04 Apr Why Trusting Your Instincts Is NOT Enough When Buying a Franchise
There’s that old saying where you should trust your instincts or intuition or gut feel for an opportunity and the risk involved. We are about to tell you why trusting your instincts is NOT enough.
When looking into a franchise opportunity, emotional response is very strong and geared towards certain opportunities. While this isn’t necessarily a bad thing, on the contrary it’s a good sign, it’s critical you do your homework. If it feels like a great fit, the numbers add up and your instinct is to move forward, ensure you have asked enough questions, spoken to enough people and considered all options.
It’s important when investing in a franchise to consider some worse case scenarios. What if I don’t hit the projected income? What if I miss targets and don’t achieve minimum performance? How do I get out of the business if after awhile it’s not for me or my circumstances change?
The best Franchisors and businesses will always ensure you have enough time to consider the purchase; after all they need you to succeed for them to succeed.
Understand that human emotions can be highly geared towards particular responses in favour of what people believe to be set outcomes of certain actions. However, in business, rarely does all go to plan to sensible planning, careful due diligence and risk analysis should be carried out ALWAYS.
The best Franchisors and businesses will always ensure you have enough time to consider the purchase; after all they need you to succeed for them to succeed. That’s how franchising works in it’s basic form. Don’t be naïve when choosing a franchise simply because it feels right. Do as much research as possible so you can ensure what feels right IS right and that the opportunity is indeed the correct one for you.