Texas franchises for sale – 5 reasons Texans love starting a small business or franchise opportunity

July 14, 2012 By

It’s no surprise that things are just bigger (and many would say better) in Texas!  It’s hard to argue with the state’s booming economy in contrast to the rest of the nation.  Did you know Texas is the 15th largest economy in the world?  In 2011 Forbes announced their ranking of best states for business and listed Texas number 1 in both “Economic Climate Rank” and “Growth Prospects Rank” and number 6 in overall score.

The strong Texas economy is just one reason why so many people open a franchise in Texas.  New business owners are opening franchises in record numbers because they realize it’s much easier than starting a business from scratch or purchasing an existing business and not knowing what surprises may lurk in the dark.

If you are thinking of owning a business in Texas, here are 5 BIG reasons to own a franchise.

  1. The Value of The Brand:  With a franchise you have the benefit of a growing brand.  The more locations that open, the stronger the franchise name should become.  This will increase market awareness and drive additional sales.  Also a growing brand should increase the value of Texas franchises for sale when it comes time to sell
  1. Proven Systems:  With a franchise there is no need to reinvent the wheel.  When starting a small business the last thing you want to spend time on is figuring out how the business should be run and trying to implement the technology and processes required.  With a franchise, systems such as sales, marketing, operations, administration, technology and many more methods have already been figured out and proved over and over to be successful by the franchise company.
  1. Leadership and Experience: A great franchise will be run by an executive team with a proven track record of success.  They will know the industry, the competition, will be on top of evolving trends and have the time for strategy and planning.  An independent business owner will be hard pressed to perform all these functions if at all and if they don’t, they run the risk of being blindsided.
  1. Training and Support:  In a franchise business you are not in business by yourself.  A franchise company will keep you up to date by training you to consistently be successful.  They also will provide back up support for you and your employees so you can keep your eye on the ball and continue to grow the business.
  1. Exit Valuation: Franchises can command a higher price when the time comes to sell the business.  A franchise for sale can have a higher sales multiple based upon the strength of the brand and supporting systems that have been proven again and again.  In essence, all of the benefits described above should have a very positive impact on the sales valuation of the business.  As an owner, it is exciting to know that every time another franchise like yours opens there is a strong probability the value of your franchise just increased!

Take Texas size step toward becoming a business owner.

Many people come to realize the benefits of owning a franchise opportunity but don’t know where or how to begin.  They may go online and quickly get overwhelmed with the many choices and not being able to tell one from another.  They can read about different franchises online but it’s a high level overview, so in frustration many just give up.  Don’t let uncertainty stop you from realizing your dream of owning a business.  With the help of a highly qualified franchise consultant you will be able to determine which of the many franchises are right for you and how to go through the due diligence process.

For more information on the benefits of franchise ownership and how we can help your search Contact us. There is no cost or obligation for our service.

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Have You Been Thinking of Opening Your Own Business? Here Are 7 Reasons to Open a Franchise Business

July 14, 2012 By

If you have lost your job or afraid you might, join the many who have decided to open their own business.  People from all walks of life are finding an exciting new life as a business owner where they can control their own destiny and create real wealth over time.

Many specifically choose a franchise because of the proven systems and successful track record.  A key component of a franchise is that the business model can be repeated over and over again by people who have vastly different backgrounds.

If you are tired of working for someone else, here are 7 great reasons to own a franchise.

  1. You Are The Boss:  You are in control of your future.  Your focus is on growing your Franchise Business and making more sales.  No more wondering if you will even have a job.  You feel in charge of your destiny
  2. Build Wealth:  In a corporate job you make what someone else thinks you are worth.  With your own business you determine how much you make.  Instead of making a wage as a franchise owner you are building equity as the value of your franchise increases over time.
  3. Less Risk:  Opening Your Own Business can be much less risky than trying to hold down a corporate job that is subject to many forces beyond your control.  Good franchises have successful track records with training and support and systems that have been replicated and proven over and over.
  4. Comorodary:  In a franchise business you have the support of the franchise company (the franchisor) but also others who have invested in the same franchise.  You are surrounded by positive people who all want you to succeed.
  5. Our Country Needs You; The United States is built on small businesses and franchising is a very big component.  Do you know that a new franchise business is opening every 8 minutes?  As a franchise owner you be part of the economic foundation that has made our country great.
  6. It’s Fun and Rewarding:  Instead of working for a living, you are doing what you really like and helping others through the services you provide.  You are able to give back to your community which is extremely satisfying.
  7. Tax Benefits:  With your own business you may be able to write off certain expenses where in a corporate job employees must use after-tax dollars.

Taking the next step.

Many people come to realize the benefits of opening a franchise business but don’t know how to go about it.  They may go online and quickly get overwhelmed with the many choices.  They don’t know much if anything about all the franchise companies so just stop looking.  Don’t let uncertainty stop you from reaching your dream!  With the help of a highly qualified franchise consultant you will be able to determine which of the many franchises are right for you and how to go through the due diligence process.

For more information on the benefits of franchise ownership and how we can help your search Contact us. There is no cost or obligation for our service.

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Business Consultant Warning – 7 Red Flags indicating buying a business or new franchise is a mistake

July 14, 2012 By

The reality is, most people considering business ownership do not spend enough time evaluating themselves and what they want to get out of a business.  As a result, they never buy a business or buy the wrong one!

So why don’t prospective business owners take the time to think this through?  Because self-discovery can be a difficult process!  It can be hard for some people to be really honest with themselves.  Also, they may have never owned a business or one like they have in mind, so they just don’t know what qualifications are required.  Below are insights from an expert business consultant to help you determine if you have the personality necessary to be successful.

7 warning signs you are probably not cut out to own a business or franchise.

  1. You are a “know it all” and “you are always right”. Related to this, your management style is “my way or the highway”!
  2. You are not self-motivated.  You rely too heavily on others for direction and support.  Successful business owners are propelled by the thrill of growing their business and are impatient to make things happen.
  3. You are gullible or impulsive.  You have seen the ads or Infomercials with a lovely couple leaning on their Ferrari in front of their mansion and when they flashed their income checks you started thinking about the type of yacht you are going to buy!
  4. You think you will be successful because you are a “people person – you like people” or “you will do whatever it takes to be successful”.  These are great attributes, but not enough to motivate you if you are in the wrong business and one you end up hating.
  5. You don’t know what else to do.  You can’t find a job and owning a New Franchise seems like the answer.  You need to understand the end game; what do you envision your life to be like as a business owner and do you understand the steps to get there?
  6. You don’t have the total support from your spouse or partner.  To ignore the wishes of your loved ones is a crucial mistake.
  7. You can’t stand a loss of income either monetarily or psychologically.  Buying a Business invariably ends up costing more than anticipated whether to “Murphy’s Law” or the realization you need to spend more on personnel or advertising in order to grow the business.  Watch out if you are considering running your business on a shoestring if the thought of losing any money, even temporarily, scares you to death.

To make sure you have what it takes to own a business, take the next step.

