How to identify your "must have priorities" in a franchise!
How to identify your "must have priorities" in a franchise!
But just as franchising presents the opportunity to be successful in your own business, it's also a chance to get stung if you choose unwisely.
What follows is a list of questions that I have compiled to help you identify your “must have priorities” the answers to these questions that will help you eliminate most of the companies out there. Then, you can concentrate your efforts on the remaining companies that deserve your utmost consideration.
What is the Industry Trend?
Is the franchise in an industry that is doing well currently and is projected to do well in the future despite any economic slowdown or technological advances, or increased internet use, etc. Look at trade publications and identify the future outlook of the industry.
What is the Total Investment Required?
In general, don't expect a franchise that requires a five-figure initial investment to produce a six-figure income. As with most things in life, you get what you pay for. Look for a franchise that fits your financial situation and requirements. Identify the figure you are comfortable with investing and validate that actual total investment by speaking with existing franchisees. Remember to have enough money left to cover your living expenses during the startup prior to profitability.
How experienced is the Management Team?
Does the management team have executives with demonstrated past achievement and experience in operating the business, in the industry or for other franchise companies?
Are you comfortable with the hours and income potential?
How many hours do you need to work to reach the income level you are striving for? Are you willing to sacrifice your time to achieve your goals? Set your work schedule in your mind and look at business models that fit that potential and return the income you need or desire. If you do not want to work every weekend then make sure you are getting involved in a business that allows flexibility on weekends.
What is the Minimum Number of Employees?
How many employees are you willing or able manage, are you willing to manage minimum wage employees, managing dozens of minimum-wage employees who are constantly quitting or simply not showing up for work may not be something you want to handle. Others accept it as part of doing business.
Investigate whether the existing franchisees are opening additional units?
It doesn’t matter how many units they initially purchased what is important is if they living up to the development schedule, and if not why. Many franchisees have great intentions to build X number of units, but then reality sets in, find out what the realities are.
Watch out for the real estate Lease?
For most retail franchises, the triple net lease of the location is the biggest financial commitment, larger than the total franchise investment.
Are you comfortable with the Image & Lifestyle?
How does flipping burgers, scooping ice cream or cleaning restrooms fit the image of what you want to do for a living? Investing in a franchise will be the most important psychological and financial decision you ever make. Does the typical working day of the franchise you are considering fit your personal image and your desired lifestyle?
This list of “must have priorities” is a very good way for you to filter franchise opportunities and determine which ones warrant your consideration.
Investigating a franchise takes some time but I have seen over and over again that if you choose a franchise wisely, success is almost assured.
How to identify your must have priorities in a franchise - To learn more about this author, visit Jim Coen's Website.
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Franchising represents a viable approach to business ownership. For a price, the franchisor teaches its proven business model and methods to the franchisee who shoulders all operating and financial responsibilities of the outlet.
But just as franchising presents the opportunity to be successful in your own business, it's also a chance to get stung if you choose unwisely.
What follows is a list of questions that I have compiled to help you identify your “must have priorities” the answers to these questions that will help you eliminate most of the companies out there. Then, you can concentrate your efforts on the remaining companies that deserve your utmost consideration.
What is the Industry Trend?
Is the franchise in an industry that is doing well currently and is projected to do well in the future despite any economic slowdown or technological advances, or increased internet use, etc. Look at trade publications and identify the future outlook of the industry.
What is the Total Investment Required?
In general, don't expect a franchise that requires a five-figure initial investment to produce a six-figure income. As with most things in life, you get what you pay for. Look for a franchise that fits your financial situation and requirements. Identify the figure you are comfortable with investing and validate that actual total investment by speaking with existing franchisees. Remember to have enough money left to cover your living expenses during the startup prior to profitability.
How experienced is the Management Team?
Does the management team have executives with demonstrated past achievement and experience in operating the business, in the industry or for other franchise companies?
Are you comfortable with the hours and income potential?
How many hours do you need to work to reach the income level you are striving for? Are you willing to sacrifice your time to achieve your goals? Set your work schedule in your mind and look at business models that fit that potential and return the income you need or desire. If you do not want to work every weekend then make sure you are getting involved in a business that allows flexibility on weekends.
What is the Minimum Number of Employees?
How many employees are you willing or able manage, are you willing to manage minimum wage employees, managing dozens of minimum-wage employees who are constantly quitting or simply not showing up for work may not be something you want to handle. Others accept it as part of doing business.
Investigate whether the existing franchisees are opening additional units?
It doesn’t matter how many units they initially purchased what is important is if they living up to the development schedule, and if not why. Many franchisees have great intentions to build X number of units, but then reality sets in, find out what the realities are.
Watch out for the real estate Lease?
For most retail franchises, the triple net lease of the location is the biggest financial commitment, larger than the total franchise investment.
Are you comfortable with the Image & Lifestyle?
How does flipping burgers, scooping ice cream or cleaning restrooms fit the image of what you want to do for a living? Investing in a franchise will be the most important psychological and financial decision you ever make. Does the typical working day of the franchise you are considering fit your personal image and your desired lifestyle?
This list of “must have priorities” is a very good way for you to filter franchise opportunities and determine which ones warrant your consideration.
Investigating a franchise takes some time but I have seen over and over again that if you choose a franchise wisely, success is almost assured.
How to identify your must have priorities in a franchise - To learn more about this author, visit Jim Coen's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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