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“HORN IN" On Franchise / Business Ownership

…a monthly post with blurbs, links, and other words-of-wisdom

regarding self-employment; career transition;

and franchise / business ownership;

as well as information for business owners

who may be interested in franchising their business.

 

 

July 2017

 

Franchise Opportunity Knocks

Self-employment Beckons

Start answering the call right here.

News you can use to help you find

The right franchise / business opportunity for you.

 

   

 

What’s so Great About a Franchise?

 

Many people dream of owning their own business. It sounds fun and exciting, and it truly can be. However, there are different types of business ownership that come with different perks and pitfalls. Independent Startups, for example, involve huge commitments: finances, time, and energy. Frankly, these startups depend on luck more than any other business model. It is high-risk, high-reward, but if the business fails, the losses can be devastating. This is why so many employees wishing to break away from the daily grind of a job tend to shy away from venturing out on their own to be their own boss.

 

With no disrespect to startups that made it—Google, Facebook, Apple, Microsoft, etc.—much of the success of these big names involved a large amount of good fortune. Of course, there were genius entrepreneurs behind them, and whatever they did, it worked, but not everyone has the resources, nor are they willing to risk it all on a new business or new idea. In most cases, that is a wise decision.

 

Unfortunately, many people wishing to be their own boss are afraid to become business owners because they immediately equate business ownership with the startup. This perception is analogous to avoiding the ocean because you are afraid of Jaws.

 

If you’re interested in becoming a business owner but can’t fathom starting from scratch, franchising is an excellent solution. In fact, Brad Sugars, owner of the world’s No. 1 business coaching firm in the world, strongly recommends franchising as a first, or even second or third business for the new entrepreneur.

 

Why franchising? “It offers the right mix of independence and proven strategy,†Sugars said, “It has the strength of a tried-and-true business model with the freedom that comes from working for yourself and managing your individual franchise, within certain parameters, as you see fit.†Furthermore, there are thousands of franchise opportunities available, franchising is becoming more popular than ever, and the investment can be relatively small, depending on what type of franchise you choose. Most importantly, of all significant business models, the franchise is the least likely to fail because it is strongly backed by the franchisor, who offers support and has a vested interest in the success of each individual franchise. Furthermore, franchising, as a general business model is expected to continue to grow steadily in 2017 and on.

 

In the course of my business, I am often asked “When I buy a franchise, what do I get for my money?†The short answer is “a business model.†A business model is a framework for creating economic value, in other words, it’s a system for making money.

 

Many first time entrepreneurs confuse the investment in a franchise as a purchase of physical property, when what a franchise represents is intellectual property. The capital equipment, inventory, furnishings, fixtures or the cost of building out the location is part of any business be it franchised or not. The real value in a franchise is that you get a fully formed, proven business model. An effective business model is the difference between success and failure in a business.

 

The old maxim that most businesses fail because they are under-capitalized needs more adequate explanation. Most of these businesses wouldn’t have been considered under-capitalized if they would have had an adequate business plan. Every year thousands of well capitalized startups with brilliant ideas for a product or service fail. This not for lack of money, it is because they eventually burn up all of their cash while trying to develop a system for delivering their product / service into the hands of a paying customer. All business models are initially perfected by trial and error – this is a very costly process that most small businesses cannot afford to live through. That is why so many private startups fail where franchises succeed.

 

The costs associated with perfecting a business model will almost always eclipse the cost of paying a franchise fee. The average franchise fee is about $35k. Most starts up waste more than that in advertising costs alone while they experiment with different marketing strategies. The advantages of having the learning and cost curves reduced to a fraction of the “learn as you go†method, are very significant to say the least.

 

The other cost component of a franchise is the royalty. This is a fee paid for on-going support which of course includes continuous improvement of the business model, access to vendor discounts, product R&D, marketing and advertising programs, etc. Typical support royalties are between 6% and 8% of revenue. This fee usually pays for itself due to the savings realized when the franchisee purchases goods and services for the business at below market, national account rates. Additionally, most franchisees will experience much higher sales than they would as a private company – greatly in excess of 8% higher - because of the franchisor’s well designed marketing strategy.

 

A franchise may not be right for everyone and they are certainly not all created equal, but a good business model can lower the risk factor and accelerate one’s potential for long term success. As always, the key is finding the right match between the franchise model and the owner-operator.