For these reasons, it is very important that a qualified Business Consultant be used that really understands small business and franchising.  Think of this consultant as a trusted adviser who will help potential business owners look inward to determine what they want to get out of a business at many levels.  People use a real estate agent to purchase a home.  So why wouldn’t someone use an adviser to help guide them through what may be one of the most significant investment and life changing decisions they will ever make?

For more information on the benefits of small business and franchise ownership and determining if it’s right for you, Contact us.  There is no cost or obligation for our service.

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10 Insider Secrets – expert shares Business Advice on Franchise Opportunities and Opening a Business

July 14, 2012 By

 

 

Perhaps you have decided that owning a business is right for you.  You may have considered starting a business, but now franchising appears to be the right choice because of the proven systems and track record it provides. Wouldn’t it be great if you could get the inside scoop, the real deal about franchising from an expert BEFORE you decide to invest.

Well you can!  We have years of experience as franchise owners and are advisers to one of the country’s top university’s entrepreneurship program.  As franchise advisers we help people from all walks of life, including college students, learn about franchising and whether it would be right for them.  In this article we have summarized some of our most important recommendations that will help guide you through your due diligence in evaluating different franchise opportunities.

10 Insider Secrets you must know before investing in a franchise.

  1. Don’t go it alone –the key before opening a business is to first determine your needs and interests.  To really know yourself requires some self-discovery.  This process can be very difficult to go through alone and as a result many considering a franchise skip this vital step and jump to a decision based on emotion.  An experienced franchise adviser can help you explore franchises that would be a good fit for you personally, and ground you in reality.
  2. Find out who’s steering the mother ship – just as your own performance will be vital to your success, so will be the performance of the executive team running the franchise.  Dig into their background, experience and track record.  Ask franchise owners how well they are supported by the franchise company.
  3. Have enough money to live on – many investing in franchise opportunities are doing so on a shoe string.  If (when) there are unforeseen setbacks or the franchise takes longer to derive the expected income, the owner still needs to pay their personal expenses along with the franchise expenses.  You must insure you are not “betting the farm”.
  4. Crank the numbers – related to number 3 above. Ask the franchise company for a sample pro forma spreadsheet so you can enter your own performance assumptions.  Enter different growth and expense scenarios.  Some franchisors will be reluctant if they do not disclose an earnings claim in their Franchise Disclosure Document (FDD).  If that is the case, develop your own spreadsheet or use the services of your CPA or accountant.
  5. Be suspicious of a new franchise – a new franchise is a chance to get in on the ground floor (so says the franchise salesperson).  “The next McDonalds” they will say.  Maybe but unlikely.  It can be difficult to determine how successful a franchise might be without a long track record.  For newer franchises it is vital to use a franchise adviser.
  6. Push back on pushy franchise sales people – related to number 5 above.  You need to learn how to politely challenge pushy sales people whose objective is to sell you their franchise.  Make them prove what they say.  A good franchise sales person will educate you.  Better yet, use a franchise adviser who is focused on meeting your predetermined goals and objectives.
  7. Go face to face with existing franchise owners – yes, you should call many owners of the franchise you are considering.  Better still, you should go see them.  Something magical happens when you sit across the table from them and they show you around their business.  They open up!  You are much more likely to get the real story if you spend time with them developing a personal rapport.  Just don’t abuse their time; they are busy running their business.
  8. Understand local competition – it is very important, with the franchise company’s help, to determine specifically what you need to do to get a foothold in your local market.  You will need to know as much as you can about your competition.  Be a secret shopper; ask suppliers, customers, even store neighbors, if the franchise is retail.  Use an experienced commercial real estate agent, but do not settle for any location that doesn’t meet your specific requirements.  Another word for “settle” is “stuck”.
  9. Use a franchise attorney – unfortunately, to save some expense and time, not everyone uses an attorney (who must specialize in franchise law).  It is vital that you understand your obligations and commitments before signing any franchise agreement.  You also need to know what the financial consequences are if you do not succeed.  If at all possible, avoid a personal guarantee or at least limit the amount of the obligation.
  10. Know your exit strategy – you may not know exactly when you intend to sell your business, but you should think through some possible scenarios.   Some want to own for a few years and cash in, others may want to run the business into retirement, and then pass it on to their family, etc.  All this is fine, but regardless of your intent, you need to determine your possible Return on Investment (ROI) before you invest.  In many businesses, the real return comes at the time of selling the business, not necessarily the income earned along the way.  Develop a realistic growth plan with benchmarks so you know how you will attain the business valuation you seek when it comes time to sell.

To learn more Insider Secrets, take the next step.

As you can see from the 10 secrets above, it is very important that you seek Business Advice from an expert with deep franchising experience before you invest.

Owning a franchise can be a wonderful lifestyle and a great way to build wealth and equity.  To realize this potential requires that you start off with the right franchise, the best one for you.  If you do, you will be self-motivated.  You will be very excited knowing you already know where the path you are on will lead.

For more information on the benefits of small business and franchise ownership and determining if it’s right for you, Contact us. There is no cost or obligation for our service.

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Military to Civilian: Expert Advice to Open a Veteran Business and Obtain Small Business Financing

July 14, 2012 By

Did you know that military service is highly correlated with self-employment? According to a recent study by the Small Business Administration’s Office of Advocacy, veterans were found to be at least 45 percent more likely to become entrepreneurs than those with no active-duty military service. Officers are 55.6 percent more likely to be entrepreneurs than enlisted personnel.

So for many, business ownership can make a lot of sense, especially considering the unemployment rate for “Post – 9/11” Veterans was 11.5% in 2010, according to the Institute for Veterans and Military Families at Syracuse University.  Traditionally, most of the emphasis has been placed on helping veterans improve their job seeking skills, not helping them investigate self-employment.  However, this is changing through several major initiatives.  Many of these programs focus on franchise ownership because it can be much easier than a veteran trying to start their own business.

Why franchising makes a lot of sense for veterans and some promising small business financing programs you should be aware of.

  1. Veterans have what it takes – when transitioning from Military to Civilian life veterans bring with them many key characteristics often found in successful business owners, especially those owning franchises.  The reason being, the military, like franchising, is built on systems such as training, operations and communications. Other key traits include strong leadership skills and a thorough understanding of teams and how to motivate and manage them.
  2. Success Transition– many considering owning a franchise don’t know how to investigate the thousands out there.  They go online and are overwhelmed with all the choices.  They can’t evaluate which franchises they may be best suited for.

An expert franchise adviser can help them conduct some self-discovery to determine their real needs and interests, in order to know what type of franchise to look for, before they ever invest a dime.

  1. Operation Enduring Opportunity – a franchise industry-wide effort is underway to hire 75,000 veterans and 5,000 Wounded Warriors by the end of 2014, as well as to recruit and develop thousands of veterans to be franchise small business owners.  This initiative will provide education, advocacy, technical assistance and financing programs to achieve its goal.  Efforts are being spearheaded by the International Franchise Association (IFA), franchise companies, VetFran, the Small Business Administration (SBA), the Veterans Administration, the White House and other government agencies.

