Dunkin Donuts Franchise Profits
Posted On March 13, 2010
Is it Time You Explore the Self-employment Option?
IS IT TIME YOU EXPLORE THE SELF-EMPLOYMENT OPTION?
By Dennis Krieger
A few years ago it was Enron. Now it’s Lehman Brothers and Merrill Lynch. And these are just companies that went bankrupt. Add in all the companies that have downsized, or “right-sized,” it doesn’t matter, and one thing is for sure, Corporate America is not what it used to be.
Most of us learned from our earliest school days, “get good grades and you’ll get a good job.” Now there’s nothing wrong with that advice, it’s just there aren’t as many “good” jobs out there as there used to be.
Back then, when we lost our job we’d just update our resumes, jump on the employment merry-go-round: search the classified ads, contact the executive search firms and then network until you realized how ineffective repeating the mantra, “Hey, if you know of anything….” really can be.
The advice that few, if any, guidance counselors ever mentioned was, “why don’t you go into your own business?”
Whether you’ve been downsized or right-sized, whether your company has been sold or gone bankrupt, or whether you’ve just always dreamed of owning your own business, considering the current, and future reality of the job market for years to come, now may be the ideal time to explore an alternative to Corporate America. And the most viable option available is also one of the safest and successful forms of investment today…the franchise.
That’s right, I said it, franchise…the “four-letter” word most of you have sneered at when admiring your glass framed degree. That said, maybe it’s time to rethink your perceptions.
Simply put, franchising is a method of doing business by which a franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system described by the franchise owner and substantially associated with a franchisor’s trademark, name, logo, or advertising.
For most people the most common form of franchising is the business format franchise. This format basically includes requirements that the franchisee deal exclusively in sponsoring the franchisor’s products or services, using their trade identity and image, and conducting business operations in accordance with prescribed and standardized procedures.
Now, before you picture yourself making bologna sandwiches at five in the morning, let me bring you up to speed on today’s franchise landscape. First off, it’s not just “burgers and fries.” Today’s modern franchises span almost 80 industries and 4,000 choices…from the well-known, McDonalds, to such relative newcomer’s as The Glass Guru, a glass and windows restoration franchise.
Moreover, today’s franchisors offer Multi-Unit, Area Development and Master Franchises. These organizations are structured like any contemporary Corporation, with manager’s reporting to you, or Headquarters operating tens or hundreds of units across the country. Many Master Franchisee’s run national organizations with multi-million dollar revenues.
According to a 2005 The New York Times article, Franchisees with Advanced Degrees, “An increasing number of business school graduates and corporate executives are going into low-technology franchises like Dunkin’ Donuts and gas stations. The format lets them run their own show just like full-fledged entrepreneurs while providing a corporate security blanket that keeps the risk of failure low.”
Regardless of the industry, all franchisor’s seek a win-win relationship with their “partners in profit.” Franchisors offer a proven business system, advertising, training and the continuous support that allows the franchisee to be in business for himself, but not by himself. Moreover, franchisors typically don’t require any specific expertise in their business. Instead, they look for business people willing to work hard and follow their system. A franchisor’s sole mission is to help their franchisees achieve success.
Is there an advantage to buying a franchise over starting your own business? In a word…yes, because you’re dealing with a proven business system. The operational and marketing mistakes have been made by someone else, and the corrections have been made. A system is in place, and all you need to do is implement and follow the system.
The big question is, if you decide to explore franchising, “how should you go about it?” Here you have a few choices. Now, in the past it was a laborious, difficult snail-mail process. Perhaps you saw an ad in a newspaper or trade publication, maybe you visited a franchise while traveling and thought, “Boy, this would be a great business in my town.” Then franchise consultants came along and offered to help clarify your search. For a small fee they would gladly take you through their process to help you find a few ideas…or steer you to one of their favorites. And then, finally, the internet arrived.
Now you can investigate thousands of franchise models. Wow! Imagine how wonderful it will be to spend countless hours investigating thousands of new opportunities. Only problem is, getting the information you need to make a smart decision is sometimes very difficult. And, almost franchise websites give you only partial information. You must take it to the next level to find out more. Talk to the franchise representative and most likely you’ll be told that the franchise he or she represents is, “the best money-making opportunity you can find.” And after all, hey, who doesn’t want more money?
But here’s the rub…although others are doing well with the franchise model, is it really what you want? Does it really fit you? After all, you are unique. And, just because Bob enjoys talking with his customers, will you? And because you like dogs, will running a kennel give you what you want out of a business? Here, the answer is…probably not.
Why? Because getting into a business you basically don’t know is not something to take lightly. Although the “headline” may appeal to you, do you really know exactly what characteristics and traits will make you successful in that franchise’s operating model? And most importantly, does it fit your personality?
Until now, it’s been extremely difficult to answer those questions. Yet, they’re the most important answers you’ll need to ensure you find a business that fits your personal style. Because when all else is said and done, finding the right answer to these questions is what will make it a good business for you.
It’s not enough to find a franchise that fits your interests and financial capabilities, true long-term success occurs when your natural behavioral style matches with the operating style of the franchise you select. And the best way to know that is to complete a behavioral assessment survey to gain an in-depth understanding of your behavioral style. When the two styles are in concert, the odds of success in your new franchise increase dramatically.
Until recently, behavioral assessment surveys were conducted primarily by consulting firms for major corporations. Slowly over the past decade some of these tests have become available for consumers. Now, sophisticated companies have been using them to better match people to jobs and as a tool to improve their managerial and leadership effectiveness.
You’ll be glad to know a few select franchisors have discovered the power of behavioral assessment matching and are using it to achieve a better franchisor/franchisee fit. Although some use these tests at the beginning of the franchise exploration process, most use it at the end to “make sure” they recruit a good fit for their operating model.
Which bring us to a new website, www.EZMatchfranchising.com, the first on-line franchise portal website that incorporates a scientifically-validated behavioral algorithm to match prospective franchisees’ profiles with those of a franchisor’s operating model.
The result? An immediate short-list of the franchises that match your personality, background, financial capabilities and interests.
Here’s how it works: in about ten minutes a user completes the EZMatch Survey. Immediately, the system offers the user up to ten matching franchises. That’s it. Now you have a short list that used to take months, and in some cases, years to achieve.
Is it a panacea? Does it tell you the only franchises that truly fit? No, but it’s a wonderful tool that will save you countless hours of investigation, give you a quality short-list from which to start your franchise exploration efforts, and along the journey, help you to understand the role your personality plays when choosing a franchise. After all, you will be investing a lot of your money and certainly a lot of your time building your business. Don’t you want to make sure it’s not time and money wasted on the wrong model?
In addition, www.EZMatchfranchising.com provides the user with a free 35 page report. It provides an in-depth explanation of their style to gain a better understanding of their motivations, strengths and areas for development…ultimately helping potential business owners increase their success and enjoyment with the franchise they choose.
So, if you’re interested in knowing more about yourself and where to focus your franchise search efforts, and increase the odds of success with the franchise you select, take the short survey and get started in the right direction. It can only help.
About Dennis Krieger
Dennis Krieger, co-founder of www.EZMatchfranchising.com, has 30 years of experience as a franchise consultant, career coach and executive search consultant. Prior to founding EZMatchfranchising.com, he helped clients explore and buy franchises across the nation. Before that he spent two decades in the executive search industry. He has successfully owned and built two franchises and one independent business. He has also worked for two national franchisors and he has been frequently quoted in The Wall Street Journal, The National Business Employment Weekly and Smart Money Magazine, among others.
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