Tweet

The Next Step

Written by: Mike Callahan

Article Overview: In the previous articles in this series, we discussed taking control of your destiny by considering franchise opportunities as that path. We then discussed how to tell if you are a good fit for the world of franchising. Now that we have you this far, we will discuss how to undertake the next step of finding the right opportunity for you.

The Next Step

Article 3 in the series, Downsize your Boss!

In previous articles we discussed some of the broad basics about franchise opportunities. We also discussed how to tell if franchising is right for you. Now, we presume that franchising is right for you and we are taking you to the next step in the franchise investigation process.

As we mentioned in the previous article, there are currently about 3,000 franchise companies representing many industries so where does one start the process of selection what does one look for? How does one go about getting phone calls or emails returned from franchisors? Well, these are good questions and they scratch the surface of just how complex the world of franchise opportunities can be.

The internet is a good reference, but again, where does one start? I mean after you check out McDonald’s, Burger King and Wendy’s then what? We can pretty well assure you that you do not know the name or industry of the vast majority of companies, so once again we are back to the start.

The Internet is a dual edged sword when it comes to information. You can ‘Google ™’ franchises and last time we checked that came up with 20,700,000 (that’s twenty MILLION!!!) web sites (in .18 seconds I might add!) Now, if you are not looking to make a decision in the next 40-50 years while you investigate these sites we wish you good luck and happy hunting. Most people have better things to do with their time, we expect you do as well.

So what do I need to know?

You may find it interesting to learn that each of those 3,000 franchises have different requirements for their potential franchisees. Some will allow passive ownership and most will not—how do you find that out? Some will allow the company be started from a home base but require an office space within a certain time frame. Most franchisors have a minimum net worth requirement; do you know what your net worth is? In addition to that, each franchise has a liquid cash requirement and the industry is not the determining factor. We think it is valid to point out just because one dry cleaning franchise requires a liquid capital investment of $125,000 it does not mean others will. Each business has individual requirements and knowing what to look for is where the assistance of your franchise consultant comes in handy.

Our recommendation here is that you utilize the services of an industry professional—a franchise consultant. An experienced consultant will spend time with you to determine the critical pieces to begin a search. They must know enough about you, your back ground, qualifications, goals and financial background to begin an effective search. This is a career and lifestyle change of huge significance, yet we are constantly amazed that clients wonder why we need information “just to look around for some franchises.” It would be similar to walking into the local Porsche dealership and asking them to ‘prep’ a Porsche 911 Turbo and bring it around so you can take it for a drive. In order for that to happen they want some information---in fact they want a LOT of information. Expect to give information if you are to get information.

Your consultant will need to know what your likes and dislikes are as they pertain to business opportunities. Where will the business be located? How soon do you want to get this business off the ground? What will keep you from proceeding if you find the right opportunity? Why? Who will run the business, you or a partner? How much time will you personally commit to the business? Are you looking at one location or would you like to own multiple sites? Where will your financing come from? How is your credit? Is your family in support of this since your life style is likely to change at least during the ramp up of the business? What type of franchise opportunity would you prefer—established business concepts or emerging opportunities? Service, retail, manufacturing? What is your work history experience? What are your hobbies that may offer an opportunity you have not even considered? How much money do you have to spend? What is your net worth? These are just some of the things that we need to know about you in order to provide the best information for you.

They will want to know if there are any industries that you are absolutely thrilled about, any you want to avoid at all costs and those that you have experience or a passion behind. Think of the question and answer session with your consultant as filling in the blanks for them. At the beginning of the conversation they have 3,000 pieces of a jigsaw puzzle dumped out in front of them, no picture as a reference and no idea of the subject matter. As they narrow down your requirements they are putting the puzzle in order. When handled correctly, they not only have a picture to use, but have reduced the puzzle pieces from 3,000 to maybe 40 or 50. No matter how you look at that, a puzzle that is 40-50 pieces is a far sight easier than a 3,000 piece puzzle.

Our point is this: in order to give someone the best direction, we need to know about you, there is no better way for you to get best possible assistance from your consultant.

I think I can do this on my own.

Remember that 20,700,000 web sites on Google ™? There ya go---have at it and best of luck, see ya in 50 years.

