Six “Must Haves” for Buying a Franchise
Six “Must Haves” for Buying a Franchise
But generally, in the long run a franchise can be much less costly to start and grow than a non-franchised business due to operating efficiencies, defined processes, and the advertising clout that the franchise name carries. Furthermore, many studies have shown that the success rate of a new franchise five years down the road will far exceed that of any new non-franchised business.
So even though franchises are a great way to start a new business, there is still that level of uncertainty that hovers over any new business venture. Is it really worth taking the risk?
Yes – if you have the following six characteristics:
1) Time. If you thought you were working a lot of hours at your regular 40 hour per week job, be prepared to commit a tremendous amount of time to your new venture.
2) Energy. Not only will you have to commit the time necessary, your energy level will need to be at peak level all day. You will be busy, and you will need to set an example for others. Can you do it?
3) Resources. You will need to surround yourself with good quality people. Management, staff, accountants, attorneys, vendors, suppliers, human resources, etc.
4) Skills. Do you really know what you are doing? Is your new franchise relative to your prior work experience? Do you know the industry inside and out?
5) Capital. Do you have the necessary capital required by the franchisor to pay the franchise fee, purchase assets, and provide sufficient working capital?
6) Desire. Is this really what you want to do? This is a financial but more importantly a life changing decision. It is not a decision where you can easily change your mind once you get started. Most likely it is a decision that will affect your life 10, 15, or 20 years down the road. Talk to others around you; your spouse, your kids, your friends. Make sure everyone is on board. Do you have the passion?
If you want to buy a franchise, consider the six points above. If you can pass the test, then you will likely succeed. Good luck!
Six Must Haves for Buying a Franchise - To learn more about this author, visit Tom Parsley's Website.
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We all know that buying a franchise is a great way to start a new business. Yes it’s true that the initial cost of a franchise is generally more than any non-franchised new business. It makes sense that a franchisor would need to be rewarded (both initially and on an ongoing basis) for their training, assistance, consultation, and guidance. And, remember, the franchisor is allowing you to use their proven business model for your own personal gain.
But generally, in the long run a franchise can be much less costly to start and grow than a non-franchised business due to operating efficiencies, defined processes, and the advertising clout that the franchise name carries. Furthermore, many studies have shown that the success rate of a new franchise five years down the road will far exceed that of any new non-franchised business.
So even though franchises are a great way to start a new business, there is still that level of uncertainty that hovers over any new business venture. Is it really worth taking the risk?
Yes – if you have the following six characteristics:
1) Time. If you thought you were working a lot of hours at your regular 40 hour per week job, be prepared to commit a tremendous amount of time to your new venture.
2) Energy. Not only will you have to commit the time necessary, your energy level will need to be at peak level all day. You will be busy, and you will need to set an example for others. Can you do it?
3) Resources. You will need to surround yourself with good quality people. Management, staff, accountants, attorneys, vendors, suppliers, human resources, etc.
4) Skills. Do you really know what you are doing? Is your new franchise relative to your prior work experience? Do you know the industry inside and out?
5) Capital. Do you have the necessary capital required by the franchisor to pay the franchise fee, purchase assets, and provide sufficient working capital?
6) Desire. Is this really what you want to do? This is a financial but more importantly a life changing decision. It is not a decision where you can easily change your mind once you get started. Most likely it is a decision that will affect your life 10, 15, or 20 years down the road. Talk to others around you; your spouse, your kids, your friends. Make sure everyone is on board. Do you have the passion?
If you want to buy a franchise, consider the six points above. If you can pass the test, then you will likely succeed. Good luck!
Six Must Haves for Buying a Franchise - To learn more about this author, visit Tom Parsley'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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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva'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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