Part 2: Finding the right franchise for your financial situationSo now that you know which personality traits and skill sets you have that you might find useful its time to consider your personal finances.
Not only should you consider the up front purchase price, franchise fees, fitout if necessary, vehicles costs if required, and things like stock and landlord security deposits and bond etc. You must also work out how you and your family are going to survive if the franchise you have chosen does not make profit for a while.
Most small businesses including franchises need some time to make profit and generate an income for the owner. The advantage of a franchise is that this time is normally a lot shorter than a new business started from scratch.
Most franchise systems will help you with ideas, systems and marketing strategies that have been proven to work. This will accelerate the startup process a lot, but that does not make it non existent.
You will have to make sure that you allow for best and worst case scenarios when putting together your business plan. Build in some fat at the expenses end, as you never know what will pop up. Also make sure you can pay for all of your essentials and don’t get kicked out of your home.
You should also realise that you will need to initially make some sacrifices on the personal luxuries front for a while. You will need to tighten the belt a bit, but please don’t over do it either. Balance is important. You still want to enjoy this time and have a life and an enjoyable family life too.
Ask your accountant to help you with this, their expertise will really come in handy.
Written by Elton Williams