Franchises are popping up everywhere around us and it seems like they are fairly easy to get started, especially when the company has a solid reputation. There are, however, some things you should know if you are looking at medical franchise opportunities to buy into. Here are three myths that need to be busted about buying into a medical franchise.
Myth #1: Buying a medical franchise would be a money-back-guarantee investment. Even though I’ve never had anything to do with the medical field, I want to buy into a medical franchise opportunities because that is what is making all the money right now.
Truth #1: Find a franchise that fits what you know, what you’re passionate about and what fits your reasons for buying. Starting a franchise is not an easy investment by a long shot. Depending on the franchise, it can be a great return on investment, but it will require time and hard work to make it successful. You’re not only going to pay the start up fees, real estate and cost of office supplies and equipment, you’ll need to invest the time into the business to get it going. If you want to find out more information about the franchise and when you’ll likely start seeing a return on your investment, talk to several current franchise owners about their experience. Find out:
- what type of experience they had before starting the franchise,
- what type of hours they kept in the first year,
- what their income was that first year,
- what their employee turnover was,
- what kind of mistakes they have made,
- and what kind of success they had in that first year.
This will give you a better picture of what they invested into the franchise then simply seeing a dollar figure without the details.
Myth #2: I don’t know anything about running a business, but I’m going to start a franchise, because the franchisor will teach me everything I need to know to be successful. They have education, training and support, so I don’t have to know anything coming into the business.
Truth #2: If this is you, put on the brakes. Franchises aren’t meant to be business schools. While each franchise is different in what they offer for training and support, many of them provide enough training to run the business the way they want it done, then allow you to do the rest. It is vital to know how to run a business if you are buying into a franchise.
The basics of hiring, human resources regulations, bookkeeping (and the list goes on) are the absolute minimum skills needed to run a business and make it successful. It is especially important to know about medical businesses if you are starting a medical franchise. They are different animals entirely, because you have to deal with a litany of regulations, payment systems and deal with insurance companies. Most franchises have a screening process for prospective franchisees to see if they’re a good fit for the business. However, you still need to ask yourself if the medical franchise opportunity will be a good fit for you.
Myth #3: I don’t have a job now, so it will allow me the time needed to get this franchise started because I believe in this medical franchise and the opportunities it offers our community; therefore, I’ll make it work.
Truth #3: Franchises are not a “make it work” moment. They are a great opportunity when you have the what it takes instead of not having a job; needing a job and being in love with the mission behind the business are not enough. Yes, you will need to be able to invest your time and money into the business, but you also need to understand what will make the business work, and that alone doesn’t come from being passionate. It comes from experience and knowing how to get the business off the ground and running in the best way possible so you see that return on your investment as soon as possible.
The Bottom Line: Don’t buy into a franchise unless you’ve done your due diligence in figuring out if the franchise is a good fit for your experience, know-how, abilities and investment of time and money. Talk to several franchises before making a decision. Understand what it will take to start the franchise, including the money and time you will spend starting it. Find out which one is the best fit, and if need be, get a job in the industry before buying into the medical franchise opportunities and learn everything you possibly can. If you’re very passionate about the franchise, learn what you need to before buying in.