"HORN IN" On Franchise / Business Ownership -April '19 Edition

[OrangeLarry]

 

 

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.

  

April 2019

 

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.

 

 

Is a Big Brand Name Important When Buying A Franchise?

By Dan Brunell

I am often asked if joining a franchise system with a well-known brand name is better than pursuing an up and coming concept. The answer is of course, maybe and maybe not. A well-developed brand can help bring customers to your new business and shorten your journey to the cash flow breakeven point. However, they can also be hard to come by for first time franchisees. Most “tier one” brand names i.e., McDonalds, are no longer attainable for the average aspiring business owner.

Most franchise opportunities are based on having a protected territory for each individual operating unit. This means that there are a finite number of units to be awarded to franchisees. So, as there is less of a commodity, its value increases. As a franchise grows and builds on its success, often the bar is raised regarding financial and experience qualifications. This is why the majority of the units of the most recognizable food franchises are owned by large restaurant groups. They have the experience, human resources and financial wherewithal to launch and manage these mega concepts.

Additionally, the very reason that people become aware of a particular brand in a market is because someone has purchased the franchise rights in that geography and has developed the brand identity locally. Unless you are watching the Super Bowl or some other big national event, most TV and radio advertising is local in nature, so people in a given market will only see or hear commercials for a specific franchise brand if there are already franchisees in that market. This can mean that the most desirable territory is no longer available by the time a concept has strong brand identity in a market area.

McDonald’s was once a local shop in San Bernardino, California, as was Taco Bell. These giants, like all companies, started off with an unknown brand. The key to the success of a franchise lies not only in having a good product or service, but in having a proven system for doing business that can be replicated. A big part of that system for doing business is having solid sales and marketing programs to build a brand name in your market. Typically as a franchisee, you will be contractually obligated to spend between 2% and 4% of your revenue on brand building whether the company you choose is a household name or a new comer, so don’t plan on saving money on advertising if you go with an established brand.

Despite the common misconception that the value of a franchise is linked to its existing brand recognition, the real value in a franchise is in the business model. A business model is simply a way to make money. That is what you are buying when investing in a franchise. For example, the value of paying someone $40k to teach you how to make $100k every year is enormous. Every business goes through a trial and error phase to determine how to operate most efficiently. This is why most businesses fail - they simply run out of money while perfecting their business model. While there is nothing wrong with buying into a household brand name, it is by far not the most important element. Most of the franchise brands that thrive in your local market were thriving somewhere else before anyone in your town ever heard of them. If a franchise has perfected their model, with a good operator it will work anywhere that has the appropriate demographics to support it. So it does not matter if you have never heard of a franchise before. What matters is whether or not it has been proven to work in other markets similar to your own.

Often a newer concept will be the best choice for a prospective franchisee. Investing in a franchise is often like investing in a stock, in that it is better to get in on the way up. You may be able to build substantial equity in your business by getting in early on a future mega brand. Also, you can find a company that has a great stake in your success and will bend over backward to help you. This is what franchising is all about. When both the franchisor and the franchisee are in direct alignment on their goals, the best results follow. Unfortunately, this symbiosis sometimes erodes when one party is a multinational corporation and the other is a little guy starting a new business.

Instead of selecting a business that is simply familiar, look for one that you will really enjoy. Owning your own business should allow you to earn a living on your own terms. If possible, why shouldn’t you have your cake and eat it too? By identifying what kind of hours you would like to work, what environment you’d like to be in and who you wish to have as customers, you can go out and find a business to support those goals. There are many more up and coming brands than there are mature ones, so you will have a much wider array of options and a better chance at finding something you love. Get help from a competent franchise consultant who knows the marketplace. It will be cost free and painless and they can show you interesting options that are not plastered across every franchise search portal.

Since territory availability is so critical, with a younger concept you will have a much better chance at getting the territory you want. Some people genuinely do not mind commuting, but it is great to have your business close to where you live. If you have little or no commute time to deal with every day, you can spend more time earning money or enjoying the fruits of your efforts. Think about how many hours you spend commuting each week and place a value on that time. Could those hours be better spent? The answer for most people is yes.

With a new concept you may be able to meet an underserved need in the marketplace. This is always a good thing for a business, but don’t be afraid of competition. Yes, there is a point when a market is saturated with a particular product or service, but this determination needs to be made carefully. Most franchise companies will look at a market area and determine that if all of their competitors are there, then they should be too.  To most businesses, competition is proof that there is a market for a product or service in that area.  Often, newer concepts have learned from the mistakes of the first movers and have a much better service model. They are typically more agile and can respond to market needs more readily too.