As an example, Guidant Financial is offering a 10% discount on services to all U.S. veterans, as well as sponsoring one veteran each month in 2012 to use Guidant’s services free of charge. The company has committed to helping fund 500 U.S. veterans to become franchise small business owners by 2014.

  1. SBA Express & Pilot Loans – streamlined and expedited small business financing programs are available to veterans. The Express program provides a response to an application within 36 hours, and often lower rates are available.  Patriot Express Loans offer easier access to capital and feature the SBA’s lowest interest rates on business loans, including purchasing a franchise.
  2. Franchise companies –Little Caesars has a “Veterans Program” which offers a $5,000 reduction of the franchising fee, financing benefits and a $5,000 credit on the equipment order for the first store.  Service-disabled veterans are eligible for additional benefits, including a waived franchising fee ($20,000) and additional financing options and benefits which total approximately $55,000.

To learn more about potential franchise ownership and how to make the transition, take the next step.

The unemployment rate for veterans, especially those under 25, is just unacceptable.  The government has many programs to help a veteran look for a job but there just aren’t enough.  Fortunately more resources are becoming available to help vets explore becoming a veteran business owner as a very viable option.

Owning a franchise can be a wonderful lifestyle and a great way to build wealth and equity.  Veterans possess many great qualities required to run a franchise, the key is to select the right one.

For more information on the veteran programs above and help exploring franchise ownership, Contact us. There is no cost or obligation for our service.

 

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Making a Career Change? Franchise Consultant shares steps to follow when looking for a Business For S

July 14, 2012 By

Perhaps you have been thinking about making a career change and becoming a business owner. For many, owning a franchise can be better choice.  A franchise company provides a blue print for new unit owners to follow that has been proven successful over and over.  But before you start thinking of possible franchises to own, the first thing you must do is focus on yourself.  Success starts with understanding your personal needs, business goals and financial requirements BEFORE zeroing in on specific franchises.

So why don’t prospective business owners take the time to think this through?  Because self-discovery can be a difficult process!  It can be hard for some people to be really honest with themselves.  Many just don’t know what qualifications are required.   Often people get so excited about getting into a franchise they lose total sight of a possible exit strategy down the road – and NO business should be started without this in mind!

For these reasons, it is very important that a qualified franchise adviser be consulted.  What is a franchise adviser?  The adviser is similar to a career coach, only they focus on helping people understand the world of franchising.  They help them sort through the many options available to determine which may be the best fit for them.  But all of this comes AFTER the adviser has helped their client look inward to determine what they want to get out of a business at many levels.

Here are 7 key steps a qualified franchise adviser will go through with their client:

  1. Initial interview – A franchise adviser will start off asking some basic questions and will share information to help you determine if business ownership would be a smart Career Change for you at this point in your life. A lot of people are intrigued with the idea of owning a business but need some help understanding what it would really be like.
  1. Self-evaluation – A franchise adviser will use a confidential questionnaire to help you think through what you would want to get out of a franchise before you ever invest in one.  For instance, will you have a partner and will they be passive or active?  Is your spouse supportive?  Would you be willing to work some nights and weekends for certain types of businesses?  Would you be better with customers coming to you in a retail store or could you succeed networking and going out to customers with a service based business.  Would you prefer selling to businesses (B2B) or to consumers (B2C)?
  1. Search Criteria – Once you have gone through self-evaluation, the next step is to use this information to develop the “Search Criteria”.  This will be used by the franchise adviser to conduct their search and ensures a greater likelihood of finding a franchise or Business for S that would be a very good fit.
  1. Potential franchise solutions – The franchise adviser will present the franchises that match up well with your Search Criteria.  A very experienced adviser will know a great deal about these companies and will be able to explain their executive team’s track record, their differential advantage, their support systems including training, marketing, sales, etc.
  1. Due diligence – Now that you know some franchise companies that could be a good fit, you need to confirm which one you prefer.  After interacting with existing owners of a specific franchise and becoming aware of what it will take to be successful with their model, you may determine this particular franchise isn’t for you.
  1. Discovery Day – Once you have zeroed in on a particular franchise that seems to fit you well, you will attend “Discovery Day” which is normally held at a franchise company’s home office.  You will meet their executives and support team and they will explain the process of coming on board and the support they provide, should you select them.  The franchise company will also be evaluating you to make sure you have what it takes to be successful.
  1. Refer specialists – As you go through the franchise selection process you may need certain specialists to assist such as a CPA, franchise attorney, financing sources, etc.  The franchise adviser may be able to refer professionals for you to consider in addition to your own.

To learn more about potential franchise ownership and how to make the transition, take the next step.

People use a real estate agent to purchase a home.  So why wouldn’t you use a Franchise Consultant to help guide you through one of the most significant investments of your life?  There are franchise opportunities that may be the perfect match for you, but without a franchise adviser how will you ever know?  People who use a franchise adviser are often pleasantly surprised with the types of franchises presented to them.  There is no charge to use a franchise adviser because they are compensated similar to an executive recruiter.  You also will not pay more to purchase a franchise if an adviser has helped you.

For more information on the Veteran programs above and help exploring franchise ownership, Contact us. There is no cost or obligation for our service.

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Wondering How to Work for Yourself? – 7 Trends Reveal the Best Franchise or Small Business Opportunity

July 14, 2012 By

You can go online and find all kinds of lists indicating the latest trends such as the “Best” or “Top” or “Hot”, etc. franchises, but it is questionable if these lists are really viable.  Often franchise companies are included because they paid to be there.  Wouldn’t you think at least some of the same franchise companies would appear on multiple lists, but this is seldom the case.

A better approach is to first take a look at franchise categories that are ripe for growth based on economic and social projections.  Then with the help of an expert franchise advisor you can drill down and identify specific franchise companies within these growth sectors that could be appropriate for you to investigate further.  The key is to identify specific franchise companies that not only have real growth potential, but also those that could be a good fit for you personally.  For instance, you may work better with the support organization of a particular franchise because they provide more hands-on assistance out in the field (at your location) than another franchise in the same category.

These 7 key trends reveal franchise categories with significant growth potential

  1. Green – All things “green”, meaning environmentally friendly, are in vogue.  Many franchise companies are implementing “green” products and services as a way of attaining a competitive, differential advantage.  There are, however, a few new franchises emerging that consider themselves “green” because they focus on ways of increasing energy efficiency through such products as solar panels or longer life batteries, etc.
  1. Food – According to a recent survey conducted by The National Restaurant Association, there is a major trend toward children’s nutrition, local sourcing of food (and identifying its origin), food trucks, and mobile/tablet applications.

