The franchise model is unique. It’s also proven to be a successful one for the right person. You?

By Joel Libava

No one can blame you for wanting to own a business.

But should you go the franchise route?

Is franchise ownership right for you?

Here’s how to decide.

Know Thyself

How well do you know yourself?

When was the last time you took a hard look at the things you’re good at-and the things you’re not so good at?

(Hint: This would be a great time to do it)

The reason I’m asking you this is because of the business model you’re thinking of using to be your own boss: The franchise business model.

The Model

The franchise model is unique. It’s also proven to be a successful one for the right person. You?

The right person for the franchise model:

  • Is comfortable following rules (There are lots of them)
  • Can take suggestions from corporate (Self-explanatory)
  • Is highly organized (You’ll oversee operations, sales, marketing, HR and more)
  • Is somewhat tech-savvy (You’ll be using a lot of technology)
  • Is high-energy and highly motivated (You’ll be working long hours)

Did I just describe you? If so, you should look at franchise ownership.

If not, either change or look at making a different kind of move, such as buying an independent business (as long as you are a high-energy, organized person) or looking for a new job.

Important: If you haven’t been known as a “rule-follower” up to now, franchising is not for you.

The Money

Once you’ve determined that franchise ownership is right for you, you’ll need to sit down and figure out where you stand financially. In other words, you’ll need to do a net worth statement.

If you haven’t done one yet, you are welcome to use my Free Net Worth Calculator.

In general, your net worth (assets minus liabilities) should be around $350,000—with a minimum of $50,000 being liquid.

The reason you’ll need to have around $50,000 of liquid assets available is because to get a small business loan these days, lenders require franchise business buyers to have skin in the game. There’s no such thing as a no-money-down small business loan. A good rule of thumb is to plan on coming up with 25 percent-30 percent of your own money when buying a franchise. (I’m figuring a franchise opportunity with a total upfront cost of $150,000-$175,000. If you’re looking at a $350,000 opportunity, you’ll probably need to have $100,000 or more of your own money in the game.)

The Life

The life of a franchise owner is not easy. The hours are long and the work is hard.

But here’s the thing: all your efforts (except the royalties you pay your franchisor every month) are going towards something that’s yours.

It’s your business you’re opening the doors to every day.

It’s your business you’re putting your own blood, sweat and tears into.

It’s yours to make a success.

The Commitment

Are you willing to make a commitment to hang in there no matter what? To tough out the difficult, early part of your franchise business startup?

Can you (and your family) live on minimal cash flow for the first year or two in your franchise business?

Franchise ownership is a long-term investment—not a quick fix to whatever career problems you’re experiencing.

In other words, if you’re looking to replace your current income quickly, buying a (startup) franchise business opportunity would be a lousy decision.

To summarize, deciding on whether franchise ownership would be a good choice for you involves several things.

If you do decide to become the owner of a franchise, you’ll join thousands of others who decided to take their shot at business ownership through franchising, and are very happy they did.

The Franchise King®, Joel Libava, is a top franchise expert, and the author of Become A Franchise Owner! For information on how he can help you become your own boss, visit his website.