10 Good Questions Before You Buy
I have a friend who is interested in buying a small business franchise. She is just starting to look into the franchise business opportunity and discovered these points as some questions you should ask yourself if you are thinking of buying a franchise.
1. Have you and your spouse or business partner discussed the idea of buying a small business franchise?
2. Are you in complete agreement?
3. Once you have picked a small business franchise do you have the financial resources required to buy a franchise? If not, where are you going to get the capital?
4. Are you and your spouse or business partner ready to make the necessary sacrifices in the way of money and time in order to operate a small business franchise?
5. Will the possible loss of company benefits at your present employment, including retirement plans, be outweighed by the potential monetary and self-pride rewards that would come from owning a franchise?
6. Have you made a thorough written balance sheet of your assets and liabilities, as well as liquid cash resources?
7. Will your savings provide you with a cushion for at least one year after you have paid for the franchise business opportunity you chose, allowing a one-year period of time to break even?
8. 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?
9. Do you realize that most new businesses, including buying a franchise, generally do not break even for at least one year after opening?
10. Will one of you remain employed at your current occupation while the small business franchise is in its initial, pre-profit stage?
All excellent questions and need to be addressed before making a commitment.
