by Joel Libava

Created on: June 21, 2007

If owning a franchise was easy,everyone would be a franchise owner! The majority of potential franchise owners I consult with do not end up purchasing a franchise. The reasons include:
1. Received a great job offer
2. Fear of losing money
3. Fear of not producing income rapidly enough
4. Can't get excited about any of the opportunities presented
5. Spouse or significant other is not "on board"

6. Too many restrictions imposed by the franchise

All of the reasons above are valid, and I discuss these with my candidates before we even meet face to face.
Let's discuss these one by one....

Some of my candidates are on what I call a "dual track". They are interested in exploring franchise/business opportunities, but are also sending out resumes, and interviewing. In general, most of my candidates are not really putting too much time and effort into pursuing a traditional job, but occasionally, a candidate of mine does land a nice job, that is a nice fit for them. Interestingly enough, I have found that a percentage
of these candidates contact me a year or two later, after being downsized form their jobs, and restart the franchise/business opportunity search process again, with some investing in a franchise this time.

Yes, you can lose money in a franchise/business opportunity venture, just like any other investment, whether it is a stock, a rental property, or anything else that has no guarantee stamped on it, like a bank savings account. With proper guidance {hint hint] you can lower your risk, but still it is a real risk to get into your own
business. Risks

When you invest in a franchise start -up, do not expect to draw a paycheck at the beginning. This is the most difficult part of a career transition from employee to business owner. {And sometimes from employee to employer} I recommend that before you invest in a franchise/business start-up of your own, you have 6-9 months of living expenses set aside. Living expenses should include your monthly household expenses, plus some emergency money. if you do not have living expense money stashed, the next best thing is to have a working spouse of partner that can cover the monthly household expenses, or a major portion of them.

I tell my candidates not to expect the lights to flicker on and off in my office, and music to start playing unexpectedly, when I offer specific franchise concepts as a possible match. Generally, the excitement builds as you learn more and more about the concepts, and start talking to and meeting with the franchisees..who

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