Joy Dubost, Ph.D., R.D., director of Nutrition & Healthy Living for the National Restaurant Association, states: “Nutrition – especially when it comes to children – is becoming a major focus for the nation’s nearly one million restaurants. “  She adds, “Local farms and food producers have become an important source of ingredients for chefs and restaurants…”

  1. Senior Care – According to the U.S. Census Bureau, the number of people in the U.S. over 65 years of age will grow from 40 million to 47 million, an increase of 16.5%.  Many franchise companies provide products and especially services to this expanding group.  In-home medical and non-medical care and also physical rehabilitation are examples.  However, as this target segment grows so does the number of franchise companies servicing them.  Extra caution is necessary and requires thorough research to determine the Best Franchise for you.
  1. Education and Child Care – You may be surprised to know that there are nearly twice as many children under age 18 in the U.S. as there are seniors, according to the U.S. Census Bureau.  Most parents want the best for their children and as our schools are being forced to cut back, franchises specializing in education and tutoring are filling the gap.  Our highly competitive world mandates that we educate our children properly, but it also requires many families to have two wage earners, increasing the need for childcare services.
  1. Hispanic and Asian – According to the U.S. Census Bureau, by the year 2015, 1 in 5.6 people in the U.S. will be Hispanic and 1 in 20 will be Asian.  Many franchise companies are accommodating these fast growing segments while others are targeting them as their main customer group.  Examples are tax preparation and ethnic cuisine restaurants.  This Small Business Opportunity should not be overlooked!
  1. Business Consulting – The U.S. was built on small businesses and an entrepreneurial spirit, and is the backbone of our economic recovery.  These small businesses have a huge need for consultants that will help them with marketing, advertising, sales, operations, and financial services.  In particular, there is an ever increasing need for these small businesses to leverage their competitive position through the Internet, social marketing and mobile apps.
  1. Health and Wellness – In this age of self-awareness and empowerment and baby boomers wanting to insure their health and vitality, there will remain a strong need for anti-aging and wellness products and services.  In particular, customers are requiring one-on-one individualized services to meet their very specific needs.

To learn more about potential franchise ownership and explore the trends above, take the next step.

An expert franchise adviser is invaluable in helping you develop a plan of How to Work for Yourself.  You will be able to identify franchise growth categories and stay clear of fads.  A franchise adviser will also help you identify specific franchises to investigate which will meet your needs and interests.  The franchise adviser will guide you through due diligence and train you on how to cut through an aggressive franchise sales person’s hype.  You will discover that the “right” – “best” – “top” – “hot”, etc. franchise for you depends on your very own special requirements.  Becoming a franchise owner can be the start to a wonderful and profitable new life.  A franchise adviser will help you get there!

For more information on the franchise trends above and help exploring franchise ownership, Contact us. There is no cost or obligation for our service.

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7 key personality traits needed for Business Ownership, a Franchize or new Entrepreneurship Venture

July 14, 2012 By

Thinking of becoming a business owner, but wondering if you have what it takes?  Aside from all the mechanics involved in launching and operating a business, you must first ask yourself if you have the right type of personality to be successful.  Well, there is no one specific personality type where you either have it or you don’t, but there are some common traits found among successful business owners which are listed below.

Another factor to consider is franchising, which to some extent, can act as an equalizer and have the effect of “leveling the playing field”.  A franchise is a business model created so that it can be successfully duplicated over and over by people with many different types of backgrounds and personalities.

Franchises are built around “systems” such as sales, operations, training, etc. which the owner follows, eliminating the need to “recreate the wheel”.  However, a franchise owner still needs to have the traits below to be in business in the first place.  Assuming you have what it takes, you must figure out which specific franchise would suit you the best.  An expert franchise adviser can help you through this process.

Compare yourself to these 7 key personality traits commonly found in successful business owners.

1.)          A successful business owner is results oriented.  They are able to distinguish between being very busy vs. doing work that matters most.  They identify Key Result Areas – work that is most critical to the success of the business and they prioritize to make sure this work gets done.

2.)          Successful Business Ownership requires someone who is respected by employees, suppliers and certainly customers.  To attain this, it is vital that a business owner treat everyone with respect and insure excellent product and customer service standards are upheld.  The owner is a relationship builder and a leader.

3.)          A successful business owner is resilient.  The buck stops with the owner.  At the end of the day, it is up to them to make their business successful.  “Stuff” happens but regardless, the owner needs to be able to persevere.

4.)          A successful business owner understands the importance of premier sales and marketing and is able to perform themselves or hire accordingly.  Revenue and cash flow is king to survival and hopefully prosperity, and a business owner must be proactive to insure the sales process is continuously producing the desired results.

5.)          A successful business owner is a “big picture” thinker.  They don’t get “wrapped around the axle” by being so short-sighted that they are unable to achieve their mid and long term goals to grow their business.  The owner of an Entrepreneurship Venture needs to be very aware of their company’s strengths and weaknesses and know how to position themselves against the competition and think proactively.

6.)          A successful business owner can be a specialist or a generalist, but when it comes to evaluating financial performance they must be detailed (at least enough to understand their profit and loss statements).  This does not mean the owner personally needs to perform payroll, bookkeeping and accounting functions because in many cases it may be better to hire qualified personnel or outsource these functions.

7.)          A successful business needs to be capable of living a balanced life and not be consumed by their business.  They realize growing a successful business is a journey to be enjoyed.

To learn more about business ownership and to see if you have the right personality to succeed, take the next step.

Most people go online to search businesses or Franchize for sale.  They see many options and can quickly get very excited about the idea of controlling their own future as a business owner.  If they are not careful they can get caught up in the emotion and excitement of learning about these businesses and not conduct thorough due diligence.  Even worse, they don’t stop to analyze themselves to determine if they should be a business owner in the first place.

An experienced franchise adviser can be extremely valuable in helping you through a bit of self-discovery to help you determine if you are cut out to own a franchise.  They can go further in helping you identify the specific franchises that may fit your personality traits and strengths and weaknesses.  They also can keep you on track to make sure you do thorough due diligence.  Having this knowledge should enable you to enjoy a great new life as a franchise owner because you will know the business is the right fit for you, well before you ever begin!

For more information on the personality traits above and help exploring franchise ownership, Contact us.  There is no cost or obligation for our service.

Filed Under: Franchise Advice, Franchise Selection Tagged With: , , ,

Career Center Advice for Young Entrepreneurs Considering Businesses to Own or Franchises to Buy

July 14, 2012 By

If you are in your 20’s or 30’s, you still may be trying to figure out a viable career path as an employee working for someone else.  However, many young adults are considering business ownership as a very viable option, especially in our current economic environment where unemployment and underemployment is high.  Many have seen their parents work hard and are willing to do likewise, but prefer to build up wealth and equity in their own business and not be so vulnerable working for a corporation.

For young adults, franchising can make a lot of sense.  A franchise is designed so the business model can be replicated over and over by people of varying ages and backgrounds.  In some respects franchising lays out a road map to follow.  This takes a lot of risk out of owning a business at a younger age and provides the tools and systems necessary for success.

7 key things to consider about business ownership in your 20’s or 30’s, is it a good idea?  You bet, but keep the following in mind.

