Franchising - An Expert's View - Wendy Dickinson

Show Notes written by Wendy Dickinson, Catalytic Conversation$.

Franchising: An Expert’s View

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Introduction:  
Any business owner will tell you that owning your own business is a lot of work.  If you listen to stories of the how and why of different businesses, it will amaze you to hear the twists and turns that a lot of people have gone through to get to that place.  

Business owners are as varied as the different types of businesses.  They have different reasons for getting into business - some are moving away from a career they didn’t like, or are moving toward the start of a great idea.  They have different experiences with work, consuming products and financial resources. They also have different levels of tolerance for risk.

But, how can you mitigate your exposure to risk?  Many believe that franchises are the way to go.  

Today we look at franchises with one the most successful franchise experts in the country, Gus Iurillo of The Entrepreneur's Source.  Gus will give us tips for choosing a franchise, and what to watch out for.  

SHOW OBJECTIVES: THE WHY

1. Franchises are more successful than startups.
2. Franchisees have the support of the franchisor.
3. Franchises are proven business models.
4. Franchises offer the prospective franchisee the chance to see the business model in action.

KEY ISSUES: Problems You May Encounter:
Failure is possible.  Franchisees do fail.  You have the opportunity to determine what those possible failure patterns are and take steps to guard against them.  Here are just a few:

• Inept franchisees.
• Franchisee reluctance to follow the formula.
• Misalignment between the franchisee and franchisor.
• Lack of funds.
• Poor people skills.

Gus has developed a process for his clients to follow.  He guides them through the decision making process.  Gus and his clients look for fit, adequate resources, support offered from corporate, etc.

What You Need To Know - THE WHAT:
While many will say that franchising is more successful, an equal number of people say that that is a myth.  There are things you need to know.  Such as:

1. The amount of time, money and energy you are willing to risk in this venture.
2. Make a list of the pros and cons.
3. Research the amount of fluctuation, disruption and innovation that has occurred in the market or industry you are interested in.  Chart how those fluctuations align with your risk comfort levels, your family’s life cycle, and your own values.
4. As Jared Hecht says in the Forbes article, you have to get comfortable with the pros and cons before buying.  Do your due diligence!

What You Need To Do - THE HOW

1. Do your research.
2. Know your numbers.  Determine the amount you are comfortable with risking.
3. Look at the market, industry, and franchise ups and downs.
4. Learn the lingo.
5. Research the different franchises.  Determine which are the recession proof.
6. Begin the application process.
7. Set up your discovery day meeting.  Bring your questions along with your growth mindset.
8. Apply for financing.
9. Hire a reputable business attorney (I recommend Scott Simmons.) to review the contracts.
10. Get the training and support you need to succeed.  

At this point, I have to recommend Gus Iurillo of The Entrepreneur’s Source.  You deserve to succeed.  Set yourself up for success.

Resources:

1. “Why Opening a Franchise Business Is Better Than Starting Your Own”, Harsh Pancholia, March 26, 2017, entrepreneur.com.
2. “Why Franchises Fail”, Richard Gibson, April 30, 2007, WSJ.
3. “The Pros and Cons Of Buying A Franchise”, Jared Hecht, February 27, 2019, Forbes.com.
4. “Guide To Buying A Franchise” by Marisa Sanfilippo, August 27, 2020, businessnewsdaily.com.
5. Work The Bugs Out: Practices To Work In, & On, Your Business, by Wendy Dickinson, Publish: TBD.  Excerpt: Free Downloadable PDFs to work through.

You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.

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