Sunday, November 16, 2014

Reasons Why You Should NOT Buy a Franchise - From a Franchise Coach

You read the headline right, I’m going to tell you why under what circumstances you should not buy into a franchised business concept. Why am I telling you this? For some people, owning a business (franchise or otherwise) is probably not the right life choice. For those born to be entrepreneurs, owning a franchise business is probably not the right choice. But for some, franchising can be the perfect choice for a new career, a different investment, or both. Here are some good reasons NOT to buy a franchise (or maybe any business):
  • YOU NEED AN IMMEDIATE PAYCHECK
    Rarely does a new business start cash flowing on Day One. You need to be realistic in terms of projecting when you’ll be able to draw a paycheck, and make sure you have adequate reserves, or another source of household income to sustain you and your family for at least 6-12 months. 
  • YOU’LL BE RISKING EVERY PENNY YOU HAVE TO LAUNCH THE BUSINESS 
    The pressure and sleepless nights will not only be detrimental to your health, but can also lead to poor judgement and decision-making which will detract from your likelihood of being successful. 
  • YOU THRIVE ON 100% CONTROL 
    The key to success in franchising is consistency and adherence to a proven system. Your customers know what they are getting before they walk into the door, whether it’s a product or service. It doesn’t matter who owns the McDonald’s, you know what the Big Mac tastes looks and tastes like. You are buying a name brand and an operating model. You cannot change that brand. “Oh, the Big Mac isn’t selling well, but let me call it the Mega Mac – that will change things!” There may be certain vendors, supplies and programs that you have to stick with as part of the franchising agreement. If you think you have invented a superior product and/or business system, then perhaps you should consider starting a business from scratch, as opposed to joining a franchise system. 
  • YOU ARE LOOKING FOR A LIQUID INVESTMENT 
    You are making a commitment and a significant investment when buying into a franchised business concept. This cannot be liquidated on the spot, should the need arise. Remember, just like most businesses, it may take you time to make back your initial investment or cash out if you decide to sell. 
  • YOU DON’T HAVE A COMPELLING REASON FOR BEING IN BUSINESS FOR YOURSELF 
    It’s not enough that you’d think it’d be fun to “Be the Boss” or you have a passion for a particular product or service. Business ownership is a huge commitment, and should only by attempted by those that have the transferable skills necessary to be successful, and have sound reasoning for taking the risk, such as a resolve to never working for someone else again, or not wanting to have your money subject to the roller coaster stock market. 
At FranNet, we believe that business ownership, whether through franchising or otherwise, only makes sense for the select few. That being said, we’ve seen lots of folks that have what it takes, including a compelling reason for being in business, achieve freedom, independence and fulfillment by selecting and managing a franchise that FITS their goals, transferable skills, preferences and lifestyle requirements.

If you’re wondering if you could be one of the “select few”, take a look at our upcoming FREE events and webinars listed on the right. You can also contact me at 616-891-1374 or bbetser@frannet.com to discuss your unique situation. We’re here to help you decide whether franchising and/or business ownership might be for you, and if so, how to go about finding the RIGHT fit. Don’t forget to also visit frannet.com/bbetser.

Sunday, November 9, 2014

The First Franchise

Franchises have become a staple of the American economy. Just think of how many franchises you come across on a daily basis. Even if you don’t leave your house for a day, you will see advertisements for dozens of franchises on your television.
So, where did the first franchise begin? What was it?
Have you heard of the Singer Sewing Machine?
Isaac Singer didn’t invent the sewing machine. But he developed a simplistic sewing machine that could be adapted to home use – getting a patent for his invention in 1851. He even sold his machines using an installment payment basis that allowed more people to purchase his machines.
The Singer Sewing Machine sales skyrocketed over 500% during a four-year period. Isaac was able to start mass-producing his product with interchangeable parts. But, how could Singer’s company repair these machines across the United States?
The solution to this problem gave rise to the first franchise system. Singer started by licensing out servicing and repairs to local merchants around the country. Later, those merchants were allowed to become regional salespeople for the machines as well. These rights were all conveyed via contracts.
Franchises are Proven Business Systems
Singer’s franchising system was a success because his sewing machine was a quality, differentiated product AND he developed an efficient, effective system for selling and servicing it. This is the biggest benefit of franchising; you are using a business system that has a track record of producing successful results. There are no guarantees in business ownership and entrepreneurship, but with research, due diligence, and working a proven system, you can give yourself a distinct advantage.
Another way to give yourself an advantage? FranNet. Our exclusive franchise matchmaking system and research plan helps to pair you with a business concept that best fits your transferable skills, personality, budget and lifestyle requirements. We offer choices in many different categories, to help you discover options you may not even be aware of, yet may provide a great fit for your unique profile!
Franchising as a Career, an Investment, or Both
Join me for my upcoming FREE seminar, "Business Ownership Options." This event takes place on Wednesday, November 19 in Grand Rapids, MI. Learn franchising basics, including the array of categories and investment levels available (starting at around $50k), and how to go about defining your own personal vision, matching that up with viable choices, and conducting proper due diligence to make sure you are selecting the RIGHT fit for YOU!
For more information and to RSVP, please visit frannet.com/bbetser.
And, as always, all of my services and consultations are FREE! Please contact me at 616-891-1374 or bbetser@frannet.com.

