Joel Libava's Blog: The Franchise King Blog, page 87

Hot Franchise Topic: Getting a Loan

It seems like the entire franchise industry is focused on funding, and with good reason; franchise loans are still a bit challenging to secure.

But, if you’re a potential franchise owner, I’d wager that you’re a lot less concerned about what the talk is in the Franchisesphere concerning loan availability, and more concerned with actually getting a small business loan for your franchise business start-up.

 

 

If that’s the case, there are a few thing that you can do to help ensure that you can open for business….

Ask your relatives for a loan

Borrow money from yourself

Learn all about the SBA loan process

Write an amazing business plan

 

In these rather uncertain times, becoming a franchise owner will require you to be;

A. Patient- the wheels are moving slower

B. Focused- ignore people that don’t have expertise in franchising and financing

 

You can do this.

 

Military Veterans And Franchises: A Fit?

 



 

I’ve had the honor of working with several of our military veterans over the years. I’ve participated in Veteran’s Symposiums. And, I’ve helped veterans find franchise businesses.

I love working with veterans. I figure that it’s the least I can do. It’s my way of showing gratitude for their service.

Men and women with a military background can make fantastic franchise owners. They have a serious amount of built-in skills, including discipline, focus, and the use of systems. Generally, they’re comfortable with authority, which is a plus in a business model like franchising.

 

In General

 

Not all military veterans are suited to franchise ownership. For example, some veterans are more risk-averse than others. Some veterans don’t have the investment needed for a franchise business. And, it’s fair to say that some of our vets have had enough stress in their lives, and just don’t want the type of stress that tends to be associated with a start-up business.  For them, a traditional job is probably the way to go.

But, if you’re a veteran that’s interested in exploring franchise ownership (or you know one), I put together a list of tips for over at the International Franchise Association’s VetFran blog.

(VetFran is the IFA’s program that helps returning service members access franchise opportunities through training, financial assistance, and industry support.)

Read my 5 Tips for Military Veterans Interested in Franchise Ownership

 





 

The Perfect Location

Last week, on your way to work, you noticed that there was an empty retail space in one of the more popular strip centers in your area. Although you’ve shopped there in the past, for some strange reason, you can’t remember what used to be in that empty space. Whatever.

And, speaking of work, you’re pretty darn miserable there, and you’re not feeling very positive about your future. You’ve been semi-looking around for a new job, but you haven’t found anything that excites you. As a matter of fact, the idea of starting yet another new job is a pretty depressing thought.

Which is why you’ve been casually scouting out possible locations for a business. Of your own. A franchise?

Here’s the thing;

 



 

You’re putting the cart before the horse.

First of all, have you even determined if you’re suited for franchising? That’s kind of important.

Have you decided on a budget?

Are you married? (Huh?) Are you married–or do you have a partner? If so, have you asked them how they feel about your idea?

 

About That Location

 

Assuming that you’ve determined that you’d fit nicely in a franchise system of some sort, what are you trying to accomplish by looking for potential locations for your new business? Do you even know if the franchise you end up investing in would require a retail space? If you aren’t sure yet, even The Retail Doctor can’t help you.

You may have found the best location in town for your yet to be named business, but it doesn’t matter. Again, it doesn’t matter.

Yet.

 

Watch this short video to find out why….

 

 



 

Please Vote For This .biz Franchise Website!

 

The .biz domain name is celebrating it’s 10th Anniversary, and the business website that you’re now on is part of the celebration!

Little did I know that when I found out that the “.com” domain was already taken for my book’s official website, that it would actually turn out to be a good thing….

This site is being showcased on my.biz, and all you have to do to see it is scroll using the tabs that you’ll see on the contest website.

Take a look, and read my story.

And, then please Vote for my site.

Thank you!

Go Here To Vote

 

Things To Look For In a Franchise Organization

 

If you're an engaged franchise buyer, you're probably becoming increasingly aware of all the things you need to do before you write The Check. There are lots of details!

I talk a lot about doing proper research on this franchise blog, as well as on some of the other blogs and websites I write franchise articles for.

 

Do Different Research

 

You need get in touch with several current and former franchisees of the chain you're looking at, so you can get the real scoop. (It's essential!)  You also need to do some research on the actual franchise company; that is a little more difficult. If you're really analytical, you can do some D&B research. I'm not sure how much you'll learn by doing that, but, you never know. The point is this; do some digging into the franchise company, so you can sleep better at night. (I'm not suggesting that franchisors try to hide things about their internal operations. It's just business.)

Dr. Callum Floyd is the leading franchise expert in New Zealand, and just wrote about the topic of franchisor research;

"The better companies have thought about all key business elements and functions and configured the business based