Financial questions
- Have you and your spouse and knowledgeable family members discussed the idea of going into business for yourselves?
- Are you in complete agreement?
- Do you have the financial resources required to buy a franchise or small business? If not, where are you going to get the capital?
- Are you and your spouse ready to make the necessary sacrifices in the way of money and time in order to operate a franchise or small business?
- Will the possible loss of company benefits, including retirement plans, be outweighed by the potential monetary and self-pride rewards that would come from owning your own business?
- Have you made a thorough written balance sheet of your assets and liabilities, as well as liquid cash resources?
- Will your savings provide you with a cushion for at least one year after you have paid for the franchise or small business, allowing a one-year period of time to break even?
- Do you have additional sources of financing, including friends or relatives who might be able to loan you money in the event that your initial financing proves inadequate?
- Do you realize that most new businesses, including franchises, generally do not break even for at least one year after opening?
- Will one of you remain employed at your current occupation while the franchise or small business is in its initial, pre-profit stage?
- Do you know an experienced, business-oriented franchise attorney who can evaluate the franchise contract you are considering?
- Do you know an experienced, business-minded accountant?
- Have you prepared a business plan for the franchise or business of your choice?
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