Tuesday, October 14, 2014

Five W’s and One H You Need to Know This Week


WHO:  You, the future entrepreneur.  Six franchisors to expand in the West Michigan area.  A financial expert to help discuss funding options.  Me (Brigitte Betser), your local FranNet consultant, to provide my free consulting services to help you get started on the path of success.

WHAT:  Meet the Franchisors.  A free event showcasing franchise options ready to explode in Western Michigan – all they need is a determined individual or individuals ready to lead their own business.

WHERE:  GVSU Bicycle Factory – 201 Front St. in Grand Rapids, MI

WHEN:  October 16, 2014 at 3pm

WHY:  Because you’re ready to be your own boss.  You want an investment in something you can believe in – YOURSELF.  You are a leader.  You are making things happen.



Thursday, September 25, 2014

Building Blocks to Franchise Success

“Do I have what it takes to succeed in business?”  If you have never owned a business before, it surely is a question that is on your mind.  Working with hundreds of prospective business owners, here are the three fundamental elements of success that FranNet has defined.  The way to maximize your chances of success is to be as close to a ten as possible in each element.

Element #1 - Drive Determination
How strong is your desire to own a franchise?

Element #2 - Business System
How good is the franchise system offered by the franchisor?

Element #3 - Fit
Will the business maximize my strengths, passions and experiences?

After examining a franchise, multiply the three scores together and come up with a total.  If you can score a 10 in all three elements, you are batting 1000!  On the other hand, a low score in any element may yield much lower results.  Try plugging a 2 in any of the boxes and do the math.


Desire for Greater Independence
While it might sound obvious to say it, the desire to own a business is perhaps the most important element.  Other words that come to mind that describe this element are drive, the desire for greater flexibility, control of one’s future, financial success, independence, etc.  Business ownership can be very rewarding, but it will not be easy.  Someone who is satisfied working for someone else will usually find the challenges of business ownership too great to ever attempt.

On the other hand, there are many stories of people who succeed against all odds because they have a strong desire to have their own business.  So ask yourself this question: On a scale of one to ten, with ten being high, how do I rate my desire for greater independence?  The higher your number, the better your odds of success.

Business System
A business system is the total package for running the business: location, marketing, products, sales process, management and training.  It is even more important than having a great product!

Franchises are all about a business system.  Franchises tend to take common products (hamburgers, oil changes, etc.) and business an effective business system around them.  With the very best systems being a ton, you want to see that the franchises you select have a great business system.

Identifying a great system is important, but a word of caution is in order.  Prospective franchise owners may be tempted to put all their emphasis on the quality of the system without considering the third and equally important element called “fit.”

Fit
No matter how good the business system is, the business must be one that “fits” you.  If must be a business that builds on your strengths and talents.  Every franchise system has successful operators and less than successful operators.  The difference is the individual.  A business system does not run itself.  Identifying a business that fits your profile, what we call your business model, is just as important as the quality of the system.

As you probably guessed, the goal is to find the business that is as close to a ten in how it fits you.

Two FREE Events to Build Your Knowledge About Franchising
I am holding two events to help increase your knowledge about franchising.  If you have the drive to start your own business – attending these two events will help you learn about all of the different options available to start your own business, and how franchising can point you down the path to success.

