The Educated Franchisee - Part 2 - The Perfect Franchise

Posted on July 05, 2011 by Melissa Lim

How do you find the perfect franchise for you?  In this article, part 2 of 6 from The Educated Franchisee, we will discuss five approaches to choosing the perfect franchise.

Passion Approach

Do what you love… If only it were that simple.  If that was all it took, 90% of all businesses would not fail in the first two years.  A lot of people go with this approach.  I love to bake, I'll open a bakery.  But I know nothing about managing people, marketing or accounting.  UH-OH.

Scarcity Approach

This area lacks a great deli, computer repair shop, fast food joint, whatever it is, and you decide to fill the hole.  This has a little more logic behind it but it still lack the assurance of financial viability or your ability to operate one of these businesses.  It might meet the neighborhood's needs but does it meet yours?

Security Approach

If the franchise has a big brand name behind it and lots of locations, it must be a sure thing.  Not necessarily, particularly in today's fast changing competitive landscape.  A lot of times you will find newer franchises are better at things like the social marketplace and have a higher rate of return for their franchisees.  And even if the brand is proven and has all the pieces worked out, it still doesn't meant that you are the right franchisee.

The Lemming Approach

The #1 approach to franchising…  What's Hot?  What's Everyone Else Doing?  Can anyone say FroYo?  But how viable is this industry you're (and everyone else!) considering?  Will it stand the test of time? And even if it will… guess what still doesn't mean it's the right franchise for you.

The Educated Franchisee Approach (you saw this coming, didn't you!)

 To find a business that fits YOU, you have to start with you…

Catalog your skills.  Analyze previous jobs that you've been successful at and the skills that made that happen.   Did you manage people, organize things, sell, etc. 

List the functional areas of business and your strengths within them.  This would include things like bookkeeping, outside sales, inside sales, networking etc. 

Now use these 2 lists as "check lists" against all the franchises you are considering.  Match your skills and strengths to the necessary skills of the franchise.  By doing this, you will be able to improve your odds of success. Remember you're buying a business.  It can be any business.  It might not be what you thought it would be when this all shakes out, but every step of the way, you should use the above list and ask yourself, "Would I hire me to manage this business?"

Read Part 1: What's Stopping You?

This article series is based on "The Educated Franchisee – The How-To Book for Choosing a Winning Franchise" by Rick Bisio - Available through all major resellers.  For more information on the book and Rick, please click here.