1.)          You are full of energy and ideas – It may be a surprise to learn that it isn’t necessary to be totally passionate about a business but you definitely need to like what you would be doing on a daily basis AND have the energy to do it!  As the saying goes, “success is often more perspiration than inspiration”.

2.)          You can afford to take intelligent and educated risks – In your 20’s or 30’s your personal expenses and external obligations outside of work may be less than later on in life when children are preparing to go off to college as an example.  Even if it takes you longer to attain your business goals you still have plenty of time for further growth or to even change direction all together.

3.)          Your age may help you relate to certain types of business customers – There are many franchises such as college prep tutoring or fast casual food restaurants that cater to a clientele not too far removed from those business owners in their 20’s or 30’s.  A fairly young franchise owner should be able to leverage their ability to relate to a comparable age demographic and establish repeat and loyal customers.

4.)          You may not have to unlearn old (unproductive or outdated) habits –Younger business owners are probably less likely to be set in their ways and very open to following the franchise systems laid out for them.  They may also be more inclined to share their learning and growth experiences with the franchise company helping them further refine (not redefine) the franchise model.

5.)          As a Young Entrepreneur you understand social media and know how to utilize it to your advantage – Older business owners can be confused by social media and marketing because they may not use it extensively on a daily basis like those in their 20’s.  Being able to engage and communicate with a target market of younger consumers is a great competitive advantage.

6.)          When considering Businesses to Own, funding can pose a challenge – Financing sources are available for those who have not yet established strong credit histories or a high net worth if you know where to look.  For instance, funding could come from friends or relatives or perhaps in the form of a “micro loan” if the business is in an economic development area.  Some franchise companies are also offering incentives such as a reduced or delayed franchise fee and veterans can qualify for a discount.  Several other possibilities exist.

7.)          A franchise can help you in areas where you may not have a lot of experience – Any new business needs to quickly find customers and start generating cash flow.  A new business owner doesn’t have time to figure things out on their own which can be even more difficult for a younger owner without a lot of work experiences to rely on.  However, a franchise company has already figured out what is required and how to attain desired results quickly.

To learn more about owning a business as a young adult (or any age), take the next step.

Students spend a tremendous amount of time and money earning their degree, but still can lack direction and turn to a Career Center for help.  Some are not even sure they want to get a job and become an employee.  Perhaps you are contemplating becoming a business owner, but don’t know how to go about it.

The answer is to work with an experienced adviser who specializes in small business and franchise ownership.  The adviser will be able to help you discover your strengths and weakness and help determine if you should become a small business owner and if so, which business type or franchise would be right for you – one that is well positioned for you to attain success at an early age!

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

 

Filed Under: Franchise Advice, Franchise Selection Tagged With: , , , ,

7 Great Business Ideas for Women, Not Always Found at a Franchise Show, that Women Entrepreneurs Love

July 14, 2012 By

According to International Franchise Association president & CEO Steve Caldeira, “Despite a continued challenging economic environment, franchising continues to offer opportunities for women and minorities to become small business owners, particularly when benchmarked against other industries.”

Simply put, the environment and timing for women to become business owners is ideal.  Here’s why; many women are accomplished in business, are highly educated and have the financial resources required to become business owners.  Franchising, in particular, makes a lot of sense because it allows women to go into business for themselves, but not by themselves.   Women in general are relationship oriented and they favor the comorodary and support that franchising offers them.

Although women are capable of running any franchise, many prefer the categories listed below that have significant growth potential.

7 Franchise categories, favored by women, which are experiencing significant growth.

1.)          Children – Parents want the very best for their children, regardless of the state of the economy, and make sacrifices in order to attain it.  Public schools have been making severe cutbacks in many areas and parents are looking for ways to compensate.  There is a huge demand for education, tutoring, after school programs, and entertainment options.

2.)          Staffing/Recruiting – The staffing industry generates over $9 billion annually and is poised for exceptional growth.  According to the American Staffing Association, U.S. firms hire 9.7 million temporary and contract employees each year. In fact, 25% of companies use staffing firms.  Many women entrepreneurs are recognizing this potential and becoming staffing business owners.

3.)          Healthcare – It is no surprise that as the baby boomers age their need for healthcare services will skyrocket.  Women can make exceptional senior care franchise owners because this category is extremely relationship based.

4.)          Beauty and Personal Care – Many women find fitness, weight loss, spa and cosmetics type businesses very appealing.  This is a crowded category with lots of competition so caution is needed when exploring specific franchises.

5.)          Financial – Women with financial backgrounds have several franchise choices which provide accounting, tax, payroll and bookkeeping services.  They also can find specific consulting type franchises that offer guidance to small and medium size business owners where their financial expertise is invaluable.

6.)          Home Services – Women tend to be the decision maker in the home when it comes to selecting companies to provide residential services such as carpet cleaning, painting, pest control, closet and shelving upgrades, kitchen remodeling, decorating, etc.  A woman business owner can do very well relating to a woman homeowner.

7.)          Retail – Apparel, coffee, yogurt, cosmetic, etc. are common business ideas for women frankly because women like and relate to these types of products.  This is a category where social media can have a very positive impact on sales and customer loyalty, and younger women owners are becoming savvier in its use.

Care should be used when exploring specific franchises in this category because it is highly competitive and can be expensive to operate because of store leases, inventory, insurance, overhead, etc.  It is essential that a local competitive analysis be conducted in relation to site selection.

To learn more about women business ownership and specific franchises that have significant potential, take the next step.

Identifying a great franchise to own requires much more effort than just attending a franchise show.  It requires introspection and women can have an easier time than men, looking inward to determine their needs and interests.  This self-discovery is a must before any specific franchise, is contemplated.  However, “easier” doesn’t mean the process is “easy”.  This is where a very qualified franchise adviser can add a lot of value by helping you determine your strengths and weaknesses, and create a search criterion to identify which franchise category and specific franchises may fit you best.  The franchise advisor can also guide you through the due diligence process and make you aware of the many financing sources that are available, even in this tough economic environment.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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Learn How to Make a Lot of Money: Best Business to Buy and How Much Franchise Profit is Possible

July 14, 2012 By

Perhaps you’ve been thinking of owning a business for years.  But what holds many people back is fear of the unknown.  They wonder if they will be successful, have the lifestyle they dreamed of, and most importantly, they wonder just how much money they, will really make.

Education and experience reduces fear.  If you were to start your own business there will be many unknowns.  If you buy an existing business, you may be unpleasantly surprised to find skeletons in the closet left by the previous owner.  So for many, franchising is a preferred way of ownership because it is a proven model that can be taught.  However, the secret sauce is the willingness and the ability of the owner to follow the franchise model.  You must be able to perform at or above the level of those franchise owners who are making the income you desire.  You will need to look very closely at what they are doing and compare your skill set with theirs.

7 things you must do now that will affect how much money you can make as a business (franchise) owner.

1.)          Look inside – If you want to know how to make a lot of money in your own business you better make sure it will meet your needs at many levels – personal, lifestyle, and financial.  Most would be owners say they will “do whatever it takes” to make their business successful.  But if you grow to hate the particular business and it becomes drudgery, good luck trying to grow your business and make a decent return.  Unfortunately, too many people get mesmerized by how much “potential” money a business may generate and don’t accurately assess if it’s really the best business for them.

