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Characteristics of a Franchisee

Written by: Ken Hollowell

Article Overview: Every franchisor has a profile of who they are seeking as a franchisee. Here are some of the characteristics of a franchisee.

Characteristics of a Franchisee

Characteristics of a Franchisee

Guts:
Guts means you must have an entrepreneurial instinct, which is an overwhelming desire to have your own business. You must have the guts and dedication to be completely devoted to your goal. Incidentally, devotion to your goal is much more likely if you have a love for your intended business. Life is too short to start a business that doesn't give you satisfaction and joy. And, through good times and bad times, you will stick with something you love. As Solomon said, "There is nothing better for men (and women!) than they should be happy in their work-so let them enjoy it now."

Brains:
While appropriate educational credentials are important, entrepreneurial "brains" means more than scholastic achievements. To become a successful entrepreneur, you must have a working knowledge about the business you plan to start before you start it. Common sense combined with appropriate experience is the necessary brainpower. Prudence, follow through and attention to detail are very important.

Capital:
You will need seed money of your own plus sufficient cash to maintain a positive cash flow for at least the first year. In a future session you will learn how to forecast future cash requirements through cash flow control. Many businesses can be started on a very small scale with a small investment. Then, as the business grows and you gain experience, cash flow from your business can be used for growth. In some cases you don't need starting capital to hire other people because you might start by doing everything yourself. The "do it yourself" start is a good way to learn everything about your business and also makes you better qualified to delegate work to others later on. You can control your risk by placing a limit on how much you invest in your business.

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Article Tags: franchise consultant, ken hollowell, our business, profran consultants



Related Forum Posts
Protecting IP - Dear BigJim 22 Sure as long as it is in the Franchise agreement... ie wht you are offering as Francisor and what their obligations are as Franchisee It is all in the agreement........ take care Ian
Re: True Characteristics of an Entrepreneur - Hi all, well first off, let me explain, this is my first post as I have only recently joined this site and feel this site can be an extremely useful one, hence why i have joined. Secondly, reading this post, ideasuniversity had some great "textbook" assumptions or theory for being "True Characteristics of an Entrepreneur" however, in the discussion below/above, their is mention of online tests or quizzes to determine if you would make a good or bad entrepreneur. I would like to add my comments here on this, i believe in some cases, this test would provide a true answer, however, a test or quiz can only be as good as the person/persons who judge or create the answers therefore, if the creator of these is of different stature, personality or have different view points on the same particular question, this would not necessarily provide the "correct" answer, however, i have always been taught there are two meanings to everything and without being able ot explain your answers (which you can't in a multiple choice), then this would not always be accurate. with regards to litekepr's business plan, everyone in business recommends a business plan, obviously this helps with the goal and helps with your developments and prospectus in terms of keeping yourself on track, the business plan whilst it may have advised your lecturer that the business idea/concept would of failed, does not necessarily say it will. i am a true believer of trying, give it a go and go hard at it, give it all you have, thats my attitude with business, 2 different people can have the exact same concept of a business, 1 will fail and the other probably wont, because 1 will have the attitude and the drive the other wont, 2 different people will look at the same situation differently, even if they were taught the same concepts. I have seen, many many times, TAFE and Universities teach their students how to research and using sites such as google to find their answers, however, as an employer, I advise their students to ask their "teacher" some real life scenario questions, the teacher is unable to provide an answer or a correct answer, so my point being, what may not seem practical in the classroom or lecture, can be different in the real world given that with real life experiences, an idea or concept can go a lot further than it would in theory in a classroom. I hope my two cents are welcomed. Steven Hayes SEMRAY Pty Ltd


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