Many people start their first franchise with little more than some basic research and a lot of enthusiasm; however, this is a good way to end up spending more than you should on lots of things as you assemble the pieces of your business. You can save tens of thousands of dollars on starting your first franchise by doing some additional due diligence research and learning what people who have the same franchise you are entering into would do if they had the ability to do it all over again knowing what they do now. Here are some of the things that franchise owners most commonly say that they would do differently if they had the chance; follow these pieces of advice, in addition to spending time talking to other franchise owners before you get started, and you will be well prepared to save money while establishing your franchise location.

First, be sure to get the best possible terms on your lease. The lease is one of the biggest basic expenses of setting up a new business. Because your business is not going to be making money for a couple of months, try to get the first two or three months of the lease free. Press for the lowest basic lease cost, and remember that other costs such as the price of common area maintenance and the local taxes are also significant in determining the size of your budget. For a slight increase in the price of your lease you may also be able to save money by getting your landlord to provide you with a leasehold improvement allowance. This involves you putting up some of the money, and the landlord providing the rest, in order to improve the value of the property. Over time this will save you more money than it costs. Take as much time as you need to get the best lease terms that you can, as your costs are only going to go up from there and the lease is your first big move in establishing your new business.

Next, take advantage of competitive bidding for the construction and fixture costs of starting your business. Building costs can increase unexpectedly with the wrong contractors, and there always seem to be setbacks. Ask around about contractors before you hire them and make sure that they are up to the job and have a good reputation for getting things done on budget. The important thing is that you shop around to find a contractor with a competitive streak and good prices – this will save you thousands of dollars.

Finally, do not go overboard with buying things that you don’t need. Your franchisor has experience in helping people set up successful locations, but many new franchise owners are tempted to hire more people than they have to, or spend more money on marketing than they need to, etc. Assume that the strategy laid out by the franchisor is right unless proven otherwise (i.e. you try it and it doesn’t work), or you’ll be spending lots of unnecessary money.

Follow these tips and do your research to save money as you start your new franchise!