Purchasing a franchise may seem like the smart business options. If you are looking for a business for sale in Tampa, you have probably already looked into buying into a business. Before you contact one of our business brokers at Rockrose Realty in Florida, take a look at these five things you should consider before you buy a chartered business:
1. Is It Right for You?
Ready-made business systems like franchises do not take away from you needing to run the day-to-day side of things. If you are willing to work hard, make decisions, and can enforce rules by the book, then an established business is an excellent option for you. Other necessities that owning a sanctioned business entails is dealing with your landlord, ordering supplies, creating a function team of employees, and running promotions to get more customers. It also means having a “boss” and following the company’s strict guidelines.
2. Can You Afford a Franchise?
Most ready-made companies are sustainable through borrowing. Whether it is through the bank, Small Business Administration, investors, or even family members. Some franchisers will actually offer financing to their franchisers. But these still require a good credit score and down payment.
You will want to look closely at your agreement to make sure your salary is enough to pay off debts, any upfront costs to the company, yourself, while still earning a profit.
3. What Is Your Ideal Lifestyle?
If you are comfortable with staying within a certain location and working long hours, then you can sustain having a licensed business. However, mull over what your ideal lifestyle would be like. Does it include long hours, spending days doing cleanups, hiring and firing employees, and working weekends? Then a charter business should be right up your alley. However, if traveling and weekends with friends sounds more like your lifestyle, perhaps consider looking to service provider or seasonal chain business.
4. Is This A Solid Investment?
After deciding on a company to look into, you need to look at the business’ history. Failed establishments, bankruptcies, and lawsuits are key indicators that you should stay away from this business. It is likely to cause more problems than it is worth.
It is vital to also make sure this company’s products or services are still in high demand. Take a look at the market for a certain business for sale in Tampa. What do their profits look like, if any? Investing in a project company whose numbers are steadily declining are signs that your investment won’t be solid.
5. Do You Have Support to Succeed?
A ready-made company should have a good support system to help guide you through their expectations. You will want to make sure they have well-established documents and training. If the company you are looking into can only provide vague information, chances are you will be left to fend for yourself, without the means to run the business properly. Look at for these red flags when looking into your business endeavors.
Ready to purchase your own franchise? Contact Rockrose Realty to find a business for sale in Tampa to get you started!