insuranceclub's Blog

I know of so many people who have started a business franchise, once they were sold on the idea, and put in 60 - 80 hours per week into it. All of their heart and soul went into this business - we're talking blood sweat and tears. I even had a friend who had broken his finger (very badly) whilst at work one day, who decided to put off seeing the doctor until he 'had the time'. By the time he had gotten to the doctor, he nearly ended up losing his finger due to lack of blood supply!

This brings me to the first item on the list of things you need to be successful in a business franchise.

1. Determination - Often times, when starting a business, people fail to realize just how tough it can be. You need to have the mental, physical and personal determination in which to succeed. Have you ever looked at a really successful person, lets say Donald Trump as an example. How many times has he failed? More than you or I can count. His secret to success is that he keeps getting up, and right on trying - he has serious determination and persistence. He has even been bankrupt at least twice in his life, and yet he continues to build massive fortunes. Determination is key in running a franchise.

2. Planning - Do you hate writing? Can't be bothered to write out a business plan? It's already all in your head, right? You don't need to write it down! It is essential that you develop a business plan for your venture whether you're starting a traditional bricks and mortar business,  freelancing or consulting in your area of expertise or launching a new Internet-based business. WHY? Because without a plan, you don't have anything to focus on, let alone know when you have achieved success. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. 

So before you start writing, you'll need to decide what purpose your business plan is going to serve.  Even if you're already running a franchise business, the process of writing a business plan can help you decide exactly what aspects of your business are succeeding and which areas could be improved upon. 

3. Helpful people/ Mentors - Is there someone who has already had success in your line of business? Do you know someone who is willing to share their story and give you tips to keep you on track? People who have already achieved the goals that you have for yourself and your franchise, have been there, and done that. They know exactly how to do it, and can impart with many worthwhile, money saving tips to assist you on your journey. Ensure that you will have the support and help that you need from someone who has already gotten to the destination - success.

4. Time Management - Are you a good organizer? Are you always on time, and have everything you need when you are at appointments - or do you run in the door last minute or even late, all flustered? In business, and especially franchise business, you are a reflection of your business. If you are never on time for appointments, always disorganized, never have the right equipment or paperwork, even if you aren't dressed appropriately - this really reflects poorly on you and your company. If time management isn't your strong point it is something that you need to work on. When I first started out in business, this was a major issue for me. I came from family that was constantly late for EVERYTHING - school pick ups, weddings, appointments, surprise parties, you name it - we were late. Family friends would even tell us that their events started an hour and a half earlier, just to make sure we got there on time! Now do you think this would assist me in running a business? NO WAY. I learnt to always be prepared, always leave with enough time to be punctual. There is nothing more impressive to a potential client, than to turn up on time or early, with everything you need, and dressed in a professional manner.

It goes without saying that starting or buying a business during a recession may not be the smartest thing to do. However, history would suggest you are wrong. Some of our strongest and most successful companies started during a recession. For example, Hewlett Packard started out of a garage during the Great Depression.

If you've decided to start or buy your own business one of the best strategies would be to choose an industry that's performing well in spite of the recession. An analysis of data by Sageworks found seven industries that are experiencing growth despite the recession.

These seven industries are as follows.

1. Vehicle maintenance. Auto-repair shops increased sales an average of 2.4 percent over the past 12 months. In contrast, car dealers saw their sales drop 9.7 percent in the same period.

2. Home remodeling. Sales rose 4.6 percent in the past year for contractors such as electricians, plumbers and heating specialists. On the flip side, home builders saw their sales fall at least 5 percent in the same period.

3. Food stores. Grocery stores' average sales increased 6.7 percent in the past year, while sit-down restaurants saw sales fall 3.9 percent.

4. Specialty schools. In 24 months, technical and trade schools had top-line revenue growth of 7.8 percent, up from 5.9 percent in 2007.

5. Dentists. The average dentists' office saw sales increase 7 percent in the past year, up from 5 percent in 2007.

6. Certified public accountants. The average revenue at accounting firms grew 10.2 percent in the past year, making the accounting industry among the top 20 sectors in the country by sales growth.

