As a budding entrepreneur, you may be considering buying into a bar franchise. While the potential profits are certainly attractive, before you sign on the dotted line and hand over your hard-earned cash, you need to ask yourself a few very important questions. At The Bar Franchise Co., we’ve compiled the top 5 questions to ask yourself before investing in a bar franchise.
1. What do I want to get out of a bar franchise?
If you’re thinking of starting a bar franchise business, you probably have a few questions. The most important one is probably “what do I want to get out of this business?” This is an important question because it will help you determine how much money you should be investing in your business, and how much time you should be devoting to it. Here are the top five questions to ask that will help determine if your new business venture will be profitable.
Questions to Ask BEFORE Investing in a Franchise
1. What’s in it for me?
Fundamental to investing in a brand new bar franchise is deciding whether you want to get out of the business and make a few bucks every month, or if you plan to invest a substantial amount of time and effort into the business and build it into a successful brand. Success in a business like this takes time, dedication, and a certain mindset. Edition X of The Bar Franchise Guide recommends working five days a week, 365 days a year, and starting with the smallest franchise that you can reasonably manage. If you’re serious about creating a successful bar franchise, you’ll want to find the business model that will allow you to create the most income for the least amount of time. If you’re a weekend warrior who just wants to get his fix and flip on Saturdays, then an SFR business might not be a good option for you.
The other key is determining what the larger picture of your franchise’s operations will look like. Is the franchise family business model meant to make the franchisor the biggest brand in town, or are they looking for a quick buck with a small portfolio of locations? These distinctions matter a great deal, because an SFR business can probably sustain itself indefinitely; whereas a franchise requires large investments of capital and operational resources, which can be difficult to sustain when start up. Thus, it’s important to decide early on which marketing approach you will likely take, whether it’s the newspaper, radio, door hangers, and signs.
2. Am I willing to put in the time and energy to run my own business?
If you have a business idea, you have to be willing to put in the time and energy to make your business a reality. Running a business will take time, effort, and money. If you don’t have the time to dedicate to marketing your business, you’ll have a hard time growing your customer base. If you plan to grow your business into a multi-million or even a multi-billion dollar company, you need to work hard, make time, and invest seriously. Growing your business into an unstoppable enterprise will require much more than a bar coding machine and an unpleasant, sweaty, risky business environment. Due diligence is crucial, and you should consider all of the potentials that the future holds. Think of what you will be spending money on; how will you avoid unnecessary expenses? Will you be able to support multiple locations, employing staff to take on all of the tasks that you wish to have more of? Do you have sufficient reserves to keep your business going when black swans smash your brand? Ready, set, go! 1. What’s Your Brand Worth? Ask yourself: “What’s my business worth?” If you have an idea to create a barcode machine and create a bar code–any barcode!–what kind of profit can you possibly make?
Corporate, franchisees, and guest decision makers tend to be really interested in price points, bonus packs, and the implementation of barcode technology. It’s best to keep these kinds of offers as far away from the idea of your pay-per-gram product as possible. The bottom line is that your business’s true worth should be determined before you put a product in front of potential customers. You don’t believe in providing great customer service? Good luck marketing your revolutionary tech product! 2. What kind of returns do you expect to see? Whether you sell barcode products or not, make sure that you understand the return on investment (ROI) of your idea and that it aligns with your business’s mid- to long-term plans.
3. Am I willing to commit to the required training, education, and mentorship offered by my franchisor?
Conduct thorough research to ensure that you’re willing to commit. Talk to other franchisees to see if they’re satisfied and if you feel comfortable with them. Does the franchisor provide adequate training, education, and mentorship? Finally, keep in mind that major concerns about particular franchisors may not be immediately apparent. So, before embarking upon a new path, it’s best to do your due diligence!
Know exactly what you need to bring to the table to win over the hearts and minds of patrons and residents.
Must-have amenities and amenities that bar franchisees (and others) want in their new and refurbished space. Some of these must-haves are listed below and others are covered under additional categories below.
Takeaway
If you’re interest in owning a bar franchise then contact Fransmart today to learn more about the benefits of choosing the bar franchise. Also, it’s the goal to help you succeed, and work hard to give you every advantage possible.
