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Self-reflection essential before taking on franchise

By: Paul Smithson
09 December 2011

People should take a moment to reflect on their skills before signing up for business franchise opportunities.

Writing for CNBC, author Joel Libava explained that some self-analysis will allow individuals to understand if they are suited to taking on a franchise.

In his opinion, one of the key areas is how people respond to the need to follow rules, since a major part of running a franchise is abiding by guidelines set out by the franchiser.

Mr Libava pointed out that people should understand the nature of the agreement before they sign up, but went on to stress that a well-suited franchise can allow businessmen and women to "win".

"It's been called the greatest business model ever invented, and has enable hundreds of thousands of people that never owned a business before to do just that; become owners of their own business," he added.

Many individuals may be attracted by the income guarantees offered by some franchisers, according to the Franchise Advisory Centre's Jason Gehrke, who told startupsmart that they help ease the transition from a fixed income to the irregular income of a self-employed worker.

But Mr Gehrke urged people to look beyond this type of financial incentive and consider the whole venture when deciding which project to pursue.

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