Seriously though, if you went to the tax preparer ready to give them all your tax information and they told you, “this is your lucky day—we are offering our experience and service for free today. Won’t cost you a thing, now let’s get started.” Would you say—“hey, I don’t know why I came here in the first place, I can do these on my own, I’m outta here,” is that what you would do? We continue to remind people; this industry is built on “no cost” to the client when the consultant does an effective job and finds the best opportunity for the client. OK, so maybe you could spend hours and hours and weeks researching opportunities and repeating the answers to the same questions over and over (if you can get a returned call or email)—but why? This is not a gimmick that will surprise you at the end. When you go to your franchisor’s business to pay your money and pledge your documents no clown will pop out of a cake and say—“Ha,ha,ha,ha,ha---you owe your consultant lots of money!”

We understand that people are naturally suspicious of anything offered at “no cost” because we have been told over and over again there must be a cost to me somewhere, but in this case there is not. It would be illegal for a franchisor to charge different fee structures for clients that utilize the services of a consultant and those that do not. The fees are set in stone; they are no different by even one penny, so why not utilize the services of a professional?

Your choice, you can spend the time lost in the wide world of the massive information over-load on the Internet or you can spend some quality time with a professional consultant and let them do the work for you. Your cost—time! And not near as much of that as it will be by striking out on your own.

So, where do I find one of those consultant people?

I like to tell people to shine that Bat Light into the night sky and a consultant will contact them within moments, but that didn’t work last time it was tried. Some guy in a bat suit showed up with some kid in a funny suit and a fast black car. They did not know zip about franchises. OK, I jest—or do I?

If you are on the Internet looking around for franchise information, try some of the giant information web sites that offer information about a variety of franchises. If you request information from one of these sites (please only do that once!) chances are very good that you will hear from a franchise consultant shortly. These sites are wonderful ‘beginning’ information sources and once you request additional information they pass your request to consultants so that you as a ‘shopper’ will get connected with someone that knows about tons of opportunities rather than one specific company.

If you want to avoid that scenario, the authors on this site (as well as others about franchises) will tell you in their bio if they are a franchise consultant. If you read an article you like, connect with that consultant through their web link which will be in their bio. If all else fails a check of your local phone book yellow pages may yield some results. Not all markets will have anything listed under ‘franchises’ in the phone book. Typically consultants are not restricted to specific territories and as such they may not advertise in local books since they are involved in the greater community of the Internet world. Recent estimates suggest there are approximately 1,000 franchise consultants in North America, which is not a heck of a lot when you consider all the geography that includes.

If you give it a good try, I think you will be able to easily connect with a consultant.


Here’s the Bottom Line

We would be liars if we told you that we (franchise consultants as a group) are able to help every client we meet, we cannot. Sometimes the clients do not have the skills they need for the franchise they have their heart set on. Sometimes the franchise company does not have the territory available where the client wants to locate. Sometimes the franchise company is only selling multiple locations in their area and that does not work for the client. Sometimes the client does not have the credit or the financial backing required for the concept. Sometimes the perfect franchise has made a decision they are not working with consultants—they are the one paying 100% of the cost so that is definitely their prerogative. Sometimes the client just disappears—“hello, hello---are you there?” Sometimes the timing does not work out for either or both parties.

The point is—much to our disappointment, we are not able to find the perfect match for every client. Those we help and those we did not or cannot, all received something of value along the way--education. Most franchise consultants take the approach as a true consultant. There is nothing to be gained by having preconceived ideas about what direction to take a client. Along the way, clients are typically given reading material that is relevant to the process. In addition they have most likely been supplied information about the industry or the specific franchisors that make a good fit based on the information they provided their consultant. If we could not finalize a franchise option for them, at least we educated them and they were not out any money. They will be better prepared and educated for their next exploration.

We hope we have provided enough background that the reader should be able to tell if their consultant is heading in a mutually agreeable direction. As the client, you should be comfortable with any service provider you are working with. Your comfort should not be a question and this is not limited to franchise consultants, but financial, mortgage, real estate, whatever. Understand they are all going to ask you questions and want to know more about you, but now you recognize that is necessary. Spend the time, answer the questions one time, fully and let them do what they do best—find the best franchise solution for you!

