Inside the Mind of a Young Franchise Owner

Young entrepreneurs are always on the look-out for lucrative business opportunities. A franchise can look like a great way to get started in business. However, history is against recent college graduates succeeding in franchising.

A few years ago, franchise companies were encouraging recent college grads to get into franchising. The hope was that parents would provide the necessary funding and the young person would get a good start in business. Unfortunately, for the most part it just didn't work out. Most of the young franchisees didn't have the necessary business experience and long-term thinking to stick with the plan until it turned a profit. It was also difficult for folks this age to really manage employees well. It proved too difficult to hire, train, manage, and fire employees. Kids abandoned the franchises and parents were left holding the bag.

So if you are just out of college and determined to own a franchise, be aware that you'll need to work harder than most to impress a franchise company.

Experience, experience, experience: Immerse yourself in the business world and prepare to run a franchise by working as a manager. Climb the ladder at a local fast food restaurant, for instance. Create work schedules for the crew, discipline employees who are constantly late, train employees to do their jobs. Get paid to learn how to manage by working in the field.

Focus your experience: Work in a franchise similar to the one you'd like to run. You'll know in less than a year whether this is the life for you. If you prove yourself, a good franchisee will likely refer you to the company, serve as a mentor, and give you a reference.

Create a business plan: A good business plan shows that you understand all the specifics and lets you anticipate future problems while showing how you'll deal with them. Include the market for your product or service, the supplies you'll need, calculations for how much start-up capital you'll need and where it will come from. The Internet has lots of resources to help you create a great business plan.

Family money: Recent college grads usually have to rely on their families for a significant portion of the franchise investment. Be sure that both you and your family understand the possibility of losing capital during the first year. Have contingency plans in place to cover any disasters.

Know thyself: Is owning a franchise what you want to do, or was it someone else's idea? Do you have the skills and knowledge you need to be successful in business, or do you just want to start off a step ahead of your peers? Running a franchise is hard work, with short term challenges and long term profits. Be sure your business decisions are based on sound business principles.

By addressing these issues, you'll be better prepared to "sell yourself" to a franchise company.