You’ve told anyone who will listen how you want to open a franchise one day, and people are starting to ask: when?
It can be scary to take the leap and actually quit your job to start a business, so run through this checklist to determine if it’s time to jump in with both feet.
Have You Analyzed Your Market?
Before you buy a franchise, it’s important that you understand who you’ll be selling to, and who else you’ll be competing against. If, for example, you want to open a gutter cleaning franchise , but there’s already a local company that’s established itself as the leader in the industry, that might not be the best decision for you.
Have You Created a Budget and Secured Financing?
Beyond your franchise fees , there are many other expenses associated with opening a franchise. You’ll need to budget for startup costs, inventory, payroll, equipment, and your own salary for at least the first year.
Then, you’ve got to know how you will cover these costs. If you have the money in savings, wonderful. Otherwise, you’ll need to consider financing options , whether that’s through the franchisor, the SBA, or another source.
Have You Talked to Your Family?
Your family will be affected by you buying a franchise, even if you don’t think they will. For one, your schedule will be pretty busy, at least initially, as you get things up and running. Once you quit your 9 to 5, money might be a little tight. Make sure you have your family on board with realistic expectations about how you starting a franchise will affect the family dynamic.
Have You Talked to Franchise Owners?
You can get a good sense for what launching and then running a franchise is like if you talk to people who already own and operate a franchise with the brand you’re considering. You may be surprised at what you learn. Maybe you find out that several owners didn’t hit profitability for several years, where you were expecting it within a few months. This can give you a reality check; it’s not too late to change course if you don’t find the answers you were expecting.
Have You Got Your Business Plan?
Having a business plan for your franchise is like having a map to success. It helps you understand your products or services, your customers, and your marketing plan. Having this in place before you quit your job is important because it gives you a guideline for where you want to go.
Tips for Pulling the Cord
Even if you’ve become disgruntled as an employee, you don’t want to burn bridges, so plan your exit strategically. Give your boss as much advanced notice as possible so he’s got time to hire and train your replacement.
It might be possible to launch your franchise while keeping your day job, if it requires relatively little time investment. This is a smart idea if you want to self-fund and don’t yet have enough to do so. Having the security of a steady paycheck a while longer can be a huge help.
The key to quitting your job and starting a franchise is having a plan and doing your homework.
Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.