While many franchisees plan for economic downturns,...
Being a franchisee in Canada can be immensely rewarding, as long as you are ready to step into this type of role. Before you sign your franchise agreement, here are two things to consider.
Know when it's time to buy
The "right time" to transition from an employee to a Canadian franchisee is different for everyone depending on both personal and financial factors. Generally speaking, however, if you find yourself driven to be an entrepreneur but don't want the full risk of starting your business from the ground up, it may be time to consider making your move.
A solid franchise already has the idea, platform, branding and marketing, so you'll have advantages as a franchisee that a business owner striking out on his or her own would not have. Keep in mind that you'll still have to work hard and invest time and money to be successful, but you will have support and other advantages within a proven franchise system.
Be ready to shift your mindset
As an employee, you're used to having an instant-gratification mindset for work. You work, you get paid at the same time each week or month, and your vacation and sick time is predictable. As a franchisee, your work mindset needs to shift toward delayed gratification. There will be some short-term pain in exchange for your long-term gains, and this can come in the form of lower earnings and less free time from your work at the start. You'll also have to create a business plan that covers at least three years, which is something you would not have to do as an employee. The more comprehensive and clear your plan is, the better chance you have of hitting your goals.
Once you have your goals and your franchise, there is one more angle to consider in your new mindset, and that's hiring employees. Finding the right people for each position available is crucial to your success, and it's not something you likely had to deal with as an employee. Make sure you have a comprehensive understanding of all the roles and responsibilities of each job in your franchise so people know exactly what they are being hired for, and be prepared to invest some time into your hiring process. Having an organizational chart so each employee knows whom they are reporting to can cut down on confusion from the start.
Setting yourself up for success as a franchise means transitioning at the right time and with the proper mindset. Evaluate your life and your mindset to ensure a franchise is the right move for you right now.