When you are looking for a franchise to buy, there's a lot of due diligence that needs to be done. One of the things that I would recommend that you look for is current franchisees who are opening up additional locations. When a franchisee is opening up additional units it tells you a couple of things, number one is that there's a very high likelihood that they are either making money with their first location or they feel comfortable with the support and training that they are getting and the trajectory that they are on to continue to expand. Scalability is one of the most important elements of franchise success and opening additional units is a great sign of scalability. Multi-unit owners are really important in franchise systems that don’t have a 10 or 20 year track record. Everyone knows that McDonalds, Taco Bell and Subway have expandable and scalable systems, but if you are buying into a newer franchise system the importance of multi-unit owners is magnified. A lot of this relates back to the issues that I have mentioned previously, namely a proven track record and the support and training that you receive from your franchisor. With everyone looking for a new and exciting franchise opportunity, looking for franchise systems where franchisees are opening up additional units is a great place to begin your search! 

Ok, so here’s the deal, according to a recent article I read, a new franchise starts in the United States about every 8 minutes. There are several things that bother me about this trend. Number 1 is that many new concepts have no history of operating successfully, so how does a business know that their systems works and can be taught easily to franchisees? Furthermore, without going through all kinds of economic environments and all the various issues that a business can face over a long period of changing business climates, how do you know if the concept will stand the test of time? One of the biggest advantages that I see of buying into a franchise is the “benchmarking” that they are able to do for a franchisee to make sure they are on pace to succeed - and those metrics only come from watching a business over a long period of time. If a franchise can’t show you a track record of success, don’t risk trying to create one for them! 

Ever heard the saying, slow and steady wins the race? It applies a lot to franchising. When I was a stockbroker, guys in the office were always coming up with a “hot” stock pick. Most of the hot stock picks my clients and I invested in never worked out. Sure, they may have gone like gangbusters for a while, but they usually flamed out after a while and plummeted back to earth - and took my money with them! Meanwhile, the older guys in my office were always buying Blue Chip stocks, which means that these were stocks with steady companies in steady industries that did well in any environment. This is why I think there's an interesting comparison here between franchising and buying stocks.

Professionals who have spent numerous years working in the corporate world sometimes will find that they’re ready for a new challenge. After researching their options, many of these career shifters are choosing franchising. Why? Well, usually it boils down to people simply wanting to be their own boss, and being able to more capably utilize their unique skill-set to build wealth. They also realize that starting a business from the ground up is hard!  Investing in something that has most the kinks already worked out is a real advantage.  And even though running a franchise business offers many advantages over simply starting a business on your own, there’s still some unique challenges that potential franchisees might want to consider. Following is a list of some of those challenges an individual might want to think about before making the leap to owning their very own franchise business!

Running your own small business can be a difficult, yet extremely rewarding time in your life. Not only does it take being able to understand market demands, but it also means having a small business plan (a process and product in place) that will support the business, as well as provide an income for the owner. While many potential small business owners may have a great idea for a business, business growth and long-term success requires being able to be focused, disciplined and at times - an out-of-the-box thinker! Below are some of the essentials that can help your small business build success.