Investing in a franchise is a great way to experience the thrill of being a business owner without having to deal with much of the stress and risk connected to creating a business from the ground up. The way franchises are set up, you still get to be your very own boss while simultaneously reaping the benefits of working with an already established product.
While Oren Loni thinks franchises like Burgerim have a great deal to offer aspiring business owners, he is also quick to point out that not everyone will be a good fit. Before starting to explore different franchising opportunities, you need to take a look in the mirror and determine whether you really have what it takes to run a successful branch of a franchise.
Are You Prepared to be Your Own Boss?
The biggest difference between being your own boss and being the boss is that when you’re the one in charge, there’s no one to tell you what needs to be done or when things need to be completed. Many people don’t realize until after they’re already financially committed to a project that they really aren’t self-starters. The best way to determine if you’ll are a self-starter is to look at your current lifestyle: do you let things pile up until someone demands you finish something, do you start projects and frequently walk away with them only half finished, do you always wait for directions or do you plunge into a task as soon as you realize it needs to be started?
If you’re not already a self-starter, that doesn’t mean you can never own a part in a franchise. What it means is that you need to work on becoming more self-motivated. Once you turn self-motivation into a habit, you can once again explore the idea of purchasing a Burgerim location and making it your own.
Are You Looking for a Sure Thing?
As a rule, franchises like Burgerim are more likely to provide a return on your investment that a business that you build from the ground up, but that doesn’t mean they’re a sure thing. There’s always an element of risk. If you’re not prepared for the possibility of losing your investment, keep your money tucked into the bank and continue working for an employer.
You can minimize your risk by selecting a franchise that has a history of success, that provides support for individual locations, and by having a certified accountant look at financial reports before you sign any contracts.
How Will You Support Yourself While You Wait for a Return on your Investment?
Getting your own franchise location up and running takes a great deal of time and during that time, the franchise won’t be making money. In fact, it will be spending it instead. How do you plan on maintaining your own finances during this time period and still keep up with the demands that the getting the place up and running will put on your time? You should plan on it taking at least six months before the new establishment starts generating revenue, and it will be longer yet before you can expect a return on your investment.
Oren Loni isn’t trying to discourage you from purchasing a part of a franchise and running it as your own business. As the brains behind one of the fastest growing international franchises, he believes franchises have a great deal to offer people, he just wants everyone to know what they’re getting into before they find that they’ve bitten off more than they were prepared to chew.