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.


The Next Step - To learn more about this author, visit Mike Callahan's Website.

Like this article? Share it with your friends

E-Mail | Print | More

Related Articles
12 Steps Toward Greater Career and Life Fulfillment
	Clients are always asking us the “secrets” to life/career success and fulfillment. You’ve heard of David Letterman’s Top Ten – here is Cheryl’s Top Twelve steps toward greater fulfillment in your career and your li...
The 7 steps to avoid the sales nightmare of no income
	Everything you read is from people telling you how easy it is to earn big money in sales, how they made it big time. The truth is that 80% of sales people are on the treadmill, hanging in, on there month on month, s...
The Essence of Sales Effectiveness
	Your salespeople want a better, easier, simpler way to succeed. Yet as much as they want it, they very much want to hold on to what they know, the routine, approach, beliefs, strategies and tactics they've always u...
How to maximise your sales account opportunities
	Customer strategic account management business assessment 5 step tool to help you get the most out of your sales accounts. Start to build a map of your customers business highlighting all the key bits of informati...
How to star as an impromptu speaker - speaking off-the-cuff
	Situations might arise where you are called on to speak without any preparation. It's easy to panic. Yet, if you follow this simple plan, you'll have a great chance to really impress your audience..

---

Related Forum Posts
	How to obtain grant?
	Re: Your choice between...
	Step by step approach
	Need a book recommendation for writing better
	Re: Lemonade Stand Lessons
	New moderator
	Re: Which movie will make the most money this summer?
	HR section

---

Related Businesses - Evan Elite Authors

The Evan Elite Authors program is currently in beta phase. For details please contact us.