Choosing_the_Right_Business

Choosing the Right Choosing the Right BusinessBusiness

A seminar for anyone A seminar for anyone exploring business exploring business

ownershipownership


Desired OutcomeDesired Outcome Learn:Learn:

• Why people consider making changesWhy people consider making changes• About the available optionsAbout the available options• About the power of franchisingAbout the power of franchising• How to choose an optionHow to choose an option

Have Fun!Have Fun!

Choosing the Right Choosing the Right BusinessBusinessAgendaAgenda

Crossroads & OptionsCrossroads & OptionsExploring Business OwnershipExploring Business Ownership

A Recommended ApproachA Recommended ApproachQuestion & AnswerQuestion & Answer

Crossroads & OptionsCrossroads & OptionsAt A Crossroads - Push At A Crossroads - Push

FactorsFactors• Corporate downsizingCorporate downsizing• Widespread job insecurityWidespread job insecurity• Job dissatisfaction, burnoutJob dissatisfaction, burnout• Limited earning potentialLimited earning potential

Crossroads & OptionsCrossroads & OptionsAt A Crossroads - Pull At A Crossroads - Pull

FactorsFactors• Freedom/flexibility/destiny controlFreedom/flexibility/destiny control

– activityactivity– financialfinancial

• Growing economyGrowing economy• Increasing “working years”Increasing “working years”

Crossroads & OptionsCrossroads & OptionsAt A Crossroads - Pull FactorsAt A Crossroads - Pull Factors

• Franchising appealFranchising appeal– Established track recordEstablished track record– Interdependent relationshipInterdependent relationship– Proven systemProven system– Access to capitalAccess to capital– No previous experience requiredNo previous experience required– Independence & flexibilityIndependence & flexibility

Crossroads & OptionsCrossroads & OptionsYou can’t make a truly informed decision You can’t make a truly informed decision

until you know until you know allall your options! your options!

Crossroads & OptionsCrossroads & OptionsOptionsOptions

• JobJob– Corporate America Job MarketCorporate America Job Market– Professional TemporaryProfessional Temporary– ConsultingConsulting

• Business OwnershipBusiness Ownership– Start a BusinessStart a Business– Purchase a BusinessPurchase a Business– FranchisingFranchising

Crossroads & OptionsCrossroads & OptionsDefinition of Definition of

insanity:insanity:Doing the same things Doing the same things over and over again and over and over again and

expecting a different expecting a different resultresult

Examples?Examples?

Crossroads & OptionsCrossroads & Options

01020304050607080 75% Of People

Have the Dream of Owning A Business.Only 5% Make It Happen.Why?

Crossroads & OptionsCrossroads & Options Corporate America Job MarketCorporate America Job Market

• Recruiters, classified ads, networking, Recruiters, classified ads, networking, friends & familyfriends & family

• Required experience is more specialized Required experience is more specialized and increasingand increasing

• Downsizing is a fact of corporate life (3.9 Downsizing is a fact of corporate life (3.9 million jobs eliminated in 80’s & 90’s)million jobs eliminated in 80’s & 90’s)

• Definition of insanityDefinition of insanity

Crossroads & OptionsCrossroads & Options Characteristics of FranchisingCharacteristics of Franchising

• Proven business systemProven business system• Use of trademark, name, etc.Use of trademark, name, etc.• Interdependent relationship Interdependent relationship • Franchise feeFranchise fee• Total investmentTotal investment• Royalty payments Royalty payments • Advertising feesAdvertising fees• UFOC (Uniform Franchise Offering Circular)UFOC (Uniform Franchise Offering Circular)


ProliferationProliferation• Nearly 5,000 franchisesNearly 5,000 franchises• Covering every industry from Covering every industry from AAnimal care to nimal care to

YYard workard work

Crossroads & OptionsCrossroads & OptionsFranchises vs. Independents

% of Businesses Still Operating

0%

20%

40%

60%

80%

100%

1 2 3 4 5 6 7 8 9 10

Years since opening

% s

till o

pera

ting Franchises

Independents

* Source is US Department of Commerce


FranchisingAs % of total business outlets

Other92%

Franchise8%

FranchisingAs % of dollar volume

Franchise41%

Other59%

Franchises: The 8% Captures 41% !

