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Franchising Path

Connecting You to Your Future

Franchising Path

Matching Your Skills And Experience To Your Franchise Selection

How do you know which franchise is right for your investment? With so many franchise brands and industries to choose from, the options can be overwhelming.

Even though opening a franchise is primarily about making money, where would you rather spend your time if you had a choice? Making money for yourself or someone else?

Your skills and experience are important considerations when deciding on the best franchise for you.

  • Are you a doer? A hands-on person?
  • Do you prefer to delegate as a manager?
  • Do you prefer to work independently or as a team?
  • Are you ready to be a leader, telling others what to do and making all major decisions on a daily basis?

Consider retail or service if you enjoy working with people. Consider a B2B franchise if you want weekends and evenings for your family or yourself. Do you want to interact directly with customers, work in an office, or simply work on the business with the manager doing the day-to-day?

These questions have no correct answers. There are only your answers. Consider them from the standpoint of trade-offs. Some people are driven and carried through the selection process by a strong desire to be independent, to be their own boss.

In an uncertain economic environment, many entrepreneurs are finding that purchasing a franchise is a better option than starting their own business.

You should ask yourself if you can work long-term with your franchisor. Do their goals and values match yours? Signing a franchise contract involves collaboration with franchise management and staff, as well as adhering to their operating system and rules. Different franchises have their own cultures. Make sure you can work with the people you'll spend time with before investing.

If you want to discuss your skills, experience, and franchise options, please schedule a brief call here.

5 Things To Do And 5 Things Not To Do When Attending Discovery Day

Discovery Day is a critical step in the due diligence process, whether you're a seasoned franchisee or just starting out.

I've attended several Discovery Days (DD) and compiled this list of what to do and what not to do.

Do: Prepare Yourself
Do your research on the brand. First, attend all calls with the brand representative(s) and perform some online research on the company. Next, speak to franchisees. I think there is nothing more important than speaking to and asking questions to those already ahead of you. Then, attend the DD. this takes you inside to observe how the franchise works. You also should read and understand the Franchise Disclosure Document (FDD).

Do: Bring Your Business Partners Or Spouse
Anyone who will be working in the business should be aware of what they are signing up for. They can also serve as a sounding board for topics discussed during the Discovery Day presentation.

Do: Ask Questions
Before you attend, try to have most of your questions answered beforehand. You will undoubtedly have some questions as you conduct your research of the brand and review of the FDD, but try to have most answered before you travel.

Do: Bring Energy
Be energetic and participate in the discussion. Keep in mind that discovery day is a two-way interview. You should also make connections with the other attendees.

Do: Take Notes
The Franchisor will most likely offer to send you some of the Discovery Day presentations after it's finished, but take your own notes during the presentation, tour, and so on.

5 Things Not to Do

Don't Wear Flip-Flops To The Franchisor's Office
You're attending an interview. Even seasoned franchisees should show the executive team that they care by dressing professionally.

Don't Leave Your Phone On The Table
The buzz or ring of a cell phone is the worst possible distraction during a meeting.

Don't Be Shy
Don't leave until you've gotten all of the information you need to make an informed decision. Get to know the team that will be supporting you.

Don't Assume You're A Fit
A franchisor may refuse to make you a franchisee. They may make their decision based on the interview or on a combination of factors.

Don’t Attend Too Soon
This is one of the final stages of the franchise investigation process, so don’t go before you are 95% ready to say Yes (or No). Discuss with your franchise coach/consultant and brand representative when this timing may be right for you.

Following my Discovery Day tips will help you on your path to a successful future as a franchisee.

Find out more about how to prepare for Discovery Day by scheduling a brief call here.

Franchise vs. Start-up: Entrepreneurs Can Enjoy All the Benefits Without the Risk

Franchising is a popular option for entrepreneurs pursuing business ownership. However, franchising and start-up businesses are two distinct concepts that share many aspects while also having significant differences.

Many aspects of the start-up model are shared by franchising. For example, both involve businesses that sell goods or services, and the start-up owner or franchisee is in charge of the business's day-to-day operations, such as hiring and supervising employees, ordering inventory, marketing the business, and keeping financial records.

One significant difference between the franchise model and start-up businesses is that franchisors provide extensive training for all aspects of the business. As a result, you receive a ton of assistance and direction on managing the business on a daily basis rather than having to figure everything out on your own.

The level of support franchisees can expect from the parent company far exceeds that of a typical start-up business owner and includes supply agreements, national marketing campaigns, and administrative support. Because of the franchisor's support, the franchise model is much less risky than other types of businesses.

The franchise system was created to maximize profits for all parties involved, including franchisors looking to expand their brands and franchisees striving to operate successful businesses.

Consumers win because the franchise system has made it possible to market a wide range of products and services more reliably and affordably than start-up owners could have done alone.

For those looking to reduce their risks while still benefiting from a successful business, the benefits of franchising clearly outweigh the benefits of other business models.

