Choosing the right franchise

You're interested in buying a franchise, but how do you know which franchise is right for you? Which franchise will suit your individual knowledge, skills, goals and preferred level of involvement? By choosing the right franchise, your chances of success increase substantially - most failed franchises result from a buyer not doing sufficient research to find the franchise that suits him best.

Franchises are not independent businesses

The first thing any franchisee must realize is that a franchise is not an independent business. Franchising is not for you if you are the type of person who needs exacting control over your business. Do not forget: when you purchase a franchise, you are simply providing the capital to enable another person's dream, idea or product enter the marketplace. Why? Because it has already proven its worth - it works.

Most independent businesses fail within 3 years of their launch. A large amount of capital, time, energy, and personal sacrifice is needed to make an independent business succeed. Don't let this deter you, though, if you have a big, new idea for a product or service that you are sure consumers cannot live without - perhaps establishing an independent business is the way to go.

There are many resources available to help you decide whether your business idea is worth pursuing.

Check out the Service Corps of Retired Executives (SCORE) (www.score.org). The Corps partners with hte US Small Business Administration (SBA) (www.sbaonline.sba.gov) and offers the advice and counseling of retired business executives to those thinking about starting an independent business. SCORE can help with financial planning, creating and following a business plan, and other issues that are critical to starting a business.

The Small Business Development Center (SBDC) (www.sbaonline.sba.gov/sbdc/) is another organization affiliated with the SBA. The SBDC has 63 of its own centers across the nation, as well as more than 1100 offices within local schools, colleges, and chambers of commerce. Your local SBDC can provide you with technical & management assistance for your independent business.

Before establishing an independent business, you should do extensive market research on your idea. Is it appealing to consumers? Will it have a market? Have SCORE and an SBDC review your findings and point out any weaknesses. Also, be sure that your idea is economically feasible. Will your costs (rent, inventory, taxes, fees, payroll, insurance, legal fees) be covered by your revenue? Is your product pricing fair? Do you have a supportive & reliable bank? Once again, use SCORE and an SBDC to be sure your financial calculations make sense.