If you are interested in running your own business-related company, then you might want to look into buying a franchise brokerage business. Connecting potential franchise buyers with the perfect franchise can be incredibly fulfilling, especially since you will have gone through the same process. In addition, you’ll be given the opportunity to help business owners franchise their company, which can also be very rewarding.
However, before you make the leap, there are five pitfalls that you should be sure to avoid if you do decide to invest in a franchise brokerage business:
1. Misunderstanding the Meaning of Being Your Own Boss
A lot of people who want to invest in a franchise want to do so because they like the idea of “being their own boss.” This is especially true with a franchise brokerage business, since you can technically work on your own without a staff. However, this doesn’t mean that you can create your own business plan and implement your own unique method of working.
For a franchise to work effectively, you’ll have to follow the basic business plan and structure set up by the franchisor. They know what it takes to keep a franchise afloat through their own trial and error. While you won’t have upper management looking down on you and judging your daily performance, you do have to follow the basic guidelines set forth by the franchisor.
2. Not Being Able to Work at Your Own Pace
One of the biggest advantages of investing in a franchise brokerage business is that you don’t need to hire a staff or rent out a commercial or retail space. This means that not only will your overhead be much lower than other franchise business opportunities, but you’ll also be able to work from home if you desire.
The problem for some people is that they’ve never had this opportunity before. In order to be able to work on your own time, you need to have both organization skills and self-discipline. It can be easy to become distracted while working from home, which could lead to you not getting the work done that you need to do to grow your franchise.
3. Not Having the Financing Required
Yes, the overhead is low, but that doesn’t mean that you should take risks with your financing. Here at Transworld Business Advisors, we outline the general cost of opening and running one of our franchises. Make sure that you are financially capable of investing in and operating a franchise—along with managing your normal financial obligations—before you attempt to obtain financing from a lender.
4. Not Knowing What a Franchise Brokerage Business Does
At Transworld Business Advisors, we give all of our owners thorough training before their franchise officially starts. This means that although having some business expertise or experience will help, it’s not required. However, it’s a good idea to read up on what a franchise brokerage business actually does so that you have a clear understanding of what will be expected from you.
5. Not Having a Real Estate License if it’s Required
In some states, you can’t operate as a franchise broker if you don’t have a real estate license. Check to see if you need a real estate license before you begin making investment plans.
These are five common pitfalls to avoid when investing in a franchise brokerage business. If you’re interested in our franchise brokerage business opportunities, contact us at Transworld Business Advisors today.