If you want to explore your entrepreneurship options, please schedule a brief call here.

Top 6 Financial Questions to Ask Before Buying a Franchise

Finding out how much money you need to invest is an important step in the franchise research process. Here are my top six financial questions to ask when considering purchasing a franchise:

1. What kind of revenue can I expect from this franchise?
Many factors will influence the answer. A range of incomes may be found in the franchisor's FDD (Franchise Disclosure Document), which the franchisor will provide. This information, however, is not required, and the range may be too broad to be useful. Validating with existing franchisees is your best path to get more information on revenue generated by existing franchisees at the brand you are investigating.

2. How much money is needed to start this franchise?
It is critical to know your upfront costs for purchasing and operating the business until it turns a profit. Reading the estimated investment section of the FDD will provide you with general information about these costs.

3. How long will my new franchise take to break even?
During the start-up phase of your business, you may not make money. The important first step is to find out when you can break even. This is when the business is covering its own expenses. It’s important to go in with the mindset that you must first build your customer or candidateele, which can take some time for some businesses, then scale to grow the business’ profitability.

4. How much working capital will I require when my business launches?
Working capital is the money you will need to put into your new business after it opens until it begins to earn as much as you are spending. Some items to consider are the following:

  • Operating costs
  • Your lease
  • Cost of employees
  • Equipment and utility costs
  • Personal living expenses

5. What options do I have for financing my franchise?
There are numerous ways to finance the purchase of a business.

  • Bank loan
  • ]SBA (Small Business Association) loan
  • Borrow money from your retirement account
  • Loan from family and friends
  • Take on a business partner/silent investor partner

6. How financially strong is the franchisor?
When looking into franchise opportunities, this might not be the first question that pops into your head, but you should still ask it. The franchisees will be supported by a franchise company with solid financial standing.

One of the most important steps in your franchise research process is to get the answers to these financial questions. Then, if the answers satisfy you, you can be confident that you are making the right decision when purchasing a franchise.

If you have questions about what to consider for franchise investment, please schedule a brief call here.

Franchising Fears? Learn The ABCs of Fear Management

When considering business ownership, it's common to have competing voices in your head. "Go for it!" says one. "It's too risky," says the other, louder voice. Fear takes over and causes paralysis.

With any major life change, fear is normal. But do you want fear to make decisions for you? How do you make it work for you rather than against you?

Follow this ABC model to ensure you have the right mindset:

A: Acknowledge

Acknowledge that there can be a lot of emotion involved when thinking about starting a business. To manage all of those emotions, you must make strategic and tactical decisions.

  • Explore the ideal methods for running a business.
  • Determine why you decided to take this route in the first place.
  • Acknowledge the importance of staying on track to achieve your goals.

B: Base Knowledge

Fear can be reduced with knowledge. The information you gain will put you in a better position to succeed. Examine the business model by learning more by asking questions. Furthermore, it is critical to understand that you will not be able to get all of your questions answered; however, you will be able to get enough of your questions answered to make an informed decision.

C: Courage and Purpose

You will face many decisions as a business owner. Allowing fear to paralyze your decision-making process can lead to frustration and a loss of confidence. Therefore, it's crucial to master the technique of progression.

Making no decision is a decision not to move forward. Consequently, fear management is a skill that you must practice.

Develop the ability to move forward rather than freeze. The more decisions you make, the further you will progress. The more you try new things, the more confident you become. You will become more aware of your courage, capability, intelligence, and resourcefulness as your confidence grows.

Think about the bold choice you just made. How will you deal with that decision?

You have the option of allowing the challenge to paralyze you or of progressing and building your confidence and courage to achieve success.

If you would like to talk about the importance of fear management in franchising, please schedule a brief call here.

It’s a Myth That You Must Be An Expert In The Franchise’s Field To Be Successful

Many people believe that in order to buy a franchise, they must be an expert in the field. This is not true. One of the best aspects of franchising is that you can be successful without knowing anything about the industry. All you need is some managerial experience and business knowledge.

There are numerous franchise opportunities available, each with varying levels of training and support. The franchisor will train you on how to run your own business. So to own a successful franchise, you do not need to be an expert in the field.

So, how much experience do you need to start a successful franchise?

The most valuable experience you can bring is that which can be transferred from one industry to another, whether you're making donuts or repairing water heaters. Keep in mind that you’re not doing the physical work. You’re managing the people who are.

Managers must help everyone do their best by having a bird's eye view of the business. From human resources to customer service to sales and marketing, a good manager should be able to deal with various personalities, respond to crises, solve problems, and generally be at ease around people.

In other words, your ability to hire good people and communicate with customers is far more important than your ability to turn a wrench or repair a faulty hard drive.

However, experience alone will not get you far as a franchise owner. You must be driven and motivated. If you don't have a get-up-and-go attitude, no amount of experience will help you be successful.

If you would like to find your franchising path, please schedule a brief call here.