Here's how you can navigate starting a franchise after a layoff without making common mistakes.

Just by taking a franchise name will not bring money. You have to equally put in money, effort, heart & soul to level up. If it is a FOFO model, then franchise brand would just give its reputed name ( by charging a licence fee), support, guidance and required expertise to smoothly run the operations. At front you have to manage the business like it's own, you will have to build relationship with your clients to get recurring business, brainstorm (along with the franchisor) to gain new customers and increase your market share. Remember you have been laid off, don't rush to buy a franchise, do your thorough research, financial analysis and then start.

Decide whether you want to be hands on, passive, or as we say, "pactive". Make sure and do your due diligence by validating with existing franchisees. Consider home based vs brick and mortar and expected profitability years one and two especially. Make sure you have reserves. Think about whether you want to be an owner operator, an area developer, or possibly a master franchisee. Interview the franchisor thoroughly as they will be doing the same to you. Franchises are awarded, not sold. You will be "married" to the franchisor for ten years or more. If you need financing check to see if the franchisor is on the SBA approved list. Make sure you have reserves while the business is getting going. Decide what your goals are.

We can all dream of a great new business, but to launch it we will need to have a financial plan. Outline your assets, liabilities and income streams. You will need this to figure out where to start looking cost wise. Later in the process you may need it for a lender application.

Starting a franchise is a significant commitment, and your preparation can make or break your success. Instead of just looking at glossy brochures and franchise expos, dive into the less glamorous details. Spend a day shadowing a franchisee to understand the daily grind and the operational challenges. Ask them about the unexpected hurdles they faced and what they wish they had known before starting. This hands-on approach will give you a realistic view of the business, helping you avoid common pitfalls and setting you up for a smoother journey.

Make sure you are matching yourself to a franchise based on how your skills, strengths, abilities and how you want to work match the top performers in the franchise as opposed to how you match the product. Liking ice cream is very different than running an ice cream shop! There are over 4,000 brands by some counts. You may want assistance form a professional that has a good working knowledge of the industry to find your perfect franchise.

Once you've chosen a franchise, develop a comprehensive business plan. This should outline your strategies for marketing, operations, staffing, and growth. A well-thought-out plan not only guides your business decisions but is also essential if you're seeking financing. It demonstrates your commitment and professionalism to potential lenders and keeps you focused on your objectives. Remember, a solid plan is your roadmap to success.

Once you have chosen a franchise you can start your plan, but once you join a franchise brand most franchisors will also help you put it together. you plan will be key to success, make sure it follows the proven model of the franchisor!

Most common funding options, in order of highest cost of funds to lowest: - SBA loans - Conventional business loans - Business or personal lines of credit - Home Equity Lines - Loans against a stock portfolio - Cash - 401K rollovers, Tax deferred and penalty free

For your first year in a franchise, master their model. After that, if you feel you have great ideas on how to change that you can now do so knowing how they already operate. Your input will be more likely to get traction. Also in that first year, call the corporate office weekly (or more). No franchisor has ever complained about how often franchisees call for assistance. on the contrary, they don't hear from franchisees enough. If you don't have something to call about, then talk to someone you have not met yet and ask what they do.