Checklist for franchise or small business suitability #2

To help determine how fit you are for buying and running a franchise operation or small business, use the following checklist for evaluating your suitablity as a franchise or small business buyer:

Personal questions

• Are you and your spouse physically able to handle the emotional and physical strain involved in operating a franchise or small business, caused by long hours and tedious administrative chores?
• Will your family members, particularly small children, suffer from your absence for several years while you build up your business?
• Are you prepared to give up some independence of action in exchange for the advantages the franchise offers you?
• Have you really examined the type of franchise or business you desire and truthfully concluded that you would enjoy running it for several years or until retirement?
• Have you and your spouse had recent physicals?
• Is the present state of your health and that of your spouse good?
• Do you and your spouse enjoy working with others?
• Do you have the ability and experience to work smoothly and profitably with your franchisor, your employees and your customers?
• Have you asked your friends and relatives for their candid opinions as to your emotional, mental and physical suitability to running your own business?
• Do you have a capable, willing heir to take over the business if you become disabled?
• If the franchise or new business is not near your present home, do you realize that it would not be beneficial to sell your home and buy one closer until the new venture is successful?

Business questions

• Do you and your spouse have past experience in business that will qualify you for the particular type of franchise or business you desire?
• Is it possible for either you or your spouse to become employed in the type of business you seek to buy before any purchase?
• Have you conducted independent research on the industry you are contemplating entering?
• If you have made your choice of franchises, have you researched the background and experience of your prospective franchisor?
• Have you determined whether the product or service you propose to sell has a market in your prospective territory at the prices you will have to charge?
• What will the market for your product or service be like five years from now?
• What competition exists in your prospective territory already?
• From franchise businesses?
• From non-franchise businesses?