Where do you start
Lauren Grant a Franchise Specialist with The Franchise Consulting Company gave an engaging talk at a Sales & Marketing Leadership Alliance Meeting, on the new opportunities for folks who want to run their own business. I can guess what a lot of folks are thinking, a Franchise is a fast food restaurant and Dry cleaning. Well this is not your grandpa’s franchise opportunity,please keep an open mind.
Common misconceptions are: Franchises are all fast food, they are expensive, you need to be an expert, require hands on management. Lets talk about these misconceptions one at at a time. Franchises come in many shapes and sizes, from barber shops – hair salons, to driver training schools, in home Senior Care, computer support – service, to UPS Stores, there is one to fit many business needs. Next they cost too much, they often start at $50, 000 to $120,000 the middle is $150,000 to $250,000 the upper range is $350,000 to $500,000. Much depends on if it is a work from home or storefront type of business. The average is in the $100,000 range.
The three top keys to success for Franchisees:
- Good fit for your business skills. You need to have transferable business skills like Sales, Team building etc. Before you are even considered for as a buyer you are often given a series of tests to see if you are a good match for their business model. Does your personality type match their business model? Are you a people person or prefer to work alone?
- . Follow the system, what you buy is a proven system. Follow it and you are on the road to success. Don’t re-invent the wheel. You are buying a proven process for running a successful profitable business.
- Capitalization, a fancy word for having enough money to make it from start up to profitability. Depending on the Franchise business model and your desired income it it will generally take 2 years to replace a $50-$70k income. It will take about 3 – 5 years to reach a point where you have replaced a previous annual income in the $100,000 range.
Do your due diligence Lauren emphasized you need to talk with business owners who built the same franchise you are looking at. The Master Franchise should be happy to introduce you to several call them, visit them in the trenches and see if it is for you. Some are very hands on others allow you to hire a manager and be hands off. Only you know for sure if it is a match.
So now your franchise is profitable you have a manager handling the day to day chores whats next. Well your exit strategy of course, some folks build a business to sell it at a profit, others build it for their kids, others build it hire a manager and work part time its up to you and depends on they type of business.
Conclusion:
There are as many Franchises as there are business needs in the community these days. There is something for most any business interest and experience.To learn more feel free to reach out to Lauran Grant at lauren@thefranchiseconsultingcompany.com or 949-887-2600
Lauren Grant
Lauren has been a business owner since 1996 and franchisor, she understands the hard work and effort it takes to build up a successful business. She enjoys the opportunity to help others take advantage of another’s hard work creating their own secret franchise formula .
Next Sales & Marketing Leadership Meeting:
How to Pitch Big Ideas to Influential People and Mesmerize Your Audience
by Sales & Marketing Leadership Alliance
DATE: Thu, January 26, 2017, 5:30 PM – 7:30 PM PST
LOCATION Real Office Centers, The Vine OC
5151 California Avenue #100, Irvine, CA 92617
About the author: Phil Sallaway is a Sales Leadership Alliance member with 20 years of business experience. He has managed product lines as large as $50 Million. Career highlights include: placing a product on the “This Old House” TV program and being published in many national trade publications. He has been a voting member on a joint ISA, ANSI, IEC standards committee on gas detection. Phil is currently the Product Manager at SalesForceMaven.com
Phil Sallaway
25422 Trabuco Rd. #105-346
Lake Forest, CA 92630
Cell: 949-636-5286
E-mail: psallaway1@aol.com
Phil Sallaway - SalesForceMaven 