2.)          Look outside – Buying a business is a major investment, so why go it alone?  It can be very hard to honestly assess your own strengths and weaknesses.  It can also be very hard to identify a business/franchise that would suit you well, especially when you know practically nothing about the countless ones listed on the Internet.  Here’s where a highly qualified franchise adviser can help – they can guide you through an entire due diligence process and educate you so you will know how to make the best decision for yourself.

3.)          Start at the end point, and then work backwards – Unfortunately, most people don’t think too much about how they will exit their business, before they purchase it.  The owner invests time and money to grow the business and may not be able to afford to pay themselves a high income during that time.  But eventually there needs to be a return to make the sacrifice worthwhile. This could be monetary but other types of returns are possible.  Some owners want to build a legacy business that will be passed down to family members.  Others may want to use the annual returns like an annuity to fund their semi and eventually full retirement.  Potential owners need to determine ahead of time if the specific franchise they are contemplating acquiring has the potential to eventually produce the desired result when it comes time to exit the business.

4.)          Think twice before becoming an owner operator – Some people may prefer a franchise where they are the only employee or the main employee, essentially performing all primary functions of the business.  If that’s what they want ok, but because they lack the leverage of others helping them grow their business, their earning potential will be capped.  So to, will the value of their company when it comes time to sell.  It is questionable if they will be able to get much more than they bought it for.  The dollars invested in purchasing their business could have been invested elsewhere and potentially growing to a higher value.

5.)          Determine how much income you can make? – Every franchise company is required by law to create a “Franchise Disclosure Document” (FDD) which is designed to protect the potential investor.  It will describe the investment and expected range of expenses.  One particular section of the FDD, “Item 19” is an earnings claim.  It is voluntary and some franchise companies disclose and others do not.  One reason some do not disclose this information is because they want to force the potential buyer to conduct their own due diligence with existing owners who normally are quite forthright in sharing all kinds of investment and financial return type of information.

6.)          Don’t try and grow your business on a shoe string – A sure way to jeopardize the amount of money you can make in a franchise is to underestimate the budget needed to grow your business.  An even worse scenario would be to not have enough money to sustain the business.  Unfortunately, this happens way too often and is a major reason why new businesses fail.

7.)          Calculate a potential return on your investment – Passive investments such as stocks are considered to be doing very well if they produce a return of 10% or greater.  However, as a business owner you are investing your time and talent, in addition to your capital, so your return (expressed as a percentage of the total investment) must be significantly greater than a passive investment.

A good franchise with its proven model and supporting systems can provide you the ability to leverage your involvement to realize an acceptable return.

To find the best business to buy with higher return potential, research the average earnings of a typical unit, normally over the first three years of business.  To derive this number, if not stated in the FDD, divide total royalty revenues from all units by the royalty percentage.  Then divide by the total number of franchise units and this will give you an approximation of average revenues per unit.  If you are uncomfortable deriving such information, consider using an accountant or CPA.  They can help you determine:

  • A probable total investment range of how much the franchise will cost
  • What the business break-even point will be
  • Your projected pre-tax income
  • The potential return on your investment (ROI)

To learn more about business ownership and explore possible franchises that will meet your needs at many levels, take the next step.

Owning a franchise can be the start of a new and very exciting life, if you conduct proper due diligence on the front end.  Using the services of an expert franchise advisor will help reduce your risk and increase your peace of mind that the investment decision you make is a wise one.  A franchise advisor can also make you aware of franchises you were not aware of or never really knew much about.  You will be able to assess each one and ultimately make a confident decision.  This process will increase the probability of attaining the franchise profit you seek.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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Considering Opening a Shop, Running a Business or Online Franchise: 7 Reasons Why People Chicken Out

July 14, 2012 By

In 2010, 565,000 new businesses were created per month according to the Kauffman Index of Entrepreneurial Activity 1996-2010, March 2011. An amazing fifty-four percent of the nation’s Millennials (born between mid, 1970’s and late 1980’s) either want to start a business or already have started one according to the Young Invincibles Policy Brief, November 2011. Although many people actually do open their own business, many just dream about it. What’s holding them back? To transcend from someone who dreams about owning a business, to someone who really does, you will need to overcome fear and indecision, and be willing to change.

To make business ownership a reality you must …

1. Be motivated to change – People will change when the pain of their current situation is great and/or they believe the gain they seek in owning a business is attainable. It means coming out of your comfort zone and taking educated risks. Owning a business is not easy and requires desire and commitment.
2. Overcome fear – Having the motivation to own a business is great, but to be successful Opening a Shop you have to really desire the lifestyle imagined or you will stop dead in your tracks in fear. A key to overcoming fear is education and believing the path to business ownership is actually attainable.
3. Obtain necessary capital – Financing a new business can be challenging, but it is possible with a respectable credit history and if you know where to look. Beyond addressing funding requirements it is necessary to calculate a potential Return on Investment (ROI). In the early stages of a business, delayed or reduced owner wages can be expected, but this reduction should be offset by the overall valuation of the business over time, building real wealth and equity for the owner.
4. Seek advice – A key to making a successful transition to Running a Business is much easier if there’s a path to follow. Obtaining guidance from qualified and experienced advisers can make all the difference in the world, before and after launching a business. Many people become franchise owners because of the structure and ongoing support a franchise provides.
5. Have support of loved ones – If you do not have the support of key family members, you should not consider owning a business. There will be enough challenges involved in launching a new business without the stress imposed by others.
6. Be confident in why customers will buy – Clearly “build it and they will come” isn’t good enough. There must be a real need for a new business’s products and services and it is vital the owner has the means to adequately sell to and support its new customers.
7. Become vulnerable (somewhat) – Being a successful business owner does not require being a “know it all” and in fact, that attribute can be a detriment. An owner needs to be open to leaning and adapting along with the ever changing market they serve. They also need to be open to suggestions from valued employees and customers.

To learn more about business ownership and having someone guide you through the process, take the next step.

The first thing to do when considering owning a small business or Online Franchise is to start looking inward. You should go through some self-discovery. Why do you think you want to own a business and just what do you think you will get out of it? As you define these attributes of needs and wants, your search criteria will emerge. An experienced franchise adviser can help you through this process. They also can help you identify appropriate franchises to consider and instruct you on how to conduct proper due diligence.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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Considering Running a Business? 7 advantages of Franchising vs. becoming a Start Up Entrepreneur

June 19, 2012 By

According to the book “E-Myth Revisited”, 73% of American workers dream of owning their own business.  Here’s why … a U.S. Federal Reserve survey shows the average household net worth for entrepreneurs is FIVE–TIMES more than that of the traditionally employed!

So why are you putting up with low wages working for an employer that could downsize you at any time?  Perhaps it’s because you don’t see yourself as an entrepreneur.

