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There are several interesting entrepreneurship questionnaires to the right that you can complete to learn about your orientation to starting your own business, including franchises.
Quiz for Small Business Success Find out how your responses to a quiz about starting and running a successful business compare to those of 100 California business owners. The Self-Employment Test Answer nine short questions learn more about your ability to run a business. Be careful not to scroll past the questions until you've answered all of them since the answer key is at the bottom of the page. Is Franchising For You? Very thorough questionnaire covering the reasons why you might want a franchise and your personal characteristics, experience and willingness to face the challenges. Also, a chart of advantages/disadvantages of franchise ownership versus your own independent business. Self Test to Determine if You are Compatible with Franchise Ownership If the questionnaire reveals your interest in franchise ownership, proceed to the Self Test - Best Type of Franchise.
One of the cheapest ways to start your own business is to operate out of your home, and many people prefer to work there anyway. Of course, some businesses couldn't operate out of a residence, such as retail stores. Yet, even in that case, you could set up a Web page where customers can buy products from your online "retail store." All you would need is a computer in your home with an Internet connection. You could arrange for the products you sell to be shipped directly from the supplier to the customer. And that's just one example of a home-based business.
Come up with your own idea for a home-based business. Describe the reasons why you think your idea is a good one. Address all of the following issues in your discussion:
What competition will you be facing? Competitors can be both direct and indirect. For example, McDonald's, Burger King and Wendy's are direct competitors, but indirect competitors can also take away business from these restaurants, including other types of fast food franchises (Subway, Taco Bell, etc.) and supermarkets that offer ready-to-eat meals. A video arcade also has indirect competitors since any other type of entertainment can lure away its customers, such as movies or amusement parks.
How unique is your product? Offering something new or unique can increase your chances of success. The only gas station in 50 miles is unique because of its location. A special recipe for fried chicken (the Colonel at KFC got started that way!) is unique because nothing else tastes like it. Perhaps you offer a unique service: There was a time not too long ago when personal fitness trainers, pet sitters, party planners and personal image consultants were not yet in vogue.
Are there enough customers for what you offer – and at a profitable price? You could have a unique business operation with no competitors and still not make money if too few customers want what you offer. Or, they want to buy it, but not at a high enough price to cover your costs.
Does the business match your interests and skills? This may be more important than any other consideration. If you have the talent and aptitudes for the work you choose, and you enjoy it enough to persist through the many challenges of starting a business from scratch, you are much more likely to succeed.
To help you in identifying the home-based business you want to start, use these resources:
40 Concepts for a Small Business This resource by the Small Business Administration covers the broader topic of small business start-ups. It's a great place to start for ideas and direction, such as Invent a New Product or Service.
50+ Great Start-Up Ideas Each home business idea is accompanied by a brief description, and some include links to related Web sites, and names of related professional associations or periodicals.
Hot Home Businesses Each business idea includes an extensive description, organized according to following sections: "What you'll do," "Skills you need," "Equipment you'll need," "Start-up costs" and "How much you can expect to make." Some descriptions also include "Associations," "Publications" and/or related "Web Sites."
Work From Home iVillage provides this general resource on home-based business which includes advice and perspective on working at home.
Publications Browse through the online small business, entrepreneurship and home business publications listed on our "Small Business" page.
Visit some of the franchise sites to the right that seem to interest you the most. After reviewing a minimum of three sites, select the one that appears to offer the most profitable franchising opportunity. Then, give the reasons for your choice.
Questions to consider in making your franchise selection:
1. How much competition is there? 2. What does it cost to start the franchise and what do you get for those costs? 3. How good is the franchisor's training and support services? 4. What kind of advertising is provided for franchisees? What promotional fees do you have to pay? 5. What's the reputation of the franchise? To what extent would you attract customers by virtue of that reputation? 6. How unique is the franchise opportunity? 7. Do you receive any exclusive arrangement, such as a protected territory in which no other franchisees may operate? 8. What kind of help do you receive in first setting up the franchise: selecting a site, financing, etc.? 9. Do you have to pay royalties or other fees the franchisor? If so, how much? 10. What are your requirements in terms of purchasing supplies from your franchisor? Are the prices for these supplies competitive with other suppliers? 11. What insurance coverage will you receive? Insurance categories: fire, inventory, burglary, workmen's compensation, accident
and health insurance, use and occupancy, general liability and automobile (where applicable).
Kwik Kopy Printing centers 7-eleven Convenience stores Color Your Carpet Carpet dyeing and color restoration service Perkin's Restaurants Family restaurants and bakeries Ziebart Rustproofing for vehicles, automobile accessories -- sunroofs, etc. Postnet Postal and Business Services: packaging and mailing, desktop publishing, etc. Jiffy Lube "Fast lube" for vehicles Midas Muffler, brake services, struts and suspension services Domino's Pizza Pizza delivery Long John Silver's Fast-food with an emphasis on seafood and chicken Molly Maid Home cleaning service Chem-Dry Carpet cleaning service Flamers Grill Restaurants specializing in charbroiling
Note: The Franchises section of the "Small Business" page provides additional information. Also, if it looks like franchising interests you, make sure you take the franchising self-tests near the top of this page.
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