 

Oliver Wendell Holmes once said, “The great thing in this world is not so much where you stand, as in what direction you are moving.† Are you allowing your professional life to wander aimlessly, or stand still?  Perhaps you are in career transition and have always dreamed about being self-employed?  

 

Would this scenario be of interest and value to you   …a process where you receive assistance to help you better identify your goals, financial requirements, lifestyle needs and what you would like for your work-life to look like; then provided information on self-employment options and guidance on exploring these opportunities within the confines of a safe and no-obligation environment. 

 

Remember, a window of opportunity won’t open itself…

 

If you are ready, let’s discuss a methodical approach (not a one-time event) and an informative journey through the exploration / discovery process

 

 

 ENTREPRENEURSHIP

Is Living A Few Years Of Your

Life Like Most People Won’t,

So That You Can Spend The

Rest Of Your Life Like

Most People Can’t.

                  -Unknown-

 

 

************************************************************************************************************

Are you in career transition, or contemplating making a change?  Would you like a "sounding-board"?  As a former Human Resources executive and now a Franchise Coach / Consultant, I have over three (3) decades of assisting folks with career transition.  Plus, I have personally walked down that path a couple times myself.  If you would like to visit about career transition in general, entering self-employment via a franchise or business opportunity and / or UT sports, please call me at your convenience… 210-479-2491, or if outside San Antonio, 888-479-2491.  Or shoot me an email with your phone number and a good day(s) / time(s) to call you.  I will gladly provide complimentary advice and counsel. And, remember, I'm a coach, not a sales person.

  

Have a job you don’t like?  Seek other employment…I call that “Changing Your Curtainsâ€.  Perhaps, you prefer a bolder approach which may provide a new and invigorating work-life…I refer to that as “Changing Your Viewâ€.  In 2001, I decided to “Change My Viewâ€.  If you are ready…Let’s Talk.  I can help you “Change Your View†too…

 

Don't Just Change Your Curtains... Change Your View. I DidMy Story 

 

 

*********************************************************************************************

 

Looking for Texas Hill Country Property…

House, storage building, workshop, ponds, water well, and septic on 165 acres.

30 miles northwest of San Antonio / 9 miles southeast of Bandera.

 

********************************************************************************************

 

If you are seeking top-quality financial / investment advice, I highly recommend

Teamwork Financial Group and Doug Moe...Texas Ex.

 

Doug is the CEO of Teamwork Financial Group in San Antonio.  He is an attorney and CPA.  He has provided valuable insight to me and my wife regarding investment / financial advice, including guidance on having a â€Will†vs. “Revocable Living Trustâ€, re-balancing our investment portfolio, as well as assisting us move a portion of our IRA investments into Fixed Asset Annuities.  Over the past several months, I have had a number of very enjoyable meetings with Doug, since we have a tendency to spend time talking sports, as well as financial / investment stuff. Doug played basketball at UT in the 80s and is the son of Doug Moe, the former coach of the San Antonio Spurs. And, a great guy.

 

*********************************************************************************************

                                                                            Do You Need Furniture Repaired... 

 

If so and in the San Antonio area, CALL Pat Bonney...Texas Ex... Owner of a Guardsman Furniture Pro. franchise...The Most Trusted Name in Furniture Repair. Pat was on the UT baseball team in the early 70s.  I have used Pat's service multiple times for a variety of furniture repairs in my business and home.  Great guy and fantastic service.   210-849-9663   Email: gfpsa@sbcglobal.net

 

 

 

 

2017 newsletters; as well as copies of 2016 and 2015 newsletters can be viewed by going to the Franchise Quest Website.  Click on the Website link below, or go to:

 

www.franchise-quest.com

 

Resource Center > Newsletter

 

 

Small / medium size business owners:

Would you like to grow your business by franchising.

  

$1,000 Referral Bonus $1,000

 

Additional Information Is Available at Franchise Quest

 

If you would like to visit, please don’t be shy about reaching out…

I’m a coach, not a sales person.

 

Hook 'em. 

 

Larry S. Powell
Franchise Quest
210-479-2491
Outside San Antonio: 888-479-2491 
franchisequest@sbcglobal.net
Skype: franchisequest

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Franchise Quest


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