September 30, 2014 – Business Ownership Options (Grand Rapids, MI)
Is franchising the path for achieving your goals?  Let me bust some common franchising myths, enlighten you on the wide range of categories and investment levels available, different entry strategies, and how to find the right fit for you.
MORE INFO         REGISTER

October 16, 2014 – Meet the Franchisors (Grand Rapids, MI)
Different franchisors looking to expand in Michigan will be here and are ready to talk to you!  After a brief introduction to the world of franchising, each franchisor will overview their business model and what they look for in a successful owner, tips of franchising funding, and Q & A.  There will be time for one-on-one time with any or all of the franchisors present!
MORE INFO REGISTER


Sunday, September 14, 2014

MICHIGAN FRANCHISE FORUM – Meet the Franchisors Expanding in Michigan


MICHIGAN FRANCHISE FORUM:  Meet the Franchisors Expanding in Michigan

October 16, 2014 at 3pm - Grand Rapids, MI
GVSU Bicycle Factory:  201 Front St.

The Forum was launched in early 2008 and continues to be presented at least bi-annually. It is offered at NO CHARGE to the general public, but REGISTRATION is REQUIRED.

This is your chance to learn about six premier franchise companies that are poised for continued expansion in our state, and to meet their franchise development executives! Tips on franchise due diligence will also be presented, and a franchise financing expert will discuss your funding options.

This free, "must attend" event is for anyone who wants to:
  • Leave Corporate Life Behind
  • Be Your Own Boss
  • Enjoy Career Independence
  • Build Long-Term Equity
  • Launch a Recession-Resistant Business
  • Hear About Financing Options
  • Diversify Your Investment Portfolio
  • Create Additional Income Opportunity
Opportunities exist in Grand Rapids, Kalamazoo, The Lakeshore, Lansing and surrounding areas with initial investments starting at $70,000.

Categories may include:
  • Light Manufacturing
  • Home and Office Decor
  • Retail/Commercial Distribution & Recycling
  • Professional Staffing
  • Residential/Commercial Building Services
  • MASTER Franchising
The Michigan Franchise Forum brings aspiring entrepreneurs together with the local franchise experts of FranNet AND franchise development executives from an array of premier concepts eager to expand their presence in Michigan.

The program includes:
  • A brief introduction to the world of franchising, and a safer approach to franchise due diligence and selection
  • Updates on the “State of Franchising” here in Michigan
  • A brief presentation by each Franchisor, including an overview of their business model and what they look for in a successful franchise owner
  • Tips on franchise funding
  • An opportunity for Q & A, and optional one-on-one time with any or all of the Franchisors 
If you’re thinking about making a change and becoming your own boss, or looking for a better investment opportunity, this event is for YOU!


For more information and to RSVP, please visit frannet.com/bbetser or contact me directly at 616-891-1374 or bbetser@frannet.com.

Sunday, September 7, 2014

Let's Start At The End, You Just Retired


Its many years in the future, and you have just officially retired.  You just finished life as a franchise owner, and now you are ready to enjoy rest and relaxation.

Did you enjoy working for yourself?
Its a sense of liberation being your own boss.  Your rules.  You didn't have to worry about an immediate supervisor and if they were satisfied with your work.  You didn't have to worry about your supervisors boss who you have maybe seen five times in five years.  I won't even bring up the corporate suits you have never met that can change your life by a simple order down the corporate ladder.

Did you take on the world and succeed?
You took challenges head on.  You didn't break.  The business you built still stands.  In fact, you may have opened up new locations.  You created.  In fact, you may have created positions for your family and truly created a business legacy.

Did you retire in a much better financial position?
Investments are never guaranteed.  But, savings accounts lose money if you consider inflation.  Stocks go up and stocks go down.  You invested in something
YOU control, you invested in yourself.  You may have had to work hard.  You were successful, you made it happen!




Now lets time travel from the present to retirement as noted above?  What options can you consider to find retirement by modes noted above?
Franchise ownership isnt something that most entrepreneurs immediately think of, but truly is a viable option to consider.  Just imagine, someone elses successful idea and YOU GET TO USE IT.  You dont have to worry about creating a product, service or brand.  You are being handed the ball run with it!

Start the process of finding your vehicle to retirement today, join me for one of these two free events:
·       September 30:  Business Ownership Options
o   This free seminar introduces you to the world of franchising, including entry strategies, financing, categories, and more.  Learn if franchising could be a path for achieving your goals, and if so, how to go about finding the right fit for you!
o   9:30am in Grand Rapids, MI
·       October 16:  SIGNATURE EVENT Michigan Franchise Forum Meet the Franchisors Expanding in Michigan
o   Learn about several premier franchise companies that are poised for continued expansion in our state and meet their franchise development executives. 
o   This event includes presentations on franchise due diligence, financing, the “State of Franchising,” Q & A sessions, and more!
o   3:30pm in Grand Rapids, MI

If you have any questions about franchising or one of my upcoming events, please contact me at 616-891-1374 or bbetser@frannet.com.