The American dream for many includes starting and running their own business. However, the actual process of turning that dream into reality is often quite daunting, and most never even start because of the hurdles.
Following a Successful Formula
An increasingly popular way to become your own business owner is by purchasing and operating a franchise. You can now find a successful formula for businesses in more than 300 niches, and franchisors who will sell you that formula along with a load of support and advice.
Thousands of new franchise owners choose this route, largely due to the advantages of having the oversight of an experienced franchisor. This way you can also rely on a proven and trusted brand and know the basic expectations for their business before they start.
The concept of buying a franchise has become so common, in fact, you can often secure a loan from your bank or credit union just as you would for a home or new car. Of course, your personal credit rating is important in securing such financing, but this provides a great way to purchase that new opportunity. Saginaw Medical Federal Credit Union suggests getting a credit report done before going in to apply.
Opportunities without Guarantees
It is important to realize that there are no guarantees of success in business, even when you are teaming up with a proven franchisor and brand. Even when you become a business owner via the franchise route, you must follow the basic concepts that apply to all profitable and successful businesses.
While there are a few one-person franchises, you will most likely be hiring and managing people in your business. This is the biggest challenge to many entrepreneurs and business owners, and you have to make having good people a top priority.
Having the formula is just the beginning. When you open your franchise for business, you will be ahead of most entrepreneurs starting solo. You will have a brand, systems, an operating manual, and a support resource who knows your business. However, it is your sweat and effort that will turn that recipe for success into a profitable enterprise. That means work, and that seldom works with anything other than a hands-on owner. So if you are considering absentee ownership, it’s wise to think again.
You have to manage your cash flow carefully. More companies fail over poor cash flow management than any other reason. Make sure you know where you are financially in your business.
If you avoid the surprises and work hard, you will be ensuring your dream of business ownership doesn’t turn into a nightmare.