Franchise Business Consultant in Central Texas, West Texas and Rio Grande Valley

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3 Reasons Franchise Ownership is a Better Deal

When people think about owning their own small business, they tend to picture building it from the ground up: starting in their home office with just a desk and a dream, and slowly expanding and making a name for themselves over time.

While this can be very rewarding if you’re successful, there’s another way to go about it that has significant advantages. Instead of building your own business, you could invest in a franchise, which is a license to sell products or open a store in the name of a larger, already established company or brand.

But the question is: Why would you want to buy into a franchise instead of starting your own business from scratch?

Here are three reasons why franchise ownership is a smarter way to go.

  1. Profits Can Be Achieved Faster with Franchise Ownership

When you start a business from scratch, it takes an enormous amount of work to get everything set up – from creating a business plan and obtaining financing to choosing a name and building a website.

Then, you have to figure out which marketing techniques are going to work best and how the operations will run the most profitably. Many times, these efforts are trial and error, and all these processes take an enormous amount of time to develop. Sometimes, this learning curve can drag out for years and take so long that the business runs out of cash and must close.

With franchise ownership, most of these action items are already figured out which allows you to hit the road running. Franchisors test various processes and systems until they establish a profitable model. Then, all you have to do is follow their systems to achieve success.

While there is still some experimentation at the franchise ownership level to see what works best in your location, the large portion of work that is already done allows the franchisee to achieve higher profits much faster.

  1. You Are Not Alone in Franchise Ownership

With traditional entrepreneurship, many business owners find themselves in a lonely place, with no one to serve as a sounding board and provide advice as they struggle to learn the ropes.

They also have to find training solutions that fit their needs – or forgo training altogether due to the cost. Oftentimes, these training programs are costly and not the exact solution the business owner needs.

On the other hand, most franchisors provide support and have developed training programs to help the new owners learn the exact systems that will allow them to succeed.

In addition to providing training, franchisors can offer guidance and trouble shoot problems. On top of that, new franchisors have instant access to other franchise owners who have already tackled similar problems and can offer advice from an ownership perspective.

  1. It’s Easier to Obtain Financing

If you’re buying a franchise, it can be easier to obtain financing than if you’re starting a business from scratch. Why? The bankers believe that your chances of success are better, which makes you less of a risk. They know that the systems and training franchises have in place will help you succeed.

For those same reasons, there’s also a higher chance of getting a larger loan than what you could get starting a traditional business.

These are just three reasons why franchise ownership is a better deal, but there are many more. If you’d like to learn more reasons and get the ins and outs of franchise ownership, join us for one of our free webinars by clicking here, or sign up for a free consultation with one of our local franchise consultants. Just click “Get Started” at the top right side of this page.

 

 

 

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How to Buy a Franchise

Thinking about buying a franchise but not sure where to start? The first step is to gain an understanding of how the process works. To get started, read the 10 steps outlined in the article. If you prefer personalized assistance to walk through the entire process in depth, we have franchise consultants throughout Southwest Texas to help you for no charge. Just click the “Get Started” button at the top of this page to get in touch with us.

Step 1: Learn About Franchise Ownership Benefits & Challenges

Franchises offer many benefits compared to starting your own business from scratch, but they are not for everyone. Take some time to attend a seminar or workshop to learn about the differences so you can decide if it’s the right choice for you. To get started, sign up for a free workshop or webinar.

Step 2: Assess Your Personal Readiness

To begin your franchise journey, you and your family need to be prepared to invest a lot of time and emotional energy into starting the franchise. While the process to start a franchise can be much faster than starting a new business concept from scratch and many franchises eventually allow for a nice work-life balance, the launch process can take a lot of time up front. Are you and your family willing to make this sacrifice for a temporary period of time?

Step: 3 Assess Your Strengths

While the franchise you choose may be in a field you are experienced in, building a successful franchise is largely about making sales. So make sure you are comfortable with the marketing methods recommended by the franchisor. It could range from cold calling to networking in the community. Ask yourself if you are comfortable with these types of sales methods and can be good at them over the long term.

Also, if you or your family members plan to work in the franchise, assess your knowledge and management skills. Are you knowledgeable about how to successfully run the daily operations of that type of business?

