Opportunity knocks - investing in a franchise or a business opportunity - includes related articles on business financing, multilevel marketing and the definition of a business opportunity

Entrepreneur, Fall, 1996 by Andrew A. Caffey

Investor Tip: When evaluating a franchise, professional advice is the wrong place to pinch pennies. A few hundred dollars is a small price to pay to get help with the selection and organization of your business. Find an experienced lawyer by asking other businesspeople you know for the names of lawyers they have worked with. Also ask for referrals from franchisees you meet during your investigation.

Show Time

Franchise and business opportunity trade shows present a sterling opportunity to explore what business investment packages might have to offer you. Attending one of these shows can be exciting . . . and overwhelming. Prepare carefully for the show, and you will get a lot more out of the experience.

Before the show:

* Give detailed thought as to what you are after in a franchise or business opportunity investment: Part time or full time? What type of business do you think you would enjoy? Consider your hobbies and passions in life. * Figure out your financial resources: What is liquid, what can you borrow from family and friends, and how much do you need to live on while starting a new business? What are your financial goals, and what do you need to meet them? * Get serious: Dress conservatively, carry a briefcase, leave the kids at home, and take business cards if you have them. Don't go just to eat the free cookies; show the representatives you meet that you are a serious prospect, serious about considering their business program.

At the show:

* Take a moment when you arrive, to study the floor plan of exhibitor, listed. Circle the businesses you recognize or that look interesting to you. Make sure you stop by these booths during your visit. * Don't waste time: Pass on the sellers who are out of your price range or do not meet your personal goals. (You know these going in, remember?) * Have a short list of questions ready to fire: - What is the total investment? - Tell me about a franchisee's typical day. - What arrangements are made for product supply? - Is financing available from the franchisor?

Indicate your level of interest an request a copy of the company's Uniform franchise Offering Circular (UFOC). * Collect handout information for all programs that interest you: Also gather business cards. Sort all the materials when you get home.

After the show:

Organize materials into file folders. Do this for every program you want to take a closer look at. * Follow up: The best way to show them you're serious is to call the representatives you met. * Insist on a copy of the UFOC as soon as possible: Take it to a competent business advisor, such as an attorney or an accountant you trust

What's Hot

Everyone wants to get in on the latest trend. What are some of the hot concepts driving franchising today? * Alternative locations: Also referred to as "intercept marketing," this concept involves locating retail businesses - often in miniature versions - wherever you find foot traffic, such as in airports, supermarkets, mall kiosks or convenience stores.

This trend has created new opportunities for franchise investors. Not only have multiple new locations become available, but franchisors have creatively responded to the restrictions of the smaller locations. Smaller locations also mean smaller financial investments for franchisees, putting programs within the reach of more investors than ever before.