Choosing the Right Business A seminar for anyone exploring business ownership
Choosing the Right Business Desired Outcome Learn: • Why people consider making changes • About the available options • About the power of franchising • How to choose an option
Have Fun!
Choosing the Right Business Agenda Crossroads & Options Exploring Business Ownership A Recommended Approach Question & Answer
Crossroads & Options At A Crossroads - Push Factors • • • •
Corporate downsizing Widespread job insecurity Job dissatisfaction, burnout Limited earning potential
Crossroads & Options At A Crossroads - Pull Factors • Freedom/flexibility/destiny control – activity – financial
• •
Growing economy Increasing “working years”
Crossroads & Options At A Crossroads - Pull Factors • Franchising appeal – Established track record – Interdependent relationship – Proven system – Access to capital – No previous experience required – Independence & flexibility
Crossroads & Options You can’t make a truly informed decision until you know all your options!
Crossroads & Options Options • Job – Corporate America Job Market – Professional Temporary – Consulting
• Business Ownership – Start a Business – Purchase a Business – Franchising
Crossroads & Options Definition of insanity: Doing the same things over and over again and expecting a different result Examples?
Crossroads & Options 80 70 60 50 40 30 20 10 0
75% Of People Have the Dream of Owning A Business. Only 5% Make It Happen. Why?
Crossroads & Options Corporate America Job Market • Recruiters, classified ads, networking, friends & family • Required experience is more specialized and increasing • Downsizing is a fact of corporate life (3.9 million jobs eliminated in 80’s & 90’s) • Definition of insanity
Crossroads & Options Characteristics of Franchising • • • • • • • •
Proven business system Use of trademark, name, etc. Interdependent relationship Franchise fee Total investment Royalty payments Advertising fees UFOC (Uniform Franchise Offering Circular)
Crossroads & Options Proliferation • Nearly 5,000 franchises • Covering every industry from Animal care to Yard work
Crossroads & Options Franchises vs. Independents % of Businesses Still Operating
% still operating
100% Franchises
80%
Independents
60% 40% * Source is US Department of Commerce
20% 0% 1
2
3
4
5
6
7
Years since opening
8
9
10
Crossroads & Options Franchises: The 8% Captures 41% ! Franchising
Franchising
As % of dollar volume
As % of total business outlets
Franchise 8%
Other 92%
Other 59%
Franchise 41%
Crossroads & Options Gallup Poll Results of National Sample 100%
94%
90%
75%
80% 70% 60% 50% 40% 30% 20%
94% considered their operations successful!
75% knowing what they do now, would own the exact same franchise.
10% 0%
% of Franchise Ow ners
Only 6% were unhappy with the working relationships with their franchisors!
6%
Exploring Business Ownership Business Ownership • “Outside In” Approach – Try to learn of as many options as possible and determine which is most appealing, familiar and comfortable – Business brokers, Internet, classified ads, seminars, shows, networking, friends & family
Exploring Business Ownership Business Ownership • “Inside Out” Approach – Try to learn as much as possible about yourself and determine which business vehicle is the best fit – goals, needs & expectations – personal profile – emotion takes a back seat – ask not what you will do in your business, but what your business will do for you – trust the process
Exploring Business Ownership Business Ownership • Potential traps – emotion is the driver – the E Myth – crabs in a basket – turning of the stones (frustration and being overwhelmed) – needle in the haystack & buyer’s remorse
Exploring Business Ownership • The Challenge
• The Reality
– Thousands of options to sort through – Details count – Fit counts – Decisions required – Action required
– Most are not equipped to handle the selection process (75% want to, only 5% do)
Exploring Business Ownership
Selecting the best fit!
A Recommended Approach • Education – Profiling – Validation
• Selection • Success
A Recommended Approach Education • Learn about yourself • Learn about options – books & tapes – seminars – consultants
A Recommended Approach Profiling • Learning key information about yourself to aid in the selection process – – – –
understand yourself define your goals, needs & expectations understand your ideal work environment if working with a coach, enable coach to understand you
A Recommended Approach Profiling - Critical Areas – Interests – – – – – –
Income needs Financial resources Transferable skills Attitudes and values Ideal environment Strengths & weaknesses
A Recommended Approach Profiling - Tools – – – –
Structured interviews Open ended questionnaires Measurement tools Coach, mentor or consultant
A Recommended Approach Validation • • • •
Explore options with profile in mind Look for fit Modify profile as needed Repeat
A Recommended Approach Selection • If option fits, seize it • Time to decide & act
Success • Enjoy the fruits of a smart approach
Choosing the Right Business Summary • Decide if you are at a crossroads • Know your options (don’t be insane) • Study the power of franchising • Use an “inside/out” approach • Use a coach, mentor or consultant
Choosing the Right Business Words to Live By • Get out of your own way – check your emotions – open your mind
• Don’t let your dream die or get stolen • Give yourself permission to follow a process
Choosing the Right Business
Question & Answer