Taking those first steps towards entrepreneurship can be an exhilarating rush. The thought of not having a boss, making your own hours, and calling the shots, is what most workers dream of. For some, that potential freedom may come in the form of buying into a franchise. “The advantage of a franchise is it’s a recognized name,†says Doug Boyce, director of the Small Business Development Center. “You don’t have to go out there from scratch establishing a reputation.â€
But unlike a startup, franchises come with a load of rules and guidelines. And if you’re diligent in your research, buying into a franchise can be a long-term, unfruitful commitment. With information from Boyce, Randall S. Hansen, founder of Quintessential Careers and FranchiseHelp.com, BlackEnterprise.com created a franchise quiz. Before you make that move into world of franchising, take this quiz to see its right for you.
(Also, check out 20 Recession Resistant Franchises)
1. How true is this statement: Infusing creativity in professional or business ventures is necessary for me?
A.   Partially true
B.   Completely true
C.   Completely untrue
2. In an ideal work environment, how necessary is flexibility?
A.   Somewhat important
B.   Very important
C.   Not important
3. Since franchises are already established, with becoming a franchisee, success is guaranteed.
A.   It depends, but I understand with a franchise the risk is lessened
B.   False
C.   True
4. Being in total control and the sole decision maker is part of why I want to become a franchisee.
A.   Partially true
B.   True
C.   False
5. Do you have at least five years of managerial or teaching experience?
A.   Yes
B.   Less then five years experience
C.   No, I never held a managerial or teaching position
6. How do you feel about performing in a sales role?
A.   I like convincing people to buy my product or service
B.   I’m not crazy about making sales but I know it’s important
C.   I hate to make sales and would not expect to be involved in sales in any way
7. Are you ready to work long hours to make this franchise succeed?
A.   Yes, I willing to work as many hours as it takes
B.   Possibly, but I have a personal life too
C.   Not at all
8. Can you lead or complete projects on your own?
A.   Yes
B.   Possibly, but I prefer structure
C.   No, I need structure, staff, and supervision
9. Do you like to follow established rules to achieve an objective?
A.   Yes, why reinvent the wheel
B.   No, I prefer flexibility
C.   It depends, I like to mix new methods with existing rules
10. Do you have cash reserves to spend on a preexisting business?
A. Yes, I’ve been planning and I am financially prepared
B. No, but I get it
C. No, I will start making money immediately
A=3 points
B= 2 points
C= 1 point
Scores:
0-15 — Franchising may not be for you. Depending on the franchise, quickly generating revenue may not be a sure shot. While the success rate for franchise-owned businesses is significantly higher than for independent businesses, no individual franchise is guaranteed to succeed,†says Randall S. Hansen, founder of Quintessential Careers, a career development Website. Given the long hours and sometimes heavy upfront fees, ask yourself, “are you ready to run your own business,†says Doug Boyce, director of the Small Business Development Center at Binghamton University, in Binghamton, New York.
For more on becoming an entrepreneur or understanding franchises, check out:
16-21 — Franchising may be a good fit, but do your research. Make sure you can cover the start up costs needed to buy into a franchise. Also make sure you know exactly what type of franchise you’re most suited for. “If you don’t do as much research as you should have and find yourself with the wrong franchise, you may be stuck for many years,†says Randall S. Hansen, founder of Quintessential Careers, a career development website. Full fledged entrepreneurship may be your actual calling since one of the drawbacks of buying into a franchise is the “contracts [that] have very explicit standards, allowing little or no alterations or additions to the brand, stifling any creativity on the part of the franchisee,†Hansen says.
For more on starting a small business check out:
Small Business Administration’s Small Business Planner
22-30 Franchising is right up your alley. You’ve obviously given the idea of franchising heavy thought and you’re ready to put in the long hours it takes to run a business, and participate in the marketing strategy programs, sales training and mentorship programs that many franchisors offer. “The best thing about a franchise is that you’re not alone,” says Doug Boyce, director of the Small Business Development Center at Binghamton University, in Binghamton, New York. “Most franchising companies offer a total business package, along with thorough instruction in its use,” he adds. This is likely what partially drew you to the idea of becoming a franchisee.
For more on becoming a franchisee check out:
International Franchise Association
Further Reading:
20 Recession Resistant Franchises