Uh, what??  At first glance, the title of this week’s blog might seem like a strange thing for FranNet to advocate. But there’s a deeper meaning in this attention-getting headline that includes lessons we want all of our potential clients to be aware of before investigating a franchise opportunity. Not everyone is cut out to own or run a business. Let’s explain what exactly we mean by this….

Everyone is familiar with the American Dream concept. It holds that if you work hard enough, have your success, and pay your dues, you can achieve anything that you put your mind to. This we understand. We understand that people from all walks of life have dreams of starting their own business and being their own boss. But the simple reality is that not everyone can make the grade. And our consultation process is specifically designed to indicate the difference.

We don’t want to see failures. Which is why at FranNet, we don’t just agree that you’re fully prepared to run out and start a business of your own without extremely careful consideration. It does us no good if this first path is chosen, only to close up shop shortly thereafter. That’s a lot of wasted time, effort and most importantly—money. The better path is to begin on a journey of extreme self-discovery through due diligence. Simply put, if you want to own a business and be successful, you’re going to have to help us do a lot of homework with you.  (more…)

This week’s blog is going to delve into territory reserved for existing franchisees who desire a continuing education for the small business owner. We feel it is also important to maintain and nurture your franchise after you’ve set up a successful business. There are many types of entrepreneurs who would deem themselves fit to run a business. But there is also a good portion of owners who feel they could be doing a better job.

That’s where continuing education for small business owners enters the picture. Several professions, such as careers in medicine, law and accounting, actually require continuing education classes—some of which are on an annual basis. It’s simply a way of maintaining a sharp acumen to your particular skill set.

Seminars are a popular choice because of the varied information presented, as well as the networking possibilities. An excellent resource website for finding applicable small business seminars and workshops can be found on the U.S. Small Business Administration Events Page. Here, you have the ability to refine a search by subject and zip code, so that you can find something that appeals to your franchise, and close by.  (more…)

You’re considering going into business for yourself. Perhaps you’re looking into a franchise, but you’re not sure you’re ready to start a brand new franchise outlet. Even with all the support and systems in place to aid new franchisees, the thought of tackling a brand new franchise outlet can be intimidating to some. An attractive option for those individuals may be a resale franchise opportunity.

Franchises all over the country will routinely be resold by the previous franchisee for a variety of reasons. These outlets may be a little more “ready-made” for an immediate business opportunity, yet all businesses aren’t created equal. Also, you may not know which franchises are for sale.  Many times, the franchisee must work back through their franchisor in a resale opportunity.  You need to find the right guidance and investigate, there’s no substitute for performing your proper due diligence throughout the business investigation process.

Consider the following:

Finances

Look into the historical track record for the finances of the business. Ask to see balance sheets, tax returns and profit-and-loss statements. Understand from the franchisor how these numbers stack up against their other franchisees’ numbers in similar markets. Also, make sure you’re able to properly value the company based on that historical data. You may enlist the help of a knowledgeable CPA who can help determine the value of the business.  (more…)