Pinoy Entrep

Youre in the market to buy a franchise, and youve discovered a concept that you like. Youve read the website, went over the marketing materials and examined the Franchise Disclosure Document. In addition, youve talked to the franchisor a number of times. While your spouse may not be completely on board, youve kept him or her in the loop. Its looking pretty good so far.

Advice that Helps If you are serious about becoming a franchise owner, the next step would be to seek advice from business professionals who possess practical experience in franchising, in the industry that you are looking at and better yet, in the franchise you are considering. The franchisees are a wonderful resource and in most franchise systems they are open and willing to help. An accountant that has experience in this industry and knows the norms regarding profit would be very helpful. A franchise consultant that has years of experience in franchising can provide you with a balanced point of view regarding the opportunity. Finally, a lawyer that specializes in franchising can be helpful in reviewing the structure of the relationship.

Advice that Disorients Far too often, potential franchisees get so excited about the idea of being a business owner that before they fully understand the risks and rewards, they start reciting their loosely formed dreams to anyone who will listen. They discuss their business idea with their drinking buddies and even with Great Aunt Edna. Now lets be honest, Great Aunt Edna loves you but shes been out of the working world for 25 years ” she does not have an email address and still enjoys watching reruns of Bonanza. There is very little she can do to help you as you seek out more franchise information. There is a lot, however, that she can do to disorient you. Be careful.

How about your buddy who works for the U. S. Postal Service? His lifetime has been spent avoiding risk, maximizing salary, founding his pension and surviving until retirement. Theres nothing fallacious with that, but is he competent to offer you much guidance? Probably not.

A lot of people have your best interests in mind. But well-intentioned advice from people who simply dont understand business ownership, the industry you are looking at or have practical franchise information can be incredibly disorienting.

Advice that Matters Spouses commonly balance each other in temperament. If you are a go-getter, theres a high probability that your spouse is more cautious. She will remind you that the paycheck is good, and will worry about what will happen if you fail. These are critical conversations to have. But you want to be prepared.

First, gather all the facts and be sure you have a clear idea of what it requires to be successful in the business. How long does it generally take to break even and what level of income would a successful business create. Learn everything you can and involve your spouse every step of the way. If you spouse has a concern, listen to the concern and get as much information on the topic as you can to share with your spouse. These decisions are normally made as a partnership. If you and your spouse decide not to move forward with a business opportunity that you love, wont you feel better knowing youve given him or her all the facts? At least then you know you gave it your best shot.

Here are some of the most common objections you are likely to hear, as well as some facts to combat those perceptions.

1. Dont most small businesses fail? Several long-term studies have established that, unlike independent start-ups, franchises have a solid success rate. Having a franchise (vs. starting an independent business) gives you a tremendous head start, including: A proven operating system that can predictably create success. National marketing programs Group buying power Training and on-going support Manuals, procedures, job descriptions, accounting help, and so much more.

2. Why dont you just change jobs? Any book you read on wealth creation will tell you that very few people get wealthy by working for other people. Wealth is normally created in three ways ” the Stock Market (less than 10% of millionaires created their wealth by investing in the stock market), Real Estate Investment ( 10 ” 20% of millionaires created their wealth by investing in real estate), and Business Ownership (70 ” 80 % of millionaires created their wealth by building businesses).

Getting another job will not move you to the next level. If you are looking to create wealth and a better future for you and your family, business ownership is the best path.

3. Perhaps you should think about it some more. You should not make a decision of this magnitude rushing but you do not want to postpone either. Do your homework, ask all the questions and take notes – then make a yes or no decision in a timely and businesslike fashion. One characteristic of successful business people is their ability to make good business decisions with incomplete information. If you find yourself paralyzed, be careful, business ownership may not be for you. Yes or no, the most important thing is your ability and willingness to make a decisive decision and move forward.

4. What if you fail? You need to move into business ownership with the knowledge that you may fail. Of course you may also lose your job. There are no guarantees with anything that we do in life. Nobody can guarantee success. All you can do is stack the deck in your favor.

If you know that most franchisees in your chosen system are happy with their success; that you have similar skill set to successful franchisees; that you are adequately capitalized; that you trust and can comply with the franchisors system; and that you are ready to work hard, you are on your way to being confident that you can succeed.

Before you start to share franchise information with your friends and family make certain you have the facts straight. Educate them. Help them join your team. And if they cant be on your team, maybe thats OK. Everyone likes to give advice, and naturally, everyone gives advice from their point of view – their reference base. As long as you know that, you can appreciate their concern, and not let it overly influence you.

You know you want to have your own business, and youve learned that franchises can constitute the safest and fastest route to success. You start investigating franchise opportunities and find yourself feeling like a kid in a candy store. There are so many franchises out there! Do you want to own a food franchise? Or maybe a franchise that helps seniors stay in their homes? Do you want to build things? Have a staff? Work from home?

Maybe you already have an idea of what type of franchise youd like. Or perhaps you have no clue. Either way, you are at a decisive juncture. Making good decisions now can save you a lot of time and heartache by ensuring you only investigate franchises that might be a good fit for you.

The Wrong Path

Lets look at the typical franchise candidate. Shes excited about the idea of franchise ownership. Suddenly, she has an increased awareness of small businesses in her town. Everywhere she goes, she realizes that people are working for themselves. She pictures herself in different businesses. She thinks about what she loves in life, and what kind of business that might lead her to. Hey, she likes clothes and shoes and is constantly organizing them! She really understands the importance of a great closet and believes that perhaps a franchise that builds beautiful closets systems would be fun! She even read an article that stated custom closets are hot! And there isnt a single closet company in town! She determines shell begin her search by considering closet franchises.

The Ambush

By beginning the process this way she has made a critical mistake. Just because she likes clothes, shoes and organizing does not mean that she will be an effective owner of a cabinet design, manufacturing and installation business. Just because there are no other businesses in the community offering this service, it does not mean that she is positioned for success. Her hobby/passion is for shoes, clothes and organizing. Does she actually have a passion for woodworking, managing a staff, managing a marketing program or selling? The purchasing and cash flow aspects of this business are decisive. Would she be good in this area? Pursuing your hobby and passion into business frequently results to a loss of the hobby and a challenging business.

Avoiding the Ambush

The franchise investigation beginning place is never external – what does the community want – and its rarely your hobby. Do not make the error of believing you need to follow your hobby/passion to be successful. As Rich Dad, Poor Dad says, Passion is more about what you are being (business owner), than it is about what you are doing (laundry).

The most effective way to focus on the type of franchises that are right for you is to focus on your skills and abilities, as well as what you desire from a business.

Skills and Abilities

Lets imagine our hypothetical franchise prospect has spent the last 20 years managing casual dine restaurants. Over the years she has acquired solid skills when it relates hiring, firing and managing high-turnover employees, creating happy customers in a retail setting, inventory management, scheduling, purchasing perishables and planning. In order to position herself for maximum success she must look for franchises that utilize those skills. To learn more about how to do this read Chapter 4 of The Educated Franchisee.

What You Desire from a Business

There are different things she may also wish. Maybe she wants to have weekends and evenings off for the first time in her life or perhaps she wants a low investment. If this is the case, she may need to leave the restaurant industry. Maybe she wants a business that will provide her with greater flexibility to spend time with family. Then she will need to consider businesses that have key employees she can trust to manage the business while she is away.

There are many things a person may want from a business. Before looking at franchise businesses, you need to identify both your skills and your desires. Then you want to collect the franchise information needed to guarantee you find the best business for you. Remember, most people are happiest when they are successful. Prioritize your skills and lifestyle desires to give yourself the maximum potential for success.