Please join us in our next article when we discuss the process of checking out opportunities recommended by your consultant. Stay tuned.

Related Articles
  12 Steps Toward Greater Career and Life Fulfillment
  The 7 steps to avoid the sales nightmare of no income
  How do I create a radical ‘Call to Action?’
  "Blue Print” for change - personalizing your brand
  The Essence of Sales Effectiveness

Article Tags: boss, burger king, edged sword, franchise companies, franchise opportunities, franchisees, franchises, franchisors, good luck, google, happy hunting, investigation process, last time, liquid cash, mcdonald, office space, phone calls, time frame, wendy, worth requirement



Related Forum Posts
Re: Your choice between... - I will take the $100,000 and double it on it becomes millions before I spend it. Though I am crazy about information, yet I would rather take the money and turn it into a million before I spend a dime out of it. I will do it in 4 steps. Step 1 turn $100,000 to $200,000 Step 2 turn $200,000 to $400,000 Step 3 turn $400,000 to $800,000 Step 4 turn $800,000 to $1600,000. After getting the goal of step 4, I will spend the $600,000 on myself then continue to double the millions again. I could then by the book for $1,000,000
Step by step approach - Here's what I would do; Step 1 - Observe Wal-Mart’s target customers, what does Wal-Mart offer them? How long do they stay? Discover what it is that they might want or need that Wal-Mart doesn't offer, and then write those ideas down. Some ideas to get you started are - A cafe or fast food venue, something for the kids to do while the parents shop, etc Step 2 - Take that list, and weigh up the pros and cons of each idea, and then select the best one for you. Don't worry about not using all the space. Step 3 - Start the best business for you, and then release the other ideas to the general market and sublet the rest of the space to those who could fill some of the niches you've come up with, plus any they can come up with. If money isn't a factor then developing the building to suit multiple small leases may be a better option, as it's a diversified income, which is potentially more stable than one big income stream.
Need a book recommendation for writing better - I'm always looking for ways to improve my writing skills, so I was just wondering if anyone could recommend a good copywriting or copyediting book? I was actually thinking of reading "The Copywriter's Handbook : A Step-by-Step Guide to Writing Copy That Sells" by Robert W Bly [u:w3cg00nn]OR[/u:w3cg00nn] "The Copyeditor's Handbook: A Guide for Book Publishing and Corporate Communications" by Amy Einsohn. Would anyone know if these books are any good? Thanks
Re: Video conference system for families living in different cou - 1) How much will someone pay for the service? 2.1) What costs are involved on the business end? 2.2) What percent on top of that do you think you deserve as profit? 3) How many people will sign up for the service? These three will give you a rough estimate of the value of your idea. use the equation below with respect to the questions above to figure out the value of your idea. ((1 - (2.1 + 2.2)) X 3) You have alread identified major problems for your idea -- you have competition that is free! Computers are easy to hook to televisions, and it is becoming easier at very fast rate. (For free stuff other than skype, look up NetMeeting if you have Windows XP.) The video conferencing systems do a poor job of creating the feel of a physical presence. Even high dollar systems with dedicated internet bandwidth and extremely nice tracking video cameras do a poor job, especially for long distance runs. I have the experienced the disappointing performance of some of these systems on our campus. Video can not recreate the connection felt when in the same room with another person. Step 1, Quickly and roughly calculate the cost of the system you propose. Step 2, Compare that with what you think someone will pay and the cost of your current compeition. Step 3, Go / No-Go.
Re: Advisory Boards - Step 3 & 4 - [quote="TheRainmaker":171m8ezz]Step 4) Compensate your advisory Board Depending on who you are asking and how involved you are asking them to be, compensation can range from providing food at meetings, to covering expenses, paying a stipend or offering stock options. Recognize that your board will find benefit for themselves in other ways too. Being involved will introduce them to new people, ideas, networks etc. As well, it provides a way for them to give back.[/quote:171m8ezz] Hi Jude, If you choose to offer stock options, would you know how much is appropriate? I heard once that it should range between 1-2%. Is that about right? And how many people are on your advisory board at the moment if you don't mind me asking? Moreover, do they know what one another receives as compensation?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Ten Steps to Go from Idea to E-book for Sale

Attracting Passionate Employees

Download a template or see a lawyer?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.