Crossroads & OptionsCrossroads & OptionsGallup Poll

Results of National Sample94%

75%

6%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of Franchise Owners

94% considered their operations

successful! 75% knowing what they do

now, would own the exact same

franchise.

Only 6% were unhappy with the

working relationships

with their franchisors!

Exploring Business Exploring Business OwnershipOwnership

Business OwnershipBusiness Ownership• ““Outside In” ApproachOutside In” Approach

– Try to learn of as many Try to learn of as many options as possible and options as possible and determine which is most determine which is most appealing, familiar and appealing, familiar and comfortablecomfortable

– Business brokers, Internet, Business brokers, Internet, classified ads, seminars, classified ads, seminars, shows, networking, friends & shows, networking, friends & familyfamily


Business OwnershipBusiness Ownership• ““Inside Out” ApproachInside Out” Approach

– Try to learn as much as possible about Try to learn as much as possible about yourself and determine which business yourself and determine which business vehicle is the best fitvehicle is the best fit

– goals, needs & expectationsgoals, needs & expectations– personal profilepersonal profile– emotion takes a back seatemotion takes a back seat– ask not what you will do in your ask not what you will do in your

business, but what your business will business, but what your business will do for youdo for you

– trust the processtrust the process


Business OwnershipBusiness Ownership• Potential trapsPotential traps

– emotion is the driveremotion is the driver– the E Myththe E Myth– crabs in a basketcrabs in a basket– turning of the stones (frustration and turning of the stones (frustration and

being overwhelmed)being overwhelmed)– needle in the haystack & buyer’s needle in the haystack & buyer’s

remorseremorse


• The ChallengeThe Challenge– Thousands of Thousands of

options to sort options to sort throughthrough

– Details countDetails count– Fit countsFit counts– Decisions requiredDecisions required– Action requiredAction required

• The RealityThe Reality– Most are not Most are not

equipped to handle equipped to handle the selection process the selection process (75% want to, only (75% want to, only 5% do)5% do)


Selecting the best fit!Selecting the best fit!

A Recommended A Recommended ApproachApproach

•EducationEducation– ProfilingProfiling– ValidationValidation

•SelectionSelection•SuccessSuccess


EducationEducation•Learn about yourself Learn about yourself •Learn about optionsLearn about options

– books & tapesbooks & tapes– seminarsseminars– consultantsconsultants


ProfilingProfiling• Learning key information about Learning key information about

yourself to aid in the selection processyourself to aid in the selection process– understand yourselfunderstand yourself– define your goals, needs & expectationsdefine your goals, needs & expectations– understand your ideal work environmentunderstand your ideal work environment– if working with a coach, enable coach to if working with a coach, enable coach to

understand youunderstand you


Profiling - Critical AreasProfiling - Critical Areas– InterestsInterests– Income needsIncome needs– Financial resourcesFinancial resources– Transferable skillsTransferable skills– Attitudes and valuesAttitudes and values– Ideal environmentIdeal environment– Strengths & weaknessesStrengths & weaknesses


Profiling - ToolsProfiling - Tools– Structured interviewsStructured interviews– Open ended questionnairesOpen ended questionnaires– Measurement toolsMeasurement tools– Coach, mentor or consultantCoach, mentor or consultant


ValidationValidation• Explore options with profile in mindExplore options with profile in mind• Look for fitLook for fit• Modify profile as neededModify profile as needed• RepeatRepeat


SelectionSelection• If option fits, seize itIf option fits, seize it• Time to decide & actTime to decide & act

SuccessSuccess• Enjoy the fruits of a smart Enjoy the fruits of a smart

approachapproach


SummarySummary• Decide if you are at a crossroadsDecide if you are at a crossroads• Know your options (don’t be insane)Know your options (don’t be insane)• Study the power of franchisingStudy the power of franchising• Use an “inside/out” approachUse an “inside/out” approach• Use a coach, mentor or consultant Use a coach, mentor or consultant


Words to Live ByWords to Live By• Get out of your own wayGet out of your own way

– check your emotionscheck your emotions– open your mindopen your mind

• Don’t let your dream die or get stolenDon’t let your dream die or get stolen• Give yourself permission to follow a process Give yourself permission to follow a process


QuestionQuestion&&

AnswerAnswer

Documents

Choosing_the_Right_Business