Real-time Data can Inform Your Decision Today

By Mark D. Cory, Owner & Franchise Placement Specialist – FranNet of Michigan

Making a life-changing decision, such as whether to start a business, will always be fraught with fear and uncertainty. Add the dynamic of a global pandemic, and the tension mounts even further!  That being the case, why are so many Americans exploring, and even moving forward with franchise ownership right now? One explanation is that franchise research allows you to talk to, and maybe even meet with actual owners in the system you’re considering. In other words, you can gather data in real-time as to how franchisees are doing, even during the worst of times! 

At FranNet, we help prospective business owners conduct proper due diligence in order to make an informed decision, stressing that the most vital aspect of that process is interviewing existing franchise owners. These are people that live and breathe the business every day and can give you the best sense of what it’s like on the inside. 

During this pandemic, we’ve all heard stories about, or maybe have witnessed in our neighborhoods, businesses shuttering temporarily, or for good. However, my clients that are investigating franchises have been hearing some pleasantly surprising news from franchise owners they’ve been interviewing. For example:

• Franchisors in the education and fitness sectors are developing and/or producing online classes to help their franchisees retain as many students/members as possible

• Franchisees maintain or even increase their revenues because they provide “essential services” that were never, or very briefly, shut down, and are in high demand. These services may include in-home medical and non-medical care, commercial cleaning and sanitation, home improvement and maintenance, outsourced IT and digital marketing, sign manufacturing and more

• Franchisors and franchisees in the quick service restaurant (QSR) sector prioritizing enhanced delivery and mobile ordering capabilities to counter limited capacity and decreased foot traffic, and stay competitive in today’s socially distant environment. In fact, a recent TD Bank survey of franchised restaurants showed that off-premise sales have increased from 20% of overall revenue in 2019 to 39% in 2020

• Franchisors and franchisees working hand-in-hand to innovate cost-cutting measures to improve unit economics

This is just a smattering of the positive feedback I’ve received from my clients over the past few months. What makes it so credible is that it’s coming from those in the trenches, franchise owners that have their own skin in the game. These have certainly been nerve wracking times that no one wants to repeat, and some franchisors have responded better than others. At FranNet, we’re fortunate to work with an array of top-notch franchisors that have been proactive in creating new ways for their franchisees to adapt and pivot, making the best of the situation and turning challenges into opportunities. But, don’t take my or the franchisors word for it. Ask the franchisees! 

Have you ever thought that you’d be better off as a business owner? If so, this may be the perfect time to investigate your options. By starting the process now, you could be in a great position to launch your business in a few months, not only leveraging all of these recent innovations, but living and working in a safer world (as we all hope) to boot! 

I’m happy to talk with you about how I help people identify franchises that best align with their personal goals, strengths and preferences, and then to dig beneath the surface by talking with franchisees to find out what’s really going on. I can be reached at 313-821-5060, mcory@frannet.com or www.frannet.com/mcory.

A New Business? Now? Are You Crazy?

These are actual questions my wife asked me, NOT during the 2020 pandemic, but rather in mid-September 2001. The horrific 9-11 atrocity had just happened, the stock market was crashing and it was looking like the U.S. would be going to war with Iraq. Why would anyone in their right mind quit a lucrative senior management job and start a business? I have to admit, I did pause (for a day or two) and reconsider. But something (maybe naivety) prompted me to forge ahead with the plan I started formulating a few short weeks earlier. Perhaps it was dumb luck, but for many reasons the timing ended up being perfect! Eighteen years later, and having owned two successful franchises, I can empathize with those who are grappling with the idea of business ownership during current unsettling times.

Do I encourage everyone to do what I did? Absolutely NOT. Business ownership doesn’t make sense for most people. It takes a certain temperament, acquired skills that translate well, and a healthy personal balance sheet for starters. And, even more important, you need motivation and a very compelling reason for wanting to be independent. When all those ingredients come together, that’s the time to start, regardless of the near-term economic outlook.

Did you know that the majority of wealthy people in America are business owners, not employees. Many of them launched businesses in dicey economic conditions, and survived to tell about it (some via their own media outlets)! 

While lots of people dream of owning a business, sadly, most never do, even those that have what it takes as noted above. Studies have shown the primary reason is the fear of failure. Unfortunately, that fear often gets in the way of gathering the facts, and learning about such things as risk mitigation. Franchising allows aspiring business owners to bypass the significant challenges of a startup and choose an established business with a developed system and strategy, thereby mitigating some of the risk!

I know the pandemic can make it scary to think about going into business for yourself. Sure, gyms and food establishments have been hit especially hard, but look deeper and you’ll find there are many more "essential businesses" that are thriving despite the current situation. You would not believe how many of those business owners began right where you are now: Longing for more, doing their research, and choosing a franchise concept built to thrive under varying economic scenarios with the guidance and support of franchise partner! Many of those owners are extremely busy right now, providing much need services, such as home-care, facility sanitation, building modifications, and more. 

At FranNet, we help people determine whether business ownership makes sense for them, and, if so, how to strategically find the RIGHT fit. Our services are provided at no cost and with no obligation. We’re offering an array of online educational events, many of which focus on essential services and/or recession-resistant business. Check out our schedule at www.frannet.com/mcory, and click both Local and National events. Feel free to call or write with any questions, or to discuss your personal situation. Mark D. Cory, FranNet of Michigan | 313-821-5060 | mcory@frannet.com

A New Business? Now? Are You Crazy (Like a Fox)?