When you have strong credit, your franchise's financial...
Searching for a franchise in Canada can be overwhelming at times. There are a lot of brands in different industries to chose from, and it can be difficult to decide which system to join.
How you perform your franchise search will affect your results and influence your final choice, so here are some common search errors to sidestep.
Staying in your comfort zone
Many franchises don't require specific experience, but this doesn't stop people from sticking to only what they know when they're searching for an opportunity. In reality, your perfect fit could be a brand in an industry you've never worked in or been exposed to.
Explore industries that interest you, not just the ones you're familiar with. While having some sort of passion for your franchise isn't a requirement to make a profit, it can certainly help propel your business.
Looking outside of your budget
There's no point in wasting time and money looking into franchise opportunities you can't afford or that are outside of your comfortable investment range. Take a close look at your financials so you know what investment level you can comfortably operate in, and limit your search to brands within that range.
While it can be tempting to invest in a great opportunity that's outside your price range, keep in mind that your business will likely not turn a profit in its first few years of operation. This is normal; you need to build it from the ground up, and there are costs and expenses associated with that. If you overextend yourself at the start, you will struggle and the business might fail.
Exploring the brand but not the associated industry
The industry a brand is in has an impact on its success. Even the most well-known franchises struggle when there's a downturn or upsetting trend in their industry.
Since the state of the industry will have a direct impact on your business, it's important you take the time to explore it. Look at the overall state of the industry and its current trends, both positive and negative. Consider where your brand fits in the grand scheme of things and what industry factors could impact your success.
A comprehensive, effective franchise search and selection process is the beginning phase of a successful business. Take all the time you need to search for your new business to ensure you're making the right investment.