Being very connected has its benefits because now we can access information that guides us toward an informed and educated franchise-buying decision more readily than ever before. The social networks in particular are an excellent resource to validate and exchange ideas and experiences on or about franchising. That being said, when is it too much information? And, are we receiving unbiased facts from these multitudes of sources?
Before investing in a franchise—which, by the way, is as serious a decision as purchasing a home, sending your children to college or deciding on which investment works best—you must fully understand all the consequences. This is a life-altering event, one that will change everything!
So, how do you leverage the TMI (too much information) factor, making sense of what can all too easily become an overwhelming endeavor? Who are your trusted resources?
Where to Begin
For starters, I have some questions you should be asking yourself as you consider this journey into business ownership:
1. Are you buying a job and, if so, why?
2. Are you comfortable with failure?
3. Are you willing and able to commit to working 60 to 80 hours per week in the start-up phase?
4. Have you thoroughly planned out your finances? (Whatever the total investment is, you can plan on 20% more.)
5. What makes you think you can operate, manage and grow a business, one that you may or may not have much experience in or with, even though you will have guidance from the franchisor?
6. Do you have an experienced team and resources lined up to support your business decisions?
These are just some of the most basic personal-inventory questions I ask early on when working with franchisee candidates. They are designed to make you think two steps ahead of yourself before moving forward.
My candidates and I must understand from the beginning that this is a process, one that is complex and demands absolute engagement. If a candidate is not fully engaged, then we have to find out why sooner rather than later. Once he or she begins to understand the complexities of franchise ownership, many opt out.
But for those who have what it takes and want to move forward, my job is to prepare, guide and inform using complete transparency and with unbiased focus.
A Working Partnership
When you work with a Franchise Advisor like me, the fees are paid by the franchise community; there is no cost to you. As such, the relationship works extremely well because we are all equally invested and committed to the process. The candidate wants and expects professional and unbiased research and advice so that he or she can make an informed decision. The franchisor wants a smart, committed and fully engaged candidate who has been prepared and who is serious about and qualified for business ownership. And lastly, the Advisor only is compensated when the work is completed with absolute integrity, so his or her role is to ensure that the process works well and to everyone’s satisfaction and benefit.
When it comes to franchising, it really all boils down to one simple dynamic…it’s a partnership, a business relationship that is grounded in complete transparency and lots of due diligence on the part of all the involved parties. When a franchise owner (aka franchisee) is generating business revenue, they pay a royalty back to the franchisor, which is how the franchisor makes a profit (one of the principle ways). That’s why it’s in everyone’s best interest that the partnership is a productive one that works all around.
A Trusted Resource…
I have been invited and I am really honored to be the featured Franchise Advisor for BusinessOpportunity.com. As such, I will continue to write and comment on the site’s blog and participate in its Entrepreneur Exchange forum, all of which combines to create an excellent and trusted resource for you to learn and communicate with like-minded business people and other entrepreneurs.
Meantime, I welcome your comments and ideas. Everyone has a story, and I am a great listener. Enjoy the journey!
Stay tuned for Franchise Ownership? Part 2, coming up soon!