Finding Your Ideal Business

By Pamela Gold

Where Should You Start?
First, you need to learn about yourself and your needs and goals. Once you've discovered this information about yourself, learn as much about the franchise industry and the various types of businesses you can buy. When you have a thorough understanding of how the franchise industry works, you can begin looking for your business. "In order to effectively search for the right business, you must understand yourself, the franchise industry, and you should be able to identify the categories within franchising that you're most suited for," explained Marc Kiekenapp, Executive Vice President of FranchiseBuyer, a franchise consulting network.

Kiekenapp continued, "Get your hands on any information and articles you can find. Go to websites like the IFA's site and FranchiseSolutions.com. Learn as much as possible about buying and owning a business." Begin your search by either browsing through magazines and the Internet, or contact a reputable business broker.

Questions you need to ask yourself before searching for a business...
Learning about yourself and your needs and goals takes serious thought. Here are some questions to get you started*:

Why am I exploring the option of owning my own business?

What am I seeking in a business?

How much can I afford to invest at this time?

When you start looking at specific opportunities, here are the specifics you should ask yourself:

Would I enjoy performing the activities and services conducted by COMPANY X franchisees on a daily basis?

Is the income earning potential in the range I am seeking?

What aspects of this business do I like? What aspects do I not like?

Would this business not only give me the income I seek, but also the flexibility to enjoy the non-business components of my life?

Would I have fun building COMPANY X's franchise?

"I also recommend that prospective franchisees profile the top franchise owners from the company they are interested in. It's integral to speak with franchisees from similar backgrounds and with similar skills as yourself who have achieved success. Ask them all the questions you need answers to in order to feel confident in the opportunity," suggested Kiekenapp.

*Questions provided by Marc Kiekenapp, FranchiseBuyer, LLC

Using the Internet
The Internet has become an integral part of most American's lives. We visit the Internet for information, breaking news, and to make purchases, big and small. Whether you have a good understanding of yourself and what you want in a business or you want to learn the basics about franchising, a great place to start your search is on the web. There are many websites dedicated to matching prospective franchisees with business and franchise opportunities. Websites, such as FranchiseSolutions.com, offer easy to use search tools, as well as educational resources such as original articles and the latest industry news.

Matt Alden, General Manager of Franchise Solutions explained, "More and more over the past several years people begin the process of evaluating high-ticket, emotionally driven purchase decisions on the Internet. This is true of homes and cars, and franchises are really no different. We all love the anonymity associated with window shopping and, at the beginning of searching for a franchise online, this is what prospective buyers are able to do at websites like ours."

When you're ready to take the next step, narrow your choices, and decide on an opportunity, websites can take you where you want to go. "Once a prospective buyer submits an inquiry to one or more franchisors, they will be quickly engaged by those franchisors by phone, email or both. It's important to understand that franchisors receive hundreds of inquiries and, beyond some initial communication to acknowledge your inquiry, they'll focus their time and energy on those prospects that are willing to participate in an information exchange by which both parties get better acquainted and determine if there is a fit. So, get educated about franchising, be thoughtful about which franchise companies you inquire to, and be prepared to communicate frequently and effectively with those companies," suggested Alden.

Websites that showcase franchise and business opportunities offer a place for prospective franchisees to education themselves and make initial contact with franchisors. Ease of searching for the right opportunity, flexibility to search on your own time, and no initial pressure to buy are all positive aspects of using a website to search for your ideal business.

One Woman's Journey To Business Ownership
"I spent a lot of time looking around for a business. Nothing sparked excitement for me. My husband's business had failed years earlier, and I had little money to invest in a business of my own. I knew I didn't want to be a millionaire and I didn't want to hire and manage employees either. I feel like I'm too old to have a huge business, and I just desire a business that's suitable for me and my lifestyle," said Faith Elkins who is currently in the process of buying a U-Turn Vending Machines business.

After researching many businesses, Elkins discovered FranchiseSolutions.com and quickly found the business she was looking for. "I love FranchiseSolutions.com. There are so many business ideas and it seems like every industry and investment level is represented there. I used their convenient search feature which allowed me to search for a specific investment amount. On other sites, you have to look through all the businesses in a specific category to find the right opportunity. On Franchise Solutions' site, if I don't have $500,000, I don't have to look through all those opportunities. It was so easy to find the right opportunity," stated Elkins.

"I finally chose U-Turn for a few reasons. The company manufactures their own machines and those machines are so easy to market because they can be set up in small businesses, not just large supermarkets and public places. The opportunities to market the machines are endless. I just had a feeling this was the right business for me. Most businesses asked for too much money, or they required skills I simply don't have. U-Turn fit all my needs perfectly," explained Elkins.  

Using a Consultant
"Buying a business is a lot like buying a new home in a new city. When you are in the process of buying a house, you need to learn about schools, re-sale, taxes, utility bills, and more. You can do it all on your own by collecting all the information from various sources, or you can hire a real estate agent who has all this information already and can offer it to you. When it comes to buying a franchise, you can get the answers to all your questions by gathering the information in different places, or you can use a consultant," explained Kiekenapp.

Whether you're ready to buy a business tomorrow or you need plenty of coaching and education, a broker can help you. "With a broker network, the process of buying a business is moved along at a quicker pace. The process is fast and efficient, and less mistakes and bad decisions are made," said Kiekenapp.

Business consultants typically have many years of experience in the business world. Often, they've owned their own business, and should always have plenty of business knowledge. A strong understanding of the opportunities available and the current state of business and franchising today is a necessity for any reputable consultant. Consultants should get to know you, your goals, and your interests. With this knowledge and plenty of information about the quality opportunities available in your area and what those companies are looking for in prospective franchisees, the consultant can make an educated decision on what businesses will be a good match for you. Kiekenapp continued, "Business consultants know the answers to all your questions. We can't give you earnings claims, but we know what the earnings potential is for a specific company and we can guide you, and your specific needs and goals, to the right business."

If you're serious about buying a business quickly and easily, having a consultant work with you might be a great decision. FranchiseBuyer offers completely free consulting services to qualified prospective franchisees. You will never pay a dime for their services and their reputable consultants can quickly put you on the fast track to owning your own business.

Mistakes To Avoid
Making a mistake when you research or buy a business can be a costly, life changing event. A mistake can set your career back, become the source of many headaches, or even cause bankruptcy. So how do you avoid mistakes? Using a professional consultant is an obvious choice. Consultants know the ins and outs of buying a business, and they specifically know the positive and negative aspects of specific businesses. Consultants know how to evaluate the prospective buyer and match them to the right opportunity.

Whether or not you use a consultant, here are some tips to help you avoid mistakes and purchase the business of your dreams. First, you should never assume right away that a franchisor is trying to sell you a business. Most reputable franchisors will engage in a mutual discovery process, assessing whether or not you're an appropriate match for their company. Also, during the initial discovery stage, do not assume that a franchisor is strictly interested in how much money you have available to invest. A quality franchisor looks for a candidate that has the skills necessary to propel a franchise location to success.

Do not assume all franchise opportunities are legitimate! There are plenty of franchise and business opportunities available that may look profitable and genuine, with glossy information packages and a concept that seems to make sense. All opportunities are not safe places to invest your time and money. Do plenty of homework before you sign any contracts.

Keep your initial goals and dream in mind throughout the search process. Remind yourself of your dreams on a regular basis, and don't rush into anything. Again, you have to do plenty of homework: Visit the home office, call current and past franchisees, and investigate sources of financing. Finally, remember that until you sign a franchise agreement, you have not made a commitment to anyone. Do plenty of due diligence, and make sure the business you buy is the business of your dreams.