As a franchise consultant, I regularly assess whether people are suited to owning and running a franchise business. Our candidates go through a rigorous selection process as it is highly important that we bring the right people on board.
The selection process is comprised of several interview stages in which we look at previous experience, behavioral attributes,and financial position. In my experience, I have found 6 critical factors which help determine if someone has what it takes to be their own boss.If you are considering becoming your own boss, you may want to ask yourself the following questions:
1. Am I Good With People?
Excellent interpersonal skills are key to any successful business. This is simply because most business activities are centred around other people. Whether you are dealing with customers, staff or suppliers, the ability to listen and communicate effectively is the foundation for which relationships are built. Strong relationships that are built on trust will help create a synergy around your business, making it easier for you to achieve your goals.
2. Am I Naturally Motivated?
When you have your own business, there may be tasks that you don’t enjoy. If you don’t have the natural drive to continually overcome these tasks, the likelihood of success is far less. For example, marketing the business and networking with people may not be your thing and perhaps something that you dread but such activities are crucial for service based businesses. You may always outsource the less desirable jobs, however during the early stages you may not have the financial capacity to do so. It is critical that you have the drive to jump over these hurdles to reach the bigger goal. Of course, another thing that helps is making sure you choose a business where you love what you do. Loving what you do makes it far easier to maintain high levels of motivation.
3. Am I Good at Multi-Tasking?
Most businesses require the owner or operator to juggle a hundred things in a day. There are so many things to be mindful of such as profitability, customer service, remaining competitive, marketing, selling, financial reporting, management of staff and so on. This can be overwhelming and requires a great deal of time management to ensure all business activities run smoothly.
4. Am I Comfortable With Selling and Marketing the Business?
You could have the greatest product or service in the world, but… if nobody knows you exist, your business will fail. You need to be aware of who your target audience is, where they hang out and the best way to communicate with them. Whether this involves social media, search engine optimization, networking or local advertisements, you must engage in these activities to bring in leads for your business.
5. Do I Have the Ability to Remain Resilient?
Running a business, including a franchise can often be stressful. There may be times when sales dip, staff resign and much longer working hours are required. During these times, it is highly important to remain resilient. Resilience is the ability to bounce back and persevere, particularly during stressful periods. It’s about facing problems head on, finding solutions and moving forward. If you have this quality, you will be better equipped to steer the business in the right direction if it veers off course.
6. Am I in an O.K Financial Position?
In any business, there may be times where sales dip and consequently you have less money after paying the bills. While you don’t have to be wealthy to start a business, it is important that you don’t overleverage yourself. Having a massive debt against the business puts you in a position where it is difficult to withstand lower levels of sales. There are many fantastic businesses that have failed because the owner was overleveraged. It is very important when looking to buy or start a business, that you set some boundaries based on your financial capacity.
Owning your own business can be deeply rewarding, however it may not be for everyone. I hope the 6 critical factors discussed here provides some guidance in your pursuit of the perfect opportunity.