What should you consider before buying a franchise?
- Thursday, May 17, 2012
Once you’ve decided to open a franchise, it is time to set up a game plan to get the entire operation up and ready to go. There are 75 different franchise groupings available, and each contains hundreds of business opportunities. Since these choices represent a major investment, due diligence is required to determine which franchise is right for you.
A franchise opportunity requires attention to detail. You need to know the details about your own financial backing and what the franchise brand requires of its partners. The Federal Trade Commission has a succinct list of questions to ask before signing on the dotted line and committing to a business venture.
Here are four steps to take before buying a franchise:
1. Evaluate your finances. Before ever making a significant financial investment, evaluate the liquid cash you have available. Get hard figures on your current account balances and then determine how much money you are willing to spend to prevent possible overspending. Outside financing options can also help, but could depend heavily on your credit score and past financial history.
2. Determine immediate costs. Going into a franchise venture with the proper knowledge can significantly increase your ability to succeed. Therefore, look for brands that are well within your price range. Make sure to consider the upfront sticker price and the associated fees.
3. Set an annual income requirement. A franchise owner needs to know how much money they need to sustain themselves in an appropriate lifestyle. Workers who are employees of an organization are guaranteed an income at specific allotments of time. Franchise owners often do not have that comfort - you will have to prepare for lean months with a savings plan.
4. Chose an ideal work situation. Do you like to get out of work at 5 p.m. every day and leave the decision making up to other people? Or, are you prepared to work diligently as the business venture gets off the ground? These questions and more have to be answered honestly if you are to decide what type of venture is appropriate for you. A business partner may be needed to take part of financial responsibility and provide feedback.
The Liberty Tax Service franchise opportunity is appealing to a diverse America, and ranked highly for its affordability and potential. Entrepreneur magazine has ranked Liberty Tax Service on its “Franchise 500” list of best franchise opportunities since 1998. Liberty Tax Service is the only tax franchise
on the Forbes magazine’s “Top 20 Franchises for the Buck.” (2012) Our tax franchise is an affordable and viable business choice. Each office provides thorough, computerized tax preparation coupled with superior customer service. For the best small business opportunity
in the income tax franchise industry, choose Liberty!