Careers in Business Ownership.
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1 Careers in Business Ownership
2 Topics for discussion Why own a business? Why own a franchise? Misconceptions about franchising. How to find the franchise that is right for YOU.
3 Why Own Your Own Business? Let s pretend for a minute If you knew you could be successful, what would be better about owning your own business? Q
4 Why Own Your Own Business? Success Fulfillment Create an Asset Flexibility Control Financial Security No More Layoffs Money
5 The Question: Yet most people choose to work for someone else! Why?
6 The Perception of RISK Going to work for someone is safe? Short term yes! - You re working now but... Can you be sure your job will be there tomorrow or next year? Can your excellent performance determine your stability? Can you ease off once you re established? Can you meet your long-term financial goals of security and retirement?
7 The Perception of RISK At first, owning your own business can be scary, but if you succeed: No one can take it away. You can t be downsized, right-sized, out placed, transferred, laid off or fired. You can build the business large or small. And the longer you own your business the safer it becomes unlike employment
8 Business Owner Axiom The longer one is employed the less your security st Year 2nd Year 3rd Year Job Business The longer you own a successful business, the greater your security.
9 Business Ownership Forms Before you understand how best to reduce risk, you have to consider the three most common business models and the risks in each. They are Existing businesses Start up businesses Franchises Each form has unique advantages and disadvantages
10 Existing Business Advantages Ask for 3-5 years financials Visual Good will (customers) Employees already trained and in place Disadvantages Will you keep the good will? Hard to find a good one Cash flow may be difficult to determine Employees may leave with new ownership Price may be unreasonable
11 New Start Up Advantages Exciting Your way Building an asset Disadvantages Highest risk Potentially longest $ return time
12 Franchises Advantages You can find out about a franchise before you buy it
13 Franchise Disclosure Document You must receive a copy of the FDD prior to laying out any $ for a franchise Must be updated every year Provides information on franchisor Will include any serious franchise issues Includes ALL current and former franchisees
14 Franchises Advantages (Cont.) You can find out about a franchise before you buy it Ongoing Support Franchisor Other franchisees Training Proven System
15 Franchise Guiding Principal You are in business for yourself, not by yourself.
16 Franchises Disadvantages Royalty payments-usually 4%-8% of monthly gross Pay a license fee Not totally independent Need to follow system RULE - If you won t follow the model, don t buy it.
17 Why Franchising Works Proven, systematic approach to starting & staying in business Experience Marketing expertise Business model designed to capture disproportionate market share
18 Your Franchise Selection Criteria Industry leader Room for growth Stable industry, NOT a fad Profitable model that is worth the investment Matches your values Enjoyable Affordable WHERE YOU FIT!
19 Franchising Facts Over $1.5 Trillion Dollar Business Only 12% of units are franchised Franchised units get 43% of the $$ 90% of franchises are still in business after 10 years compared to only 16% of independent businesses. CAUTION: Nobody buys an average franchise. Prepare to work hard!
20 How To Tell If It s The Right Franchise? Do Your Due Diligence Research Research Research Do general research on the industry Talk to franchisees Visit a franchisee Talk to more franchisees (minimum of 6-8) Visit the franchisor
21 Perception Franchises succeed because of the quality of their product Can you make a better hamburger than McDonalds? Franchises are about systems
22 Perception Successful franchises emerge in a new industry with no competitors When McDonalds started there were plenty of burger joints
23 Perception My industry knowledge is the key to success in a franchise. Key: Match your skills with what it takes to run the business
24 Perception Franchises are retail and fast food. Out of 100+ industries, services and B2B are growth areas
25 Perception Franchises are expensive They can be but 80% of the franchises we work with require an investment between $50,000 and $120,000
26 Perception To earn a high income, you would need to make a larger investment. There is NO correlation between the amount of the investment and the amount you can earn.
27 How do I find the right Franchise for me?
28 #1 Mistake in Franchise Research! Failure to separate the function of the business, from the function of the owner of the business!
29 Develop Your Personal Business Model? Your business goals: Financial & Lifestyle Your transferable business skills: Sales? Management? Customer Service? Your preferences. Your budget.
30 Conducting Your Research Identify possible matching franchises. Initial contact with Franchisor. Validate with Franchisees. Talk to accountant & lawyer Visit with the franchisor
31 Questions? Call anytime
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