I read an article the other day that was sprinkled with Buffett-isms. No, not Jimmy Buffett-isms about beaches, Margaritaville and Parrotheads, but Warren Buffett.

It got me thinking, how would Warren Buffett find the right franchise? He believes that the time to get interested is when no one else is. You can’t buy what is popular and do well. Or so his advice goes.

“Opportunities abound in America.” Warren Buffett

There are lots of franchises to choose from, but you shouldn’t just throw the dice and pick one out of the blue. You can be certain that Buffett does his homework.

If we stay with that notion, then we might look for those emerging brands with strong leadership and good unit economics. 

Imagine yourself in his shoes. He’d probably conduct extensive research and analysis to find businesses that are currently undervalued or overlooked by other investors. 

He’d also look for trends in the market. It is a safe bet he’d also seek out the advice of industry experts and consultants to gain insights into the franchise industry and potential investment opportunities.

“You are lucky in life if you have the right heroes. I advise all of you, to the extent that can, to pick out a few good heroes.” Warren Buffett

After seeking advice from a respected franchise consultant (I just happen to know one!), his next step would be to conduct a thorough due diligence. 

He would evaluate the health and growth potential of the business. This may involve reviewing training and support, analyzing digital marketing and territory, and speaking with franchisees and other industry insiders to gain a better understanding of the franchise.

Candidates get to talk to franchise owners. That is one of the major advantages of exploring franchise opportunities. You get to talk to the franchisees to better understand the business and how they’ve approached it.

You don’t have to be a Warren Buffett to make good choices, as long as you do your homework.

If you’d like to explore those exciting emerging market opportunities as well as established brands, I can walk you through the process, at no charge. Guiding you to find the best fit possible is my job. Give me a call today at 925.642.9976.

Do you have a favorite Buffett-ism? (Jimmy or Warren will do, as both are billionaires!)