The Accidental Ambush, Part II
Don’t let Friends and Family Guide You to the Wrong Decision
by Rick Bisio – Franchise Consultant & Author of the Franchise Book –The Educated Franchisee
You’re in the market to buy a franchise, and you’ve discovered a concept that you like. You’ve read the website, went over the marketing materials and analyzed the Franchise Disclosure Document. In addition, you’ve talked to the franchisor a number of times. Although your spouse may not be totally on board, you’ve kept him or her in the loop. It’s sounding pretty good so far.
Advice that Helps
If you are serious about becoming a franchise owner, the next step would be to seek advice from business professionals who own practical experience in franchising, in the industry that you are considering and better yet, in the franchise you are looking at. The franchisees are a tremendous resource and in most franchise systems they are open and inclined to help. An accountant that has experience in this industry and knows the norms concerning profit would be very useful. A franchise consultant that has years of experience in franchising can provide you with a balanced point of view regarding the opportunity. Finally, a lawyer that specializes in franchising can be helpful in going over the structure of the relationship.
Advice that Disorients
Far too often, potential franchisees get so excited about the idea of being a business owner that before they fully see the risks and rewards, they start reciting their loosely defined dreams to anyone who will listen. They talk about their business idea with their drinking buddies and even with Great Aunt Edna. Now let’s be realistic, Great Aunt Edna loves you but she’s been out of the working world for 25 years – she does not have an email address and still loves watching reruns of Bonanza. There is very little she can do to assist you as you search for more franchise information. There is a lot, however, that she can do to disorient you. Be cautious.
How about your buddy who works for the U. S. Postal Service? His lifetime has been spent avoiding risk, maximizing salary, establishing his pension and surviving until retirement. There’s nothing incorrect with that, but is he qualified to offer you much guidance? Probably not.
Many people have your best interests in mind. But well-meaning advice from people who simply don’t know business ownership, the industry you are looking at or have practical franchise information can be incredibly disorienting.
Advice that Matters
Spouses normally balance each other in temperament. If you are a go-getter, there’s a high probability that your spouse is more cautious. S/he will remind you that the paycheck is good, and will have concerns about what will happen if you fail. These are decisive conversations to have. But you want to be ready.
First, collect all the facts and make certain you have a clear idea of what it involves to be successful in the business. How long does it commonly take to break even and what level of income would a successful business make. Find out everything you can and involve your spouse every step of the way. If you spouse has a concern, listen to the concern and get as much information on the topic as you can to share with your spouse. These decisions are generally made as a partnership. If you and your spouse decide not to move forward with a business opportunity that you love, won’t you feel better knowing you’ve given him or her all the facts? At least then you know you gave it your best shot.
Here are a few of the most frequent objections you are likely to hear, as well as some facts to oppose those perceptions.
- Don’t most small businesses fail?
Several long-term studies have established that, unlike independent start-ups, franchises have a solid success rate. Owning a franchise (vs. starting an independent business) gives you a fantastic head start, including:
- A proven operating system that can predictably create success.
- National marketing programs
- Group buying power
- Training and on-going support
- Manuals, procedures, job descriptions, accounting help, and so much more.
To collect more information on this matter go to the Download section of www.educatedfranchisee.com <http://www.educatedfranchisee.com>. There are a a few reputable surveys that will give you all the franchise information you wish in regard to success rates.
- Why don’t you just change jobs?
Any book you read on wealth creation will tell you that very few people become wealthy by working for other people. Wealth is typically made in three ways – the Stock Market (less than 10% of millionaires made their wealth by investing in the stock market), Real Estate Investment ( 10 – 20% of millionaires created their wealth by investing in real estate), and Business Ownership (70 – 80 % of millionaires created their wealth by building businesses).
Getting another job will not move you to the next level. If you want to create wealth and a better future for you and your family, business ownership represents the best path. Chapter 5 of The Educated Franchisee can assist you learn more about how business ownership results to wealth creation.
- Perhaps you should think about it some more.
You should not make a decision of this magnitude in a hurry but you do not want to delay either. Do your homework, ask all the questions and take notes – then make a yes or no decision in a timely and businesslike manner. One characteristic of successful business people is their ability to make good business decisions with incomplete information. If you find yourself paralyzed, be cautious, business ownership might not be for you. Yes or no, the most crucial thing is your ability and willingness to make a decisive decision and act forward.
- What if you fail?
You want to get into business ownership with the knowledge that you may fail. Of course you could also lose your job. There are no guarantees with anything that we do in life. Nobody can guarantee success. All you can do is stack the deck in your favor.
If you know that most franchisees in your chosen system are glad with their success; that you have similar skill set to successful franchisees; that you are adequately capitalized; that you trust and can follow the franchisor’s system; and that you are willing to work hard, you are on your way to being convinced that you can succeed.
Before you start to share franchise information with your friends and family be sure you have the facts correct. Educate them. Help them join your team. And if they can’t be on your team, perhaps that’s OK. Everyone likes to give advice, and of course, everyone gives advice from their point of view – their reference base. As long as you recognize that, you can appreciate their concern, and not allow it excessively influence you.
The Educated Franchisee is dedicated to franchise education through the sharing of franchise information.
Our objective is –‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.”
To get more franchise information about how to stack the deck in your favor you can –