When looking at an up and coming franchise, it is important to look for franchising experience among the members of the management team. They may be a young company, but if the leadership is very experienced in franchising you can feel a little more comfortable being in the beta phase of development. If possible, try to find a company that has at least twenty units and 3 to 5 years of operating success. These minimum criteria can help you determine if a concept is going to have legs in your area too.

Whether a big brand name or an up and comer is right for you depends on your unique situation, but either way, finding a solid business model should be your primary objective.

Go confidently in the direction of your dream.

Live the life you have imagined.

                                              -Henry David Thoreau-

 

Entrepreneur Defined… If this describes you or who you want to become, then take the next step.

• An entrepreneur is a person who will see the embryonic seeds of an opportunity well in advance of others. Others will eventually only see a lost opportunity.
• An entrepreneur will see risk as an opportunity. Others will see opportunity as a risk.
• An entrepreneur will look forward to the challenges and hard work that an opportunity will bring. Others will only see an uphill struggle.
• An entrepreneur will continue to work at that opportunity irrespective of set-backs, make mistakes, pick themselves up and learn from their mistakes. Others will give up the fight when the going gets tough.
• An entrepreneur will work outside of the normal business framework in order to feel free and unrestricted whilst others will have a need to build an even stronger framework in order just to feel safe.
• When the opportunity is finally realized, an entrepreneur will not say 'I told you so'. An entrepreneur will say to themselves not others, 'I knew I could do it'. Others will say, 'I wish I had done that'.

 

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

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Home Modifications…Senior (Aging-in-Place)

Executive model construction business specializing in residential/commercial handyman projects and home modifications for the senior, (aging in place), and disabled market. We can finish a homeowners to do list and/or help with handicap accessibility by installing a grab bar, widen a doorway, add a wheelchair ramp or remodel a bathroom. The model drives profitability by using a combination of specialized employees and contractors with a dedicated scheduling center that also eliminates the need for an office manager/dispatcher.

Our Home Modification Program taps into the booming “Aging- in - Place” market. Program focus is on home modification and specialized equipment for seniors and disabled.

Features of the Business

• Recognized in 2014, 2015 Entrepreneur’s Franchise 500.

• 2015 INC Magazine recognized as top 500 Business.

• Online customized business management software. Software allows entire business management from CRM to Key Performing Indicators.

• Company personnel have extensive experience launching, supporting, and growing construction businesses.

• Strong earnings claim – Item 19 is in the FDD.

• Focus on home modifications and specialized equipment for senior and disabled market through established local and national referral sources. This is HUGE!

• Executive model, no handyman / construction experience necessary.

• Scheduling Center fields calls and books appointments on behalf of franchisee. This also alleviates the cost of office manager or dispatcher. • Business model utilizes combination of specialized employees and skilled contractors. Provides wider spectrum of services to clients. No job too big or small.

• Proven technician recruitment and retention program.

• Low cost of entry – Under $100,000.

• Franchise Marketing Assistance.

• Accounting support.

• National initiative in place to help secure retail and property management accounts for franchisees. Already doing business with Starbucks, McDonalds and several other national retailers on the local level.

 Desired Background of Prospects and Ideal Candidate

• Good Networkers. Willing to get out in the community and develop referral sources.

• Leaders. Good management experience desired. Outgoing and personable.

• Coachable, team player.

• Good with employees, recruiting, retaining, motivating.

• Willing to follow a proven business system.

• P&L experience a plus. Computer skills a must.

Investment: $70,640-$128,643 
 

 If you are interested in discussing and learning more about this opportunity, 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.

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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… 219-479-2491, 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.

I am a coach / consultant for those who desire to explore and LEARN about franchise and business opportunities…I do not sell or broker franchise / business opportunities.

 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 supportive, educational and no-obligation environment?   

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

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I highly recommend:

 If you are seeking top-quality financial / investment advice...

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 Will vs. Revocable Living Trust, 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

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

Don't Just Change Your Curtains...

Change Your View. I Did. My Story 

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.

 

Larry S. Powell

Registered Franchise Consultant

Certified Franchise Consultant

CLICK HERE For Complete Contact Details

And To View My Video Business Card. 

Franchise Quest...Turning Your Dream Into Reality

San Antonio, TX 78248

210-479-2491 Direct Line-San Antonio

888-479-2491 Direct Line-Outside San Antonio

Email:  franchisequest@sbcglobal.net

Hook 'em