You’re Buying A Franchise? First Question To Answer Is: Why?

Why do you want to buy a franchise?

Even before you begin your online search to find a franchise of your liking, or before you click on that tweet that promises to lead to the American Dream, or you step foot into a franchise expo, the very first question to ponder and answer is: Why?

People buy franchises for many different reasons, and sometimes the reasons just aren’t very good.

“My boss is an idiot” sounds like a good reason

For example, I frequently talk to people who say they’re buying a franchise because:

• “I’m tired of making money for other people. It’s time I do it for myself” or
• “Because I lost my job and I don’t know when I’ll find another one. With the way things are going, I might lose that one, too. So I’m buying a franchise to protect myself.” or
• “My boss is an idiot! I’m tired of him controlling me. I want to be in control!”

Those are answers, but they’re not good answers. They are emotional reactions to situations; not justifications for investing tens of thousands of dollars to buy a business that will–at least for a while–control your life.

Emotional reaction can be mistaken for a good reason

Emotions are great motivators, but when we react to them we sometimes end up worse off than we had anticipated. Divorce makes my point. As do bank repossessions. And Ponzi schemes! Franchises are not Ponzis, but the consequences can be just as devastating if your reasons for buying a franchise aren’t realistic.

Some questions to help you dig deeper

So dig deeper. Come up with several rational explanations for your decision. Here are 10+ questions that will help you answer the Why question:

1. What do hope to gain by owning a franchise?
2. What motivates you? Making money? Providing a value service or product?
3. Are you looking for a job replacement?
4. Are you planning to make a career of your business?
5. Do you think a franchise is a replacement for a paycheck?
6. Do you expect the franchise to generate long-term wealth?
7. Do you see yourself buying and selling the franchise, like a stock?
8. What makes you believe that you can operate your own business?
9. When times are tough, what will motivate you to persist so that your franchise doesn’t fail?
10. If the franchise fails, what then?

Building your business will be challenging

While there are no right or wrong answers to these questions, or to the Why question, it’s nonetheless important that you understand why you’re buying a franchise before you do so. Starting, operating and building a satisfying and profitable business is likely to be one of the most difficult challenges of your life. Maybe the most difficult. So don’t skip this question!

Why is just the beginning

And once you answer Why, it will be easier to answer What.

Yep, Why is just the beginning of my interrogation. But hey, you want to make a wise choice when you buy a franchise, don’t you?

Photo by: Dave Hamster

Categorised in: Buy a Franchise

This post was written by Dr. John Hayes