| I am always shocked by how many potential | | | | deadline and amonetary deadline, for instance $2m |
| Franchisees go andstart the discussions with | | | | clear profit in 10 years. |
| Franchisors and start to carry out duediligence | | | | The reason you need to do this is because if |
| without first having set some goals for their new | | | | you're best buyfranchise opportunity will only |
| business. | | | | generate $60,000 of profit a year andyou living |
| Imagine going and looking at new cars to buy, | | | | expenses are $40,000 then you are not going to |
| test driving them,discussing the finance options | | | | hit yourgoals and you need to keep looking and |
| before you even decided your basicneeds for a | | | | find something moresubstantial with a more |
| car. For instance how many seats do you need, | | | | substantial profit return. |
| whatkind of driving will you be doing long distance | | | | Now you need to have an idea of how much you |
| or short commuting. | | | | want to spend andtherefore which will be your |
| So before you start to look at which will be the | | | | best buy franchise, so start looking atyour assets |
| best buy franchise,you really need to set out | | | | these will include your house (if you own it) and |
| some high level goals for your newbusiness | | | | howmuch it is worth over and above what you |
| venture. | | | | paid for it, cars, do youown it/them? How much |
| Do a home budget (this is worth doing even you | | | | finance is left on it? Also include any otherthings |
| are not looking atstarting a business). What are | | | | of significant value such as Jet bikes, boats, |
| your monthly fixed out goings, fixedare thing like | | | | motorbikes,antiques, paintings, you get the idea. |
| mortgage, insurance etc. Then list out your | | | | How much do you have insavings, insurance |
| variableoutgoings such as food, entertainment and | | | | policies, stocks etc. |
| so on. You should nowhave an idea of exactly | | | | After you have completed this you will then have |
| how much profit you need to make eachmonth | | | | an idea of yournet worth, this will be very useful |
| to carry on living as you are. | | | | for you but it will also show anypotential |
| Try and decide what is going to be your exit | | | | franchisor that you have been doing your |
| strategy, I know itsounds strange but unless you | | | | homework. |
| intend to work until you die you willneed to decide | | | | So now you now how much you can raise in |
| an end point for your business. | | | | startup capital, youknow how much you need to |
| How long do you want to run your business for? | | | | clear a month, you know what you endpoint will |
| Until you retire? Oryou can set your end point in | | | | be; so you are now ready to start the initial |
| terms of money i.e. cash in the banklets a $1m | | | | informationgathering stage of your new best buy |
| clear profit, its up to you but you get the idea. | | | | franchise business! |
| It would be perfect if you can envisage a time | | | | Good luck! |