According to Wikipedia – “An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem.  Research has found entrepreneurs to be highly creative with a tendency to imagine new solutions by finding opportunities for profit or reward.”

Congratulations if you have what it takes to be an Entrepreneur, but most people don’t.  Another alternative is to own a franchise.  Franchise companies have taken on the role of entrepreneur so others don’t have to.  They have created the systems necessary (sales, marketing, operations, etc.) which enable their franchise owners to replicate their success over and over.

Here are 7 ways a franchises may be better than creating your own company as an entrepreneur.

  1. Less Stress:  Instead of beating down a path where none exists as an Entrepreneur, a franchise owner follows a well-worn path that has already led many to success.  It’s often said that entrepreneurs need an iron stomach and nerves of steel.
  1. The Franchise Company is Watching Your Back: Running a Business can be very time consuming, at least in the ramp up stage, with little to no time available to conduct strategy, competitive analysis or to enhance product and service offerings.  A franchise company (franchisor) does all this for a franchise owner (franchisee) so they can focus on sales and customer service to grow their business.
  1. Power of the Brand: Franchising is all about leverage.  The more franchise units that open, the greater the value of the brand, which should translate to a greater value for each franchise owner.  Collective advertising and marketing of the brand makes it easier to obtain and retain customers.
  1. Financing:  Lenders are normally more inclined to provide financing to someone looking to open or expand their franchise.  Lenders consider franchising to be considerably less risk vs.someone starting their own business.
  1. Faster Ramp Up Time: Because a franchise company provides many “systems”, a new franchise owner does not have to spend precious time trying to create them and can focus on growing their business.  A franchise company provides training on required technology, operations, marketing, sales, customer service, etc.
  1. It’s not Lonely at the Top:  In franchising, an owner has a big family to support them.  Sharing at the personal and business level occurs not only between the franchise company and franchise owner, but also between the many franchise owners who all have related challenges and opportunities.  As an entrepreneur, it can be difficult to obtain such support from others having similar business knowledge and experience.
  1. You can Multiply like Rabbits: Because of the many operational systems a franchise provides, it can be much easier for a franchise owner to duplicate their business relatively easily.  In many cases, the same support systems and operating processes can be shared among many different locations.

Don’t Let A Common Myth Stop You

“You can’t be a successful franchise owner if you are entrepreneur” is a common myth.  This may be so IF you are a full-fledged entrepreneur who would truly like to create a Start Up from scratch.  Franchise companies don’t want someone who is such a high level entrepreneur that they keep trying to redefine the franchise, which has already found the secret sauce of success.   However, most franchises do want an owner to have certain entrepreneur traits such as drive and ambition.  People from many walks of life can become very successful franchise owners, even some self-proclaimed “entrepreneurs”!

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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7 Great Places to Find Franchise Financing, Loans & Credit – From Small Business Lenders to SBA Banks

June 19, 2012 By

“Franchising, due to its structure and demonstrable track record of 40 percent growth over the last decade, offers the most promising vehicle to accelerate widespread job creation in this country,” said International Franchise Association President & CEO Steve Caldeira.  But he continues to say “acess to capital will remain the No. 1 issue for franchising in 2012”.  However, that doesn’t mean that franchising financing sources are not available!  Money can be found if you know where to look and can meet different lenders criteria.

If you are frustrated and frazzled trying to find franchise funding, here are 7 great places to look.

  1. Commercial Bank Loan:  Traditional bank loans should be considered but keep in mind large national banks have been more stringent in their loan qualification requirements. In our challenging economic environment commercial banks are seeking to greatly reduce their risks and will require collateral and guarantees.  To broaden your search for loans consider a local community bank or credit union which have proven a viable source for many.
  1. Business Line of Credit: Some lending sources will offer a business line of credit and will not take your assets or income into consideration to qualify.  Some lines of credit also may have the big advantage of being unsecured.  They require a FICO Score of 680+, an on time payment record, no disputes or frequent credit score inquiries.  In contrast to business loans, it’s not necessary to prepare a business plan.
  1. Small Business Administration (SBA) Loan: Realizing that small businesses are the backbone of our country, designated SBA Banks have been instrumental in helping many realize the dream of owning their own business.  SBA loans offer competitive rates, longer terms, no points and no pre-payment penalties.

The 7(a) Loan Program is SBA’s primary and most flexible loan program.  With a 7 (a) loan a commercial bank lends money and up to 90 percent of the loan is guaranteed. However, it needs to be pointed out that the bank receives the guarantee, not the borrower.

  1. Micro-Loan:

A Microloan provides small, short-term loans to small businesses. These funds are available through specially designated intermediary lenders.  These loans are called micro-loans because the maximum loan amount is normally $50,000 or less.  Often, this source of funding is provided to stimulate economic development in rural or underserved communities.

  1. Online Loan Exchange: There are online small business loan exchanges that can connect you to lenders who are interested in providing franchise financing dependent upon the financial criteria you enter.  Examples include companies such as Biz2Credit and BoeFly.
  1. Franchise Companies:  Because of the challenging economy a growing number of franchise companies are providing financing either directly or through third parties.  We know of many franchise companies that are closely aligned with small business lenders and sharing this information is part of the no charge service we offer our clients.

Here are some creative ways franchise companies are being proactive in assisting potential owners.

An equipment package could be leased from the franchise company directly or from a leasing company that the franchise company works with.

Another method could be a franchise company providing a promissory note to finance a portion of the franchise fee or starting inventory. A more recent practice by franchise companies that is growing in popularity is to discount the initial franchise fee.

In yet another example some franchise companies are entering into agreements with lenders.  Denny’s with more than 1,670 restaurants worldwide recently entered into such an agreement with Pinnacle Commercial Capital to create a $100 million loan pool for new and existing franchise owners to open new restaurants.

  1. 401(k)/IRA Funding:  Many people don’t realize they can use funds from retirement accounts like IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc., without incurring early distribution taxes or penalties.  By rolling existing retirement funds into specially created programs you can own a portion of a franchise inside your retirement plan.  These programs can potentially save you thousands in interest fees and protect your personal credit

Taking the next step.

Many people truly want to own a franchise but give up because they can’t obtain the necessary franchise financing .  But take heart knowing that a loan is generally easier to obtain for a franchise owner than for a startup independent business owner because franchises have an established trademark and have proven themselves in the marketplace.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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7 Benefits of Opening a Franchise Business: Build Wealth with Proven Systems and Corporate Support

June 19, 2012 By

By Jim Raubolt

If you have lost your job or afraid you might, join the many who have decided to open their own business.  People from all walks of life are finding an exciting new life as a business owner where they can control their own destiny and create real wealth over time.

Many specifically choose a franchise because of the proven systems and successful track record.  A key component of a franchise is that the business model can be repeated over and over again by people who have vastly different backgrounds.

If you are tired of working for someone else, here are 7 great reasons to own a franchise.

