Contrary to the popular Rolling Stones song, time is not, in fact, always on our side. Deep down we realize this, but nobody understands it better than an entrepreneur. The key to business success is knowing when to make moves, as timing can be a critical component. This is especially true when buying a franchise.
Before deciding to take the plunge as a franchisee, it’s good to understand how timing can affect your purchase, your plans, and your long-term success. By keeping an eye on a few key things, you can avoid a lot of pitfalls, and get your franchise location up to speed much faster, and with fewer headaches and lost finances.
KNOWING WHEN TO BUY
Having the money to buy a franchise is not the sole determining factor when it comes to signing on the dotted line. In order to become a successful restaurant franchisee, you need to be ready in your mind. The process will be challenging, but that’s part of the thrill. Nevertheless, obstacles await, and you need to know that you’ll be able to tackle them without buckling under pressure.
Beyond that, there’s something to be said for “just knowing” that you’re ready to buy a franchise. There should be no doubts in your mind, even if you understand the challenges. You should approach the thought of buying a franchise with a sense of commitment and perseverance. Should things go wrong, you’ll handle them one way or the other. You should feel so committed to the idea that nothing – not even a few bumps in the road – will be enough to deter you.
YOUR FINANCIAL CHRONOLOGY
Time plays a factor when it comes to finances, as well. You may be in a prime spot to buy a franchise location, but have you considered the current market? Will you be in even better financial shape 6 months down the road from now? Do you have children going to college?
These are all legitimate questions to ask, and it’s important to do so, given the fact that it takes financial commitment to open and maintain a franchise location. Besides startup costs, there’s also monthly operational costs to consider, on top of a business loan you may need to take out, and compounded by your personal and family financial needs. Stretching yourself thin because you’re too excited to wait can be a recipe for trouble. Holding off 6 months to a year – or however long it takes – may be better practice.
PLAN FOR THE FUTURE
Running a franchise location is very rewarding and enjoyable, but the first year or two will be a difficult climb to the top. If you keep your standards high, make your customers happy, and continue to abide by the good advice of your franchisor, you should be in the clear. Nevertheless, there’s no guarantee that your franchise location will turn out better than your competitor across the street, or your compatriot in another part of town.
Of course, the opposite could happen, and your franchise location might take off in the stratosphere in record time. The point is, there’s no way to tell until both the money and the bills start rolling in. From there, you can begin to piece together a framework of how well you’re doing. Before you even cut ground on your franchise location, however, you need to have a backup plan. If your restaurant franchise is on a good track, but not moving quite as fast as you expected, you need to make sure you have a contingency plan to fall back on while you pull through.
BUYING A SECOND FRANCHISE
Perhaps you’re already a restaurant franchisee, and your ambition has caused you to consider opening up a new location. The same above rules still apply; only the context has changed. It’s always good to re-examine where you started out as a franchisee, before deciding to invest in a new location.
The good news is that you now have experience to back you up. You’ve already gone through the gauntlet once, and emerged victorious on the other side. Take what you’ve learned, and readjust your approach when it comes to factoring time into your plans. If you do, you might be able to get your second location up and running to full speed much faster than your initial investment.
CONCLUSION
All of business relies on the right timing when making decisions, and franchising is no different. Even if you misjudge your timing, all may not be lost. All that may be required is some slight adjustments to your business plans over the next few years. The key is to remain confident, while still remaining practical. Ask the hard questions, without doubting yourself. If you can strike that particular balance, you’ll find that being a restaurant franchisee is a lot easier than you imagined.
St. Louis Bar & Grill continues to expand and grow to new heights, especially now that we’ve broken into the U.S. market in the state of Florida. If you’re ready to become a franchisee, and you think your timing is right, we want to hear from you now, rather than tomorrow! Contact us today and learn how you can be a part of our ever-expanding family.
