Four things you should do before buying a franchise

If you’re ready to dump the 9-5 grind and be your own boss then consider buying  a franchise business

It seems like there’s a million different ways to earn money from home with your own business, and you may not know where to start. If you’re ready to dump the 9-5 grind and be your own boss with your own deadlines, hours and clients, then consider buying  a franchise, which has the flexibility of operating a small business with a much lower risk.

For professional moms who already have business skills, then an accounting franchise is a great way to work from home or a local office on your own terms. If you think a franchise may be in your future, then here are four things you need to do before taking the plunge.

1. Do your homework

Make sure that you’ve done a heap of research before committing to a franchise, and that you completely understand what you’re getting into. Request detailed information on company policies, costs and any market research the franchiser may have undertaken. It’s best to get a second opinion from an expert, so find a lawyer and accountant to run through the contract with you so they can point out any discrepancies and explain terminology you might not know.

2. Get advice

If you do choose to buy a franchise, you’ll be responsible for all the day-to-day aspects of running the business, like marketing, sales, human resources, finances, payroll, tax, insurance and stock levels. It’s a lot to take on at once, so make sure you have access to specialists that can help you, such as advertising consultants, lawyers, insurance analysts and tax experts.

3. Source your capital

One of the most common reasons why businesses fail is a lack of funds. You have to ensure you have enough capital to sustain the business for at least six months. Don’t plan on turning a profit in the first month or even year – setting up a new business takes time, and in the beginning, you’ll be locating your first few clients and nailing down business practices. It’s also important to have enough funds for anything that may go wrong – an employment dispute, an accident or any damage to your operating premises that will keep you from working. You don’t want to be caught out if a disaster hits, so make sure you’re prepared to cover yourself and your business in case the worst happens.

4. Get in the right mindset

One of the great misconceptions about running your own business is that it will be easy; in fact, it’s very hard work! Make sure that you’re mentally prepared to work long hours, including nights and weekends, and that it may be some time before you see some payoff from your hard labor. If you have a partner or spouse, it’s important to have their support, so they can help you when times are tough, either by working on the business or taking care of household maintenance so you can focus on the franchise. Ask yourself, can you accommodate business ownership in your current lifestyle, or will you be spreading yourself too thin with multiple priorities?

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