The Franchise Ambush, Part II How to Help Your Friends & Family Help You
Youâre in the market to buy a franchise, and youâve noticed a concept that you like. Youâve read the website, surveyed the marketing materials and studied the Franchise Disclosure Document. In addition, youâve spoken to the franchisor a number of times. Although your spouse may not be completely on board, youâve kept him or her in the loop. Itâs looking pretty good so far.
Advice that Helps
If you are serious about becoming a franchise owner, the next step would be to look for advice from business professionals who own practical experience in franchising, in the industry that you are considering and better yet, in the franchise you are looking at. The franchisees are a tremendous resource and in most franchise systems they are open and inclined to help. An accountant that has experience in this industry and knows the norms regarding profit would be very helpful. A franchise consultant that has years of experience in franchising can provide you with a balanced point of view regarding the opportunity. Finally, a lawyer that specializes in franchising can be helpful in reviewing the structure of the relationship.
Advice that Disorients
Far too often, potential franchisees get so excited about the idea of being a business owner that before they fully see the risks and rewards, they start reciting their loosely defined dreams to anyone who will listen. They talk about their business idea with their drinking buddies and even with Great Aunt Edna. Now letâs be realistic, Great Aunt Edna loves you but sheâs been out of the working world for 25 years – she does not have an email address and still enjoys watching reruns of Bonanza. There is very little she can do to help you as you seek out more franchise information. There is a lot, however, that she can do to disorient you. Be careful.
How about your buddy who works for the U. S. Postal Service? His lifetime has been spent avoiding risk, maximizing salary, founding his pension and surviving until retirement. Thereâs nothing fallacious with that, but is he competent to offer you much guidance? Probably not.
Many people have your best interests in mind. But well-meaning advice from people who simply donât know business ownership, the industry you are looking at or have practical franchise information can be incredibly disorienting.
Advice that Matters
Spouses commonly balance each other in temperament. If you are a go-getter, thereâs a high probability that your spouse is more cautious. She will remind you that the paycheck is good, and will worry about what will happen if you fail. These are critical conversations to have. But you want to be prepared.
First, collect all the facts and make certain you have a clear idea of what it involves to be successful in the business. How long does it commonly take to break even and what level of revenue would a successful business make. Learn everything you can and involve your spouse every step of the way. If you spouse has a concern, listen to the concern and get as much information on the topic as you can to share with your spouse. These decisions are normally made as a partnership. If you and your spouse decide not to move forward with a business opportunity that you love, wonât you feel better knowing youâve given him or her all the facts? At least then you know you gave it your best shot.
Here are some of the most common objections you are likely to hear, as well as some facts to fight those perceptions.
1. Donât most small businesses fail?
Several long-term studies have established that, unlike independent start-ups, franchises have a solid success rate. Having a franchise (vs. starting an independent business) gives you a tremendous head start, including:
Â· A proven operating system that can predictably create success.
Â· National marketing programs
Â· Group buying power
Â· Training and on-going support
Â· Manuals, procedures, job descriptions, accounting help, and so much more.
To gather more information on this matter go to the Download section of www.educatedfranchisee.com <http://www.educatedfranchisee.com>. There are a a couple of reputable surveys that will give you all the franchise information you want in regard to success rates.
2. Why donât you just change jobs?
Any book you read on wealth creation will tell you that very few people get wealthy by working for other people. Wealth is usually created in three ways – the Stock Market (less than 10% of millionaires made their wealth by investing in the stock market), Real Estate Investment ( 10 – 20% of millionaires created their wealth by investing in real estate), and Business Ownership (70 – 80 % of millionaires created their wealth by building businesses).
Getting another job will not move you to the next level. If you want to create wealth and a better future for you and your family, business ownership constitutes the best path. Chapter 5 of The Educated Franchisee can help you learn more about how business ownership leads to wealth creation.
3. Perhaps you should think about it some more.
You should not make a decision of this magnitude in a hurry but you do not want to delay either. Do your homework, ask all the questions and take notes – then make a yes or no decision in a timely and businesslike manner. One characteristic of successful business people is their ability to make good business decisions with incomplete information. If you find yourself paralyzed, be cautious, business ownership may not be for you. Yes or no, the most important thing is your ability and willingness to make a decisive decision and move forward.
4. What if you fail?
You want to enter business ownership with the knowledge that you may fail. Naturally you could also lose your job. There are no guarantees with anything that we do in life. Nobody can assure success. All you are able to do is stack the deck in your favor.
If you know that most franchisees in your chosen system are happy with their success; that you have similar skill set to successful franchisees; that you are adequately capitalized; that you trust and can comply with the franchisorâs system; and that you are ready to work hard, you are on your way to being confident that you can succeed.
Before you begin to share franchise information with your friends and family be sure you have the facts straight. Educate them. Help them join your team. And if they canât be on your team, perhaps thatâs OK. Everyone likes to give advice, and of course, everyone gives advice from their point of view – their reference base. As long as you know that, you can value their concern, and not let it overly influence you.
This Article was written by Rick Bisio, a franchise consultant who is dedicated to franchise education. Rickâs objective is to create educated franchise buyers that have clearly defined objectives and are able to recognize a great franchise opportunity. Visit the http://www.educatedfranchisee.com for a free monthly newsletter and more information.
About the Author
Since 2002, I have been given the wonderful opportunity to share my experiences in the franchise business by providing coaching services to individuals considering buying a franchise. My objective in this book is the same as in my practice. I want to match the right person to the right franchise and, in the process, share my knowledge about the franchise business.Buying a franchise is an important decision. I know this book will help you.