Is it worth it to leave your job and invest in a franchise business?

[manuelwesley]

I've been thinking of quitting my job and invest in a business of my own. I was thinking probably buy a franchise, an established franchise would be a good start. But my concern is what is the probability that this business will succeed? Would this be worth it?

[bjl584]

That's a pretty broad question.

Things to consider:

Can you work at your current job and manage a franchise until it is established?
Do you have substantial capital or access to capital to get off the ground?
Do you know how to run a business, be a manager, make payroll, pay taxes, etc.?
What type of business do you want to open?
What is the need/want of said business where you are located?
Will you buy or lease property?
Do you have a plan to market your business to the public?

[snafu]

That's a loaded question. Have you ever worked for a franchisee? Do you have knowledge or experience in the type of business you're considering buying? What criteria will you use to decide whether to go ahead with a franchise? Are you wanting to jump forward into new challenges or are you wanting to escape your current work? What do you dislike about your work and about being an employee?

Have you visited existing franchises to try their product and observe their operation? Have you talked to franchisees to ask if they would sign on if they had it to do over? What do they wish they had done or not done? What would they have done differently? What did they wish they had known?

Realistically, what are your chances of success? How much risk are you willing to assume?

[~bs]

it really depends on your level of experience, among many other factors.

I know of someone that graduated with a business degree. He opened his own cell phone shop with his & family's savings. Problem is, he's never managed a cell phone shop, nor any other type of shop, let alone worked in one before. His business folded in 3 months.

If you look to own a business, I personally would recommend keeping your day job, starting small, and expand into a business that way. Perhaps invest in a franchise with others? If you dump your day job, your income is 100% variable and dependent on how the business does. If you keep it at first, then at least you have the $50k or however much you make as a base. So it's a lot easier to ride out times of low profits or losses.