Opening a franchise with loved ones can be an exceptionally fruitful venture if you go about it correctly. Just as if you were opening a franchise with any other business partner, there are certain things you should make sure of, and certain things you should avoid. Here are some tips for going into business with loved ones.
Ensure They Are Financially Sound
Some of your loved ones might want to get involved with your business even though they really don’t have the money to invest. Any business venture is risky, and your loved ones should only invest what they are able to lose without egregious financial loss. One of the terms of the arrangement should be that everyone has to prove on paper that they have enough financial resources to invest in the business without risking their home or other stability.
Determine Strengths and Utilize Them
One of the best benefits of going into business with loved ones is having a pool of diverse talent from which to source. As individuals, your loved ones will have accumulated years of knowledge and experience, which can prove useful to the goals of your franchise.
For example, many respected businesspeople claim that veterans can make exceptionally good franchisees. Veterans are typically well traveled and accustomed to dealing with people from all walks of life and nations. If you have an older loved one in your family who is interested in joining your franchise opportunity, and they are a veteran, it’s worth considering having them join in the project.
One of the ways that you can determine what strengths you have available in your loved ones is to ask them to write down a list of things that they feel they are good at. Included in that list should be any direct experience they may have in specific fields or industries. For instance, someone who spent their working years in an accountant’s office would be suitable for handling the bookkeeping in your franchise operation.
Make the Arrangement Legal
One of the worst mistakes you can make when opening a franchise with loved ones is to fail to make the arrangement legal. The proper way to go about it is to consult with a lawyer who can help you draw up papers that will legalize everyone’s position in the business proposition. In this way, if any arguments or discrepancies occur, each of you can rely on the legal documentation to clarify the rights and responsibilities of each of your loved ones with regard to the business ownership and management.
Making the arrangement legal also allows for any of the loved ones to easily exit from the business arrangement, should their personal goals or situation change in the future. A legal document of this kind is highly affordable, and most contract lawyers will be able to help you with it.
Making the Decision to Franchise
Opening a franchise is an exciting opportunity, and it is natural that you would want to share it with your loved ones. But it’s also essential that you take the time to go about it in the smartest fashion. As stated above, you should always make sure that each of the participants is financially stable enough to enter into the business arrangement, ensure that you have a good grasp of everyone’s strengths and experience, and make sure that the business arrangement is set up in a legal fashion.
When you take the time to approach your new business enterprise in this way, you and your loved ones will have the best possible chances of having the franchise business be rewarding for everyone.
Interested in learning more about going into business with a loved one? Contact us today and find out how we can help make it possible!