  1. You Are The Boss:  You are in control of your future.  Your focus is on making more sales and growing your franchise business to build wealth.  No more wondering if you will even have a job.  You feel in charge of your destiny.
  1. Build Wealth:  In a corporate job you make what someone else thinks you are worth.  With your own business you determine how much you make.  In addition to more income, as a franchise owner you are building equity as the value of your franchise increases over time.
  1. Less Risk: Opening Your Own Business can be far less risky than trying to hold down a corporate job that is subject to many forces beyond your control.  Good franchises have successful track records with training and support and systems that have been replicated and proven over and over.
  1. Comorodary:  In a franchise business you have the support of the franchise company (the franchisor) but also others who have invested in the same franchise.  You are surrounded by positive people who all want you to succeed.
  1. Our Country Needs You: The United States is built on small businesses and franchising is a very big component.  Do you know that a new franchise business is opening every 8 minutes?  As a franchise owner you be part of the economic foundation that has made our country great.
  1. It’s Fun and Rewarding:  Instead of working for a living, you are doing what you really like and helping others through the services you provide.  You are able to give back to your community which is extremely satisfying.
  1. Tax Benefits:  With your own business you may be able to write off certain expenses where in a corporate job employees must use after-tax dollars.

Taking the next step.

Many people come to realize the benefits of opening a franchise business but don’t know how to go about it.  They may go online and quickly get overwhelmed with the many choices.  They don’t know much if anything about all the franchise companies so just stop looking.  Don’t let uncertainty stop you from reaching your dream!  With the help of a highly qualified franchise consultant you will be able to determine which of the many franchises are right for you and how to go through the due diligence process.

 

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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Thinking Of Opening Your Own Business? 4 Advantages Of Franchising Over Regular Startup Companies

May 18, 2012 By

By Jim Raubolt

Although, according to recent studies, almost three quarters of all American workers dream about opening their own business, for most of them this will remain nothing but a dream. Even when presented with a good startup opportunity, lack of courage, lack of funds or not knowing where to begin will keep most of them from even trying to fulfill that dream. Are you ready to give up your chance to a better life so easily too? The following are 4 advantages of franchising over regular start-ups that will  make you reconsider.

1.       Lower expenses
This is one of the main benefits of a franchise,as it provides people from all walks of life the opportunity of owning a business. A franchisee is saved a lot of money from not having to make the initial investments so many startups require, as well as not having to build and promote the already familiar brand image.

2.       Know-how
In general, startup companies need a considerable amount of time adjusting and making amendments, before they can get their operations to run smoothly. One of the advantages of franchising is that the franchisor already has the business know-how and will share it with the franchisee right from the start. Thus, the franchise will get off to a flying start and will be able to allocate more resources to the actual selling process.

3.       Less worries
Most of the times, startup businesses imply that most, if not all, available time goes into getting more customers and keeping the existing ones satisfied. This leaves for a very limited amount of resources to be allocated for analyzing, developing and optimizing strategies. In a franchise business, the franchisor usually handles all of these demanding tasks, lifting the extra pressure off the franchisee’s shoulder.

4.       Proven success
When starting a business, people often wonder which way to go, what the best strategy might be and will it work or not? Franchising businesses are a totally different story, as they implement already established and proven methods of getting profits, thus providing less uncertainty and more peace of mind for the business owner.

Clear Choice Franchising has been Master Franchise owners and have helped start franchises for both startup and Fortune 500 businesses. We are key advisers for leading entrepreneurship programs where we host seminars on growing businesses and differentiate franchising over regular startup companies . We also provide assistance and advice for any person looking to open a franchise business.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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7 Ways to Reduce Risk When Looking to Purchase a Business, California Franchise or Company for Sale

May 18, 2012 By

Franchising is highly regulated to protect the consumer. Some states like California seek even further protection for a potential franchise owner. California currently has proposed legislation in their State Assembly called “The Level Playing Field for Small Business Act of 2012″. This legislation would provide significant protections for franchise owners in a franchise agreement, if passed.

But the best way to reduce risk when entering into a relationship with a franchise company is to conduct thorough due diligence on the front end before any decision is made. Becoming a franchise owner can be the start of a wonderful new life, IF the potential business owner is qualified and selects a strong franchise brand that is well suited to their personal skills and interests.

If you are thinking of owning a business, here are 7 areas to evaluate that can greatly reduce your risk.

1. Length of time in business: Franchise companies should have a track record of running their own corporate stores for at least a few years before deciding to franchise their concept. Essentially, they need this time to refine their model and make sure it is successful in the marketplace and that their model can be successfully replicated by franchise unit owners with varied backgrounds.

2. Length of time franchising: A really strong franchise brand recognizes they are actually in the franchising business, not necessarily the particular business they represent that offers goods and services. The franchise company needs to be very good at supporting all the franchise owners that are investing in their brand. They need to make sure all the supporting systems such as training, operations manuals, sales and marketing, etc. are working properly – enabling the franchise unit owner to grow and potentially become more successful than an independent owner would be. Otherwise, why would they purchase a business franchise to start with?

3. Leadership experience: It is vital that the executives running a California franchise (or in any state) have extensive and successful experience in franchising and that some have backgrounds relevant to the products and services offered by the franchise. Poor executive leadership results in bad blood between the franchise company and the franchise unit owners.

4. Financial strength: Just as a franchise unit owner should have ample financial reserves, so should the franchise company. The financial resources of a franchise can be found in their “Franchise Disclosure Document” (FDD), which they are required by law to give every potential franchise owner. The FDD will provide information addressing each of the seven risk areas in this list.

5. Failure rate: Just about every franchise brand will have some franchise unit owner failures. These can be due to poor health, personal issues, bad fit, financial difficulties, etc. However, if there are several failures and especially if they have occurred in roughly the same time period, this is a red flag, warranting a full explanation.

6. Lawsuits: If the relationship between a franchise company and unit franchise owner deteriorates to one of litigation, it may affect the image and performance of a brand overall. A good franchise company will do everything possible to avoid lawsuits, but unfortunately they may still occur. Keep in mind that proper due diligence while investigating a franchise and executing a sound franchise agreement will reduce the chance of lawsuits occurring.

7. Franchise owner satisfaction: Prospective franchise owners need to validate, validate, validate and not only with the franchise company, but with existing franchise owners as well, preferably at their place of business which facilities open communication. Most franchise companies hold a “Discovery Day” where a potential franchise owner will meet with the franchise company executives and support team. The Discovery Day should be a time where each party can really evaluate one another.

To learn more on how to investigate a franchise the right way, in order to reduce risk, take the next step.

Investing in a new business is a big step and is a major life decision. With so much at stake it makes sense to get help. An expert franchise adviser understands how to conduct due diligence and can help guide you through the process. The adviser will educate you and give you the tools so you know how to address each of the seven risk areas listed above before you purchase a company for sale. Any new venture entails risk, but when you know how to properly assess it, you should feel confident in your ultimate decision. Owing a business can be very rewarding if you have done your homework upfront to know it is the right business for you.

For more information on how a franchise adviser can help you explore business ownership, Contact us. There is no cost or obligation for our service.

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