If you’re thinking about using your severance package to buy a franchise, think twice.
That might not be the right option for you, warned Tom Lawrence, president of FranNet of Greater Richmond, a franchise consultant.
“That’s what my business is built on — trying to keep people from making a mistake,” he said.
Before rushing to failure, lay the groundwork for success.
Figure out these five issues before taking the leap into franchising:
Know what you want. You may have a vision of what you think you want to achieve by owning a franchise, and what type of franchise to get, Lawrence said.
Maybe you even know someone who runs that type of business and it’s doing great. So you’re excited and want to jump in, too.
But, if you do, you may quickly realize that it’s wrong for you, he said.
Perhaps in reality it demands too many hours of work, and you wanted more time with your family. Or it requires hiring lots of employees, but you don’t want to supervise workers.
If you don’t carefully match what you want with what the franchise business demands, you may find yourself stuck in a miserable situation, he said.
Prospective franchisees need to spend a lot of time compiling a list of wants and needs, he said. “Until that list is complete, they really do not know what they want.”
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