Step 4: Assess Your Financial Readiness

Franchise costs can range from $500 to $1 million and up so you will need to be prepared with enough cash or financial backing to come up with a 20 percent down payment on a loan. On top of that, you should have access to capital to cover your living expenses for a year, business expenses for six months and if possible, some extra money to cover unexpected issues that come up. In addition, you may need to set aside a little more money for marketing up front to launch successfully.

Step 5: Determine Your Long-Term Financial and Personal Goals

It’s important when considering franchise ownership to first think about the end result you desire. Are you looking for an asset to eventually sell to pay for retirement? Or, would you prefer a business that provides residual income during retirement?  The answers to these types of questions will help you decide which types of franchise is best to meet your goals.

Step 6: Determine the Best Type of Franchise for You

Do you want a business that you’re actively involved in or one that you can let someone else manage? How much time do you want to invest in the franchise? Are you looking for personal fulfillment by serving others in your business or simply a profitable income that allows for the lifestyle you desire? The answers to these questions will help you decide which type of franchise is best for you.

Step 7: Find a Quality Franchise in the Industry You Choose

Thousands of franchise options have cropped up over the years and not all of them are operated in the best manner. Make sure you research the franchise thoroughly by doing online research, asking existing franchise owners about their experiences and talking to a knowledgeable franchise consultant who has your best interest in mind.

Step 8: Research the Market Where Your Franchise Will Be Located

Before you make a decision about the franchise to invest in, make sure to thoroughly research the market where your franchise will be located. Many franchises sell the rights to certain geographic areas. Most all franchises have competition so you will need to figure out how much business you will need to gain to have the income you desire in your market.

In addition, the demographics in these areas may be more or less favorable to your franchise concept. For example, rural areas can be more challenging than cities for making high volume sales. A city’s culture can influence success as well. For example, in Austin, Texas, fitness tends to be a high priority for residents. So a fitness-related franchise could tend to be more successful there.

Step 9: Do Your Due Diligence

When buying a business, there are many financial and legal details to research and review. Investing in a franchise is similar but has a few additional considerations. For example, the franchisor is legally required to provide you with a Franchise Disclosure Document or FDD. Make sure to review the FDD carefully with a franchise consultant, CPA and attorney to make sure you understand it well. Also, be sure to talk with existing franchise owners to get a realistic idea of what it’s like to run that particular franchise.

Step 9: Sign the Papers!

After you have thoroughly researched the franchise opportunity, you will be ready to review and sign the contract. But first, be sure to have a franchise attorney review the final contract to make sure it’s in your best interest prior to signing it.

Step 10: Follow the Franchisors Training and Guidelines

One of the advantages of owning a franchise is that its founders have already experimented with many different operations and marketing techniques and have come up with a winning formula. While there is some opportunity to try your own techniques with certain franchises, sticking with the franchisors recommendations will give you best chance for success.

If you would like to explore each of these topics in more depth for your situation, FranNet Texas Southwest offers no-cost consulting in Texas cities including Austin, San Antonio, Waco, El Paso, McAllen, Brownville and Laredo. Just click the “Get Started” button at the top of this page to schedule your free consultation.

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How to Differentiate a Good Franchise Consultant From the Rest

When we meet people and tell them about what we do, it is not uncommon for them to tell us that they have never heard of a franchise consultant service like ours before. They sometimes ask why someone would want our help.

If they have heard about our unique niche in franchising, it may be because they met someone else who does something similar to what we do. In that case, they may be asking us what makes us different.

So the answer to the question “why would someone want the help of a franchise consultant” is that we have been doing this a long time….14 years in Texas to be exact! We also know the local market and availability of territory for many franchises, because we work hand-in-hand with franchisors. In addition, we have the local resources people need to get the business off the ground, like attorneys, bankers and CPAs. As a result, most of our business comes from local referrals.

There are other franchise consultants out there but one of our unique differentiators is that we meet with our clients face-to-face in one of our offices. We know getting into business is a big decision. It deserves proper guidance and help as well as a personal relationship. Our service definitely is not a “drive-up” service like some franchise consultants have on the internet. People should be wary of “franchise consultants” they meet that way who offer up franchise options after only speaking to you for just a few minutes. Unfortunately, sometimes they are just trying to push a few concepts they know.

