business plan?
As the saying goes – if you fail to plan, you plan to fail – so it’s important to start working on your business plan. This will help you organise and map out the overall project and think about what it is going to take for you to be a successful business owner.
Factor in your thoughts about what you would like to change, amend, improve, plus all associated costs with your proposed plan. This will help you understand where you are, where you want to be and what it will take to get there. A plan will change over time and things you’ve planned today may not happen tomorrow, but that’s ok, the intention here is to think through the process and start plotting your roadmap to success.
- Are you ready to quit your 9 to 5 Job?
If you’re ready to quit your 9 to 5 job, then it’s time to start thinking about your exit plan. It is always best to leave on good terms with your existing employer. Try to give your employer plenty of notice, so they’ve got time to hire and train your replacement.
Don’t forget to check your employment contract. If you’re planning to buy a business offering similar products and services in an area nearby your employer, make sure there is no non-compete clause that you need to be aware of. Your boss may already be thinking about all the customers you might be able to take with you!
If you’re ready to take the next step in owning your own business, we’re here to help. To find out more about what it takes to join the Kwik Kopy System, send us an email enquiry at email@example.com or give us a call today on (02) 8962 8556.