7. Personal-care services. Skin-care specialists, nail salons, barber shops and hair salons saw average sales grow 4.5 percent in the past year.

As you consider your options make sure you understand your personality, the skills you bring and your resources. Your options include starting your business from scratch. This can be the least expensive option but you have to come up with an idea that's currently not in the market and hope you can execute to make a profit before your capital runs out. If you buy an existing business or buy the rights to a franchise, do your research. If you look at buying the rights to a franchise, make sure you interview as many franchise owners in that system as possible as this will give you great insight in determining the success of that franchise. Franchising is a great option for a business owner who doesn't want to do everything and is particular attractive to those that have worked in Corporate America and developed highly specialized skills.

The franchiser brings their skills and experience they have developed over the years and generally bring this to you at a much cheaper price than you can acquire on your own. Before you invest too much time looking at a franchise, make sure it's available in the area where you live. If the territory is sold, look for another opportunity.

There are an enormous range of franchises available. My office currently has over 120 different franchises for sale. If you would to see if one of these suits you, click on the following link http://www.andrew-rogerson.com/franchises.htm Once the page loads, move towards the bottom of the page and click the link that points to the list of current franchises available.

Fast food restaurant franchises are targeting Britain's middle classes. It may surprise you to learn that the middle classes are rapidly becoming Britain's largest consumers of takeaways and other fast foods. Increasingly busy lifestyles mean that hungry business people and other professionals are chomping their way through more pizzas, quarterpounder burgers, curries, kebabs and chips than manual labourers, shop workers and bus drivers. If you have been working hard all day, returning home at 8pm after a long commute totally shattered, phoning for a takeaway is a very tempting option. For many people, cooking is a chore, especially in households where both partners work long hours. Anyone who works full-time will understand that planning and preparing fresh lunches and dinners seven days a week, 365 days a year, is often simply impossible. In addition, the traditionally affluent middle classes are feeling the financial pinch in these difficult economic times and fast food restaurant franchises offer cheap, tasty, value for money food, which is often less expensive than making your own meals from scratch.

A recent survey has found that approximately one in three British adults eats takeaways at least once a week, and more than three million people eat takeaways at least twice a week. Three factors drive this trend. First, human beings are fundamentally lazy and no, we haven't become a nation of cooks, despite our obsession with TV chefs and cookbooks. Second, greater availability of quick-food outlets drives its own demand. We can't say no when it comes to food. And third, much fast food actually tastes rather nice, often better than the stuff we cook for ourselves. This all adds up to big business for restaurant franchises, with the potential for an even greater volume of sales. However, takeaway food typically served by restaurant franchises is notoriously unhealthy. The average takeaway contains high levels of salt, sugar, fat and monosodium glutomate - cheap and potentially addictive ingredients. As an occasional treat, this should not be a problem but when eaten regularly, such high levels of fat, salt and sugar can have a significant health impact. It can be argued that there is no reason for take away food to be so unhealthy, apart from profits from cheap ingredients. For example, healthy olive oil is expensive but unhealthy oils are cheap. The fact remains, however, that when one restaurant franchise outlet starts selling cheap to corner the market, the others have to follow suit or go out of business..

Some takeaway restaurant franchise chains are making an effort to add healthier options to their menus, but these are in the minority in the UK. So it seems there is a gap in the market for healthy fast food restaurant franchises in Britain. The middle classes have traditionally been regarded as more health-conscious and, with the number of takeaways they are consuming rapidly increasing, the time may be right for quick-food restaurant franchises to exploit this demand by offering healthier menus.

If you're a franchiser who has sold a franchise to an entrepreneur, read this! It explains why you're frustrated.

If you're an entrepreneur who bought a franchise, read this! It explains why you're unhappy.

Hurry! Because in neither case will things get better. Of that I am certain.

Michael Gerber says so, too!

