As FranNet consultants, we are here to help you consider the pros and cons of franchising in your pursuit of starting a business. There are many different situations and circumstances that can point you towards franchising – just as there are many different situations that can point you away from franchising.1. Are you willing to pay for and follow someone else's system? (or do you think you have a better system?) When investing into an already established brand and system, there are going to be certain things to adhere to. For example, imagine if McDonald’s franchise owners were able to market a different logo, change over to Pepsi products, or decide to remove the Big Mac from the menu. There will be varying degrees of flexibility in your franchise agreement, depending on the industry, but part of the brand awareness and operating efficiencies that you are investing into is achieved through consistency.For example, in many food and retail franchises, the customer will know exactly what he or she is getting when they walk into your business.
2. How much capital are you willing to, and can comfortably, invest, and still be able to cover your living expenses for at least 6-12 months? You might think you’ll be able to do things a little cheaper when starting your own business, but when starting a franchise, the upfront costs will be disclosed to you within ranges, so there will be few, if any, surprises. This may include the franchise fee, construction costs (if retail space is required), working capital, etc.3. What are your transferable skills from past employment/business, and which of those are you eager to employ in a new business? Just because you're good at something, it doesn't mean you'll want to continue doing it on a regular basis to make your business thrive. You may have to be a salesperson, while training others to run the operations of the business. You may have to focus on customer service training, while others market your business.
4. Are you comfortable with the franchisor, and do you fit with their culture? This is similar to finding a significant other! If there just isn’t a fit, you may become frustrated with your franchisor as the years go on.
5. Is there a compelling enough reason(s) for you to commit your money and talent to become (or remain) a business owner? A passion for a particular product/service, the allure of "being your own boss", or the fear of being bored in retirement is not reason enough to assume financial risk and time commitments. You must first determine that business ownership is THE solution to getting what you really want from your work and your life, both now and in the future.All FranNet services and consultations are FREE, and I would be happy to further discuss your interest in starting your own business and see if franchising is right for you. Remember, even Miguel Cabrera has a coach – consider me your franchise coach! Contact me at 313-821-5060 or mcory@frannet.com and we can set up a time to talk. On the west side of the state? Contact Brigitte Betser at 616-891-1374 or bbetser@frannet.com.
Don't forget to visit my web site at www.michiganfranchiseforum.com! You can also follow me at www.facebook.com/MFF.FranNet or www.twitter.com/markcory.
UPCOMING EVENTS
"Buy Your Own Business: An Inside Look at a Leading Restaurant Concept"
Wednesday, August 29, 2012
Caledonia, MI - 5:00pm to 7:00pm
RSVP Required - Dinner Server
"Franchising as a Career, an Investment, or Both"
Thursday, September 20, 2012
Troy, MI - 11:30am to 1:30pm
RSVP Required - Lunch Served
"Meet the Franchisors"
Wednesday, October 17, 2012
Detroit area - 4:00pm to 6:30pm
RSVP Required
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