Ryan Galiotto

Posts Tagged ‘entrepreneurs’

Youre in the market to buy a franchise, and youve found a concept that you like. Youve read the website, reviewed the marketing materials and examined the Franchise Disclosure Document. In addition, youve talked to the franchisor a number of times. While your spouse may not be completely on board, youve kept him or her in the loop. Its looking pretty good so far.

Advice that Helps If you are serious about being a franchise owner, the next step would be to seek advice from business professionals who have practical experience in franchising, in the industry that you are considering and better yet, in the franchise you are considering. The franchisees are a wonderful resource and in most franchise systems they are open and willing to help. An accountant that has experience in this industry and knows the norms regarding profit would be very helpful. 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 reviewing 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 lets be realistic, Great Aunt Edna loves you but shes been out of the working world for 25 years - she does not have an email address and still enjoys watching reruns of Bonanza. There is very little she can do to help you as you seek out more franchise information. There is a lot, however, that she can do to disorient you. Be careful.

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. Theres nothing wrong with that, but is he able to provide you much guidance? Probably not.

Many people have your best interests in mind. But well-meaning advice from people who simply dont know business ownership, the industry you are looking at or have practical franchise information can be incredibly disorienting.

Advice that Matters Spouses commonly balance each other in temperament. If you are a go-getter, theres a high probability that your spouse is more cautious. She will remind you that the paycheck is good, and will worry about what will happen if you fail. These are critical conversations to have. But you want to be prepared.

First, gather all the facts and be sure you have a clear idea of what it requires to be successful in the business. How long does it generally take to break even and what level of income would a successful business create. Learn 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 normally made as a partnership. If you and your spouse decide not to move forward with a business opportunity that you love, wont you feel better knowing youve 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 combat those perceptions.

1. Dont most small businesses fail? Several long-term surveys have shown that, contrary to independent start-ups, franchises have a strong success rate. Owning a franchise (vs. starting an independent business) gives you a tremendous 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.

2. Why dont you just change jobs? Any book you read on wealth creation will tell you that very few people get wealthy by working for other people. Wealth is normally created in three ways ” the Stock Market (less than 10% of millionaires created 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 are looking to create wealth and a better future for you and your family, business ownership is the best path.

3. Perhaps you should think about it some more. You should not make a decision of this magnitude rushing but you do not want to postpone either. Do your homework, ask all the questions and take notes - then make a yes or no decision in a timely and businesslike fashion. One characteristic of successful business people is their ability to make good business decisions with incomplete information. If you find yourself paralyzed, be careful, business ownership may not be for you. Yes or no, the most important thing is your ability and willingness to make a decisive decision and move forward.

4. What if you fail? You want to enter business ownership with the knowledge that you may fail. Naturally you could also lose your job. There are no guarantees with anything that we do in life. Nobody can assure success. All you are able to do is stack the deck in your favor.

If you know that most franchisees in your chosen system are pleased with their success; that you have similar skill set to successful franchisees; that you are adequately capitalized; that you trust and can follow the franchisors system; and that you are willing to work hard, you are on your way to being confident that you can succeed.

Before you begin to share franchise information with your friends and family make sure you have the facts straight. Educate them. Help them join your team. And if they cant be on your team, maybe thats OK. Everyone likes to give advice, and naturally, everyone gives advice from their point of view ” their reference base. As long as you know that, you can appreciate their concern, and not let it overly influence you.

Statistically speaking, its not a good idea to start a business. Depending on which study you read, approximately 65% of new businesses fail within the first year, and another 6% dont make it past their third year. So, do we entrepreneurs have much hope?

There are many obvious reasons one would want to go into business for themselves: * No cap on income * Set your own hours (more time for fun and family) * Work to make yourself rich rather than someone else * Do something you feel passionate about * Control of your own time and finances

And, those dreams of a better life are enough to make millions of people a year try their hand at running their own business. I myself have tried several. I had marginal success with most and found that I was working more hours than it was worth. Perhaps if I had tried a little longer, it would have panned out, but the risk of putting more money and time into something that may not work made me bow out within the first two years.

So, what are your best options? If you are a creative mind you can think of a niche in the market that hasnt been tapped, and find a place and the finances to succeed. If you dont have any original ideas or great amounts of money, a home business might be an option for you. Lets look at the statistics for home businesses in this country.

*The number of home businesses lasting over a three year period is about 70% -much better than other business ventures. * The average income earned by home business owners is $63,000 a year. Not bad considering the average household income in America is $47,0000. * 20% of home businesses, according to Money magazine, had a yearly gross income of $100,000-$500,000 * 89% of people with household incomes over $80,000 have a home office.

If you decide to venture into a home based business that rewards you for bringing others on board, you will be glad to know that an estimated 9 million people will earn some sort of income from home. Every 11 seconds someone starts a home based business. With internet capabilities, it is easier than ever to market to the masses. And what about the economy? Our poor economy has actually helped the home based business industry because people are searching for income avenues and job security.

As for the environment, it is estimated that this year workers staying off the roads will reduce CO2 emissions by at least 18 million kg.

So, how does one go about finding a legitimate home business? Chances are, someone you know has already talked to you about one. The online information highway is full of them, but who can you trust? Here are a few guidelines:

* You must find a company whose products you believe in. * Although Im not against MLMs, direct selling of products with a decent commission appeals to me. * Find out if there are any third party endorsements of the company. Dont just take someones work for it. * Consider the start up costs as compared to how long it will take you to earn a significant income. Some companies offer very low start up costs but you have to work for months or even years before it starts to really generate income. * Investigate hidden costs (advertising, monthly dues, having to buy a certain amount of product yourself) * How much time are you REALLY going to have to put in to make your income goal? Ask some new people, not the seasoned 6 figure earners who are hiring their dirty work out. * Be leery of companies that want you to talk to your family and friends about your new business to generate potential customers. This almost never works. People today are bombarded with new opportunities, and its hard for most people to talk to others they know without coming across as a user.

This being said, there are many great opportunities available if you do your due diligence. Home businesses are the wave of the future, and can help solve many of our problems. Just study before you leap. From one big thinker to another, I truly wish you success!