So is Michael E. Gerber, author of The E-Myth and other best-selling business books. Gerber is the man INC Magazine calls "The World's #1 Small Business Guru!" Recently, he and I discussed franchising and entrepreneurs.

At one point in our discussion, Gerber reminded me of what he had written in another of his best-sellers, Awakening the Entrepreneur Within. "Entrepreneurs do not buy business opportunities, they create them," he wrote. "While business opportunities such as franchises are more likely to guarantee the success of the person who buys them, they are only successful to the degree the buyer suppresses his or her inclination to invent--suppresses his or her entrepreneurial passions."

What happens to the entrepreneur who buys a franchise

Now brace yourself franchisee entrepreneurs: "Therefore," Gerber continued, "entrepreneurs who buy business opportunities are doomed to disappointment, no matter how successful the business is. The passion of the entrepreneur is not to run a successful business-not to run a business someone else invented-but to invest in a unique business that becomes successful. Business opportunities are invented for technicians or managers to run who have no aspiration to be entrepreneurs..."

Of course, you already know that if you are a student of Gerber's book, The E-Myth. If you're not, that may explain how you ended up buying a franchise when you really wanted to act like an entrepreneur. Go read the book - maybe again?

Franchisers only pretend to want entrepreneurs

"Franchisers," Gerber said to me, "can only hope not to sell a franchise to an entrepreneur. They may say that's who they are looking for, but they're not. Once they sell to an entrepreneur, their real problems begin. Entrepreneurs want to do things their way. A good franchiser knows that franchisees must do things the franchiser's way. That's why Ray Kroc was so successful with McDonald's. It's why so many other franchises are not successful."

Written it and done it, too

At 73, Gerber speaks with the authority of one who has not only written the Small Business Gospel, but lived it. Both old and new covenants. He's been a franchiser. Plans to become one again. He knows the wants, desires, motivations and frailties of people, people who buy and start businesses, people who operate businesses, and especially people who do so unsuccessfully. Unhappily. People who wonder why their business didn't turn out better.

He knows why.

It's the F-Myth. The myth that franchising was created and exists for entrepreneurs.

"Sell" is not a four letter word

The Question: What do you do now?

If you're an entrepreneur who owns a franchise and you're unhappy, sell! It's not going to get better. If you're happy, good for you and good for your franchiser. 

If you're a franchiser who has sold to an entrepreneur and you're frustrated (because the franchisee won't comply), encourage the franchisee to sell! In fact, think about buying back the franchise. It's not going to get better.

Meanwhile, if you're truly an entrepreneur, don't buy a franchise unless you can agree to do things the franchiser's way. If you're a franchiser, don't sell to entrepreneurs unless you're okay with them doing things their way (and you should not be). Both desires are difficult to resist. 

They call it internet real estate, or a domain name. This is what you need to host a web site. But it's gone much further than that within the last decade. We are at a point now where we can run an entire business online. I'm talking marketing, e-mail, support, call centre, product, licensing, corporate setup, security, insurance, business planning and compensation, merchants, tax, and so on. There are a few differences between the new and old ways of doing business, but I have to tell you that more and more people are moving away from the traditional ways and towards the new system.

Why do people actually do this? Let me list the reasons for you:

Franchise

- High Investment from $250,000 to $2,500,000
- Five years before you can expect any kind of profit
- 15% profit or less
- 16 hour work days as being an owner
- $40K a year salary as an owner
- Teenage employees required
- Large daily inventory with hassles and even delays
- Expensive Rent
- High Insurance Costs
- More Taxes
- Less Freedom

Internet

- Invest $2,500 to $25,000
- 15 days until profit
- 75% profit or more
- 3 to 4 hour work days as owner
- $250,000 + a year salary as owner

There are 6 more and even greater advantages that I will list for you when you visit my blog!

I don't know if you are an entrepreneur or if you want to be in control of your own enterprise, but I have found that the internet is becoming more secure, higher in volume and more orientated to do business. If you do not have a good online presence in another 10 or 20 years, I do feel sorry for you and your business, this is where the economy is headed!