Steps 5 & 6 for starting a franchise

Sorry about being so long in getting this next post up. I am sometimes a negligent person.  I get busy, carried away, etc., and don’t do things.  I have been doing a lot of research in my time about places that will provide work to homebound people.  Work Inc., is one of them.  I will write about them as soon as I am done wit this franchise business.  So without further ado, here are steps 5 & 6

STEP 5We consider this step to be of monumental importance when judging the likelihood of finding happiness in a particular franchise: CALL EXISTING FRANCHISEES! Existing franchisees are your best source of information for finding out what really happens in a business on a day-to-day basis. You can ask what they like and dislike about the business, if they are happy with corporate support, and even get a feel for the type of earnings a franchise makes.  Gather a variety of opinions and you’ll get a clear picture of not only the franchise itself but of how you’d fit into the organization. That is why this step is so significant to your being able to make a definitive decision. STEP 6Your next step is to narrow down your choices. Okay, maybe it’s not all that easy. Let’s review what you’ve done so far: 

1. Made a list of your strengths, experiences and needs
2. While keeping an open mind, found some companies that look promising
3. Requested information
4. Reviewed the UFOC
5. Talked with existing franchisees

 Hopefully you’ve now found one or more companies that will meet your needs.  When you’ve made it this far, it’s time to go to Discovery Day (an on-site meeting with a franchisor). At this meeting you will be introduced to the top people in the home office and you may make a visit to a local franchisee, allowing you to ask even more questions and maybe to get some hands-on experience with the business.  Discovery Days are very interesting and exciting. When you leave, you will have a good understanding of the franchise. Don’t forget that this is a two-way street. They’ll be evaluating you as thoroughly as you evaluate their business.

Next two steps in starting a franchised business

Again I’ve been communicating with Lori, president of http://franchoice.com

  On my last installment I gave the first two steps in starting a franchise. Here are steps three and four exactly as relayed to me be Franchioce

 STEP 3Let’s say you’ve found an assortment of franchises that look promising. What do you do next?  Contact the franchisors and request information about their concepts. You will probably get call from someone in the franchise development department who will gauge your interest and advise you if the territory you seek is available. You will want to thoroughly view the web site information and any brochures and videos they send you.  Keep notes on your impressions. Are their materials professional and up-to-date? Are you treated courteously by a friendly and knowledgeable member of the corporate office? Are your questions and concerns answered to your satisfaction? What you see from the company at this time may be an indication of the type of support you would receive as a franchisee in their system.  STEP 4Your next step is to read the company’s UFOC (Uniform Franchise Offering Circular), a document every franchise in the United States is required to provide. From this you will learn the history of the company, the training and marketing programs, and what costs, royalties and fees you will be required to pay. Some franchisors also provide earnings claims in the UFOC that will help you estimate the potential of the business. The UFOC is full of information about the franchise and it clearly explains the responsibilities of the franchisee (you) and the franchisor. Your UFOC review and understanding is a very significant part of the research process. By paying attention to what you discover in a company’s UFOC, you can weed out franchises that just don’t measure up. Some warning signs of a franchise that is facing challenges are extensive litigation with franchisees or a closing rate of units greater than what’s being opened. 

Franchise opportinity affordable to the disabled

Let’s talk about franchising and business in general.  In spite of my hopes of helping people start home businesses I realize that, statistically 9 out of 10 new businesses in the US fail within the first year.  So take my advice with a grain of salt.  The must successful way to get into business is to buy an existing one, or a franchise.

Now consider the franchise.  There is such a thing as franchise opportinities affordable to us on SSDI, so it  may not be out of your grasp.  According to some statistics I found one source claims there is a 92% success rate (However consider that came from a franchise broker!)  Now I don’t know if that is true or not, but I do know that the success rates are indeed substantially higher for franchises.  Consider that they are already known and have the business model already worked out and the proper marketing techniques proven.

I talked with a chap named Danny at a franchise broker named http://franchoice.com

He assured me that there actually are franchises that are suited for low income people, and even for people homebound.  So cheer up!  After all, lots of us are disabled and there is no shortage of organizations out there that want us to succeed. 

Danny explained to me that there are seven steps in starting a franchise.  I will go over the first two this week and cover the rest in weeks to come.    

According to literature that Danny sent me which is published by Franchoice;

 STEP 1Before you start looking at franchises, take stock of that most important component of the equation – YOU.

• What skills, experience and interests do you have?
• Consider your past jobs and determine what you liked best and least about them; then make a list of your strengths and weaknesses.
• How much money can you invest and how much would you like to make?
• Are you comfortable managing others or would you prefer to work alone?
• Where do you want to work? Are you willing to relocate?
• What hours are you willing to work while the business ramps up and what lifestyle expectations do you have after the business is established?
• How do you feel about selling and the sales process?

 By starting with a list of what you have to offer and what you need from a business, you can create a strategy and model for your research.  STEP 2Keep an open mind. Whether (at Step 1) you use a resource like FranChoice or do your own franchise research via the Internet, it is best to keep all options open when considering a franchise. An inexperienced person may approach the process by thinking, “Well, I love donuts. How about a donut franchise?” And after spending days or weeks of research on Krispy Kreme, Dunkin’ Donuts and others, the individual may find he doesn’t have the required capital, the territory he wants is not available, and he’d have to give up weekends if owning a food franchise.  Another ineffective way to begin your franchise research is to lock yourself in to one or two concepts. If you think, “I’ll only look at ice cream and exercise franchises,” you may miss finding that that gem of a concept that would mesh perfectly with your needs.  With thousands of franchise companies available, keeping an open mind is the best strategy you can employ to get on the ground floor of that new, hot concept or to find something that will really take off in your market. 

That’s what Lori Kiser-Block is President of Franchoice wrote. She mentioned that there are two ways to research a franchise – through a broker or on the internet.  I found that Entrepreneur Magazine online lists hundreds if not thousands of them to browse through http://entrepreneur.com  If you’ve got some time on your hands that is a good place to start.  But…if your time is limited a broker is your best choice.  They can help you decide what is right for you, explain financial requirements.  Once I looked into a franchise.  The broker asked about my skills and interests and found four that fit were a good fit.  Unfortunately my wife is a tough cookie to deal with (though I do love her very much) and she wasn’t for getting into any of them at the time.   It is important to be supported by your family. I don’t remember the name of the broker but FranChoice is very similar.  Their link is http://franchioce.com Good luck.  I will go ever two more steps next week.

 

As I always say, our FaceBook app is nearly up and running and we’re looking for members.  It’s free to join once you’re a member of FaceBook which is also free to join.  http://apps.facebook.com/jobgenie