Finding The Right Franchise That is a Fit For You

A report issued by Goldman Sachs and Babson College cited that small business (defined as less than 500 employees) make up 99% of all employer firms. The report cites that existing small businesses accounted for over 60% of the private sectors net new jobs over the past two decades.

If you are considering business ownership where do you start looking?

The question becomes where are the businesses that thrive in all economic conditions?

It’s helpful to understand the positives and negatives of your options of business ownership –

• building your own (start-up),
  
• buying an existing business,
  
• or a Franchise model.

The advantages of a start up are that you have total control, there’s plenty of room for creativity, you and your team make the rules, and there is huge upside. The disadvantages are you must create your systems, it may be difficult to obtain financing, it may have a longer ramp up, and start ups have the highest failure rate.

An existing business has the advantages of having cash flow, actual financial results, an existing customer base, and an existing team of employees, but one needs to understand other factors. Discovering a hidden motive of the seller may be difficult to find out and your valuation of the business may not match the offer price. What if you found out that a key employee was going to leave when your takeover, how would that affect your view of the existing business?

With a Franchise model you can thoroughly research the business model and develop an unbiased opinion about the business.

Other advantages of a Franchise model include but aren’t limited to

• operating a proven system,
  
• having a powerful brand continuously supporting you,
  
• lower failure rate,
  
• lower entry cost,
  
• and financing options.

The Franchise business model does have limitations; some franchises are very structured, there are territory limitations, they may have preferred suppliers that you must buy from, and you must weigh the benefits against paying a monthly royalty.

Franchising is a way to

• create a distribution channel,
  
• build brand awareness and loyal customers,
  
• and quickly dominate the marketplace.

If we find the right franchise that is a great fit for you , it creates a path for you to achieve your lifestyle and financial goals. It is also a way to reduce risk. Working together, we define your short and long-term goals and define your exit strategy.

We create your business model that identifies what you want from the business. It may be challenge, recognition, prestige, more time with family, create independence, or build equity for financial milestones and retirement. Your business model also includes the skills you have that can be transferred in to provide the leadership that your team needs.

All of our franchise partners at our expos are ready to dive into this process with you. Join us, and start your adventure into franchising!