Taking advantage of a franchise opportunity is a great way to become a business owner and enter an industry in which you are interested. However, any business endeavor is a risk, and ensuring that you are taking a calculated risk is important to the future success of your company.
In order to make the most informed decision before diving into business ownership, there are several considerations you should weigh, as outlined below.
1. Upfront costs and fees
Out-of-pocket costs are important to determine before signing a contract to own a business. While prospective owners may be aware of the costs associated with purchasing a facility and managing utility bills, there may also be a number of fees and expenses that can throw off a new owner's budget. For instance, owners may be required under the franchise contract to lease property or equipment directly from the franchisor, or pay the franchisor a percentage of their annual sales.
2. Potential restrictions
Each franchisor will have their own restrictions and limitations on franchise owners, making it important for you to understand these rules - and ensure that you're okay with them. For instance, you might be required to purchase supplies from specific vendors, meaning that if you wanted to save money by purchasing similar items from a more affordable company, you will be prohibited from doing so. Therefore, it's important to note the scope of control you will have on costs, arranging your franchise and other important business elements.
Many people enjoy being their own boss because they have more leeway, authority and flexibility over their schedule and business operations. It's important to ask yourself if the franchise you plan to purchase will afford you the level of flexibility you are seeking, and if not, how you plan to manage your time. Is there another employee you trust who can help you manage operations or will you be solely in charge of the entire business?
4. Exit Strategy
Owning a business can be a wonderful experience, but when it's time to retire or simply sell the company and move on to another venture, it's important that franchise owners know the right course of action to take. Depending on the contract, franchise owners may be permitted to sell the business to another person, or they may be required to sell it directly to the franchisor. Additionally, it's important to know whether owners will be required to pay a fee to sell their business.
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!