Finding the right franchise fit takes time, and we spend a lot of time with our clients, usually over the course of a few months. Once our clients are in business, we enjoy seeing them grow and using their goods and services in our local market.

Bottom line – in working with a franchise consultant, you have to work with someone you trust who is working with your best interest in mind. And recognize that acting in your best interest may lead to your consultant telling you that maybe now isn’t the time or perhaps franchise ownership isn’t right for you.

FranNet has been around over 30 years providing support to our consultants and clients. We have a great reputation in franchising, because we are focused on our clients…and then finding the right franchise fit. In central, south and west Texas, we have a track record of helping hundreds of successful owners and twelve “Rookies of the Year,” meaning fastest start to their businesses.

Our franchise consultants have varied backgrounds including experience as franchisees, corporate executives, MBAs and military. Some can also provide bilingual help. To sum it up, we have the right consultant here for you! And the best news is that we offer our services at no cost to you.

If you would like to schedule a free consultation, fill out the box to the right and we will contact you shortly.

 

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5 “Must Have” Skills to be a Successful Franchise Owner

If you’re thinking about investing in a franchise, the first step is assessing whether or not you would be a successful franchise owner.

Many people are excited about the idea of franchise ownership and eager to find the most successful franchise but there many things that must be considered prior to making that decision.

According to FranNet Texas Southwest owner, Merri Cronk, the skills it takes to make a franchise successful are different from what many people think. With that in mind, here are the top five skills a person must have to be a successful franchise owner.

Marketing Skills

Knowing how to sell your services and products and/or being willing to learn and execute sales systems as laid out by the franchisor is critical no matter how educated or experienced you are.

“One of the biggest challenges franchise owners face is business development,” Cronk explains. “It is best to know your marketing and sales strengths and focus on considering franchises that put those strengths to good use.”

Business Management Skills

To be successful, running a business takes a lot of general business knowledge and abilities in areas such as accounting, employee relations, time management and customer service.

“Even if you are really good at your profession or highly knowledgeable about an industry, these leverageable business skills are even more important to success,” says Cronk.

A Business Owner Mentality

Seeing yourself as an owner rather than an employee is very important to becoming a successful franchise owner. A business owner must focus on working on the business rather than in it. It is important to be able to delegate and manage instead of thinking of performing the function of the business.

“Many people want to work in their previous profession because they enjoy that type of work or know how to be successful as a worker in that industry,” says Cronk. “However, this can cause them to get too caught up in the details of the work and lack the time and ability to oversee the whole business. It is important to see the big picture and make the decisions necessary for running a successful franchise.”

Family Support

Because owning a business requires a lot of commitment and time, it’s important that your family is supportive.

“While buying certain types of franchises can lead to a family-friendly lifestyle, it can take some extra time and effort up front that will impact your family to an extent,” says Cronk. “To be successful, it’s important to make sure your family understands this and supports the endeavor.”

Ability to Follow a System

Franchises develop well-honed systems that have been proven to be successful. So if you are good at following rules and systems, franchise ownership is an ideal fit for you and your chances of success will be much greater.

To sum it up, being a franchise owner isn’t for everyone so it’s better to do a serious self-assessment prior to taking the plunge.

If you would like to further assess your skills in relation to franchise ownership, the franchise consultants at FranNet would be happy to provide a no-cost consultation. To book an appointment, click the “Get Started” button on the upper right corner of this page or give us at a call at 512-329-2613.

Sign Up for a Free Webinar!

 

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FranNet Consultant Merri Cronk Helps Retired Pilot Find a Second Career

Franchise Consultant Merri Cronk was excited to recently help a retired Air Force pilot find a second career with the franchise, Lawn Doctor.  Rich and his wife Patsy had looked into a fast food restaurant but when that fell through, the couple contacted Merri, who showed them four quality franchises that would achieved their personal goals in addition to their financial goals. The model has worked well for the couple. Today, the business model has allowed them to enjoy a semi-retired lifestyle while still enjoying the financial rewards of business ownership. To learn more about their journey, read this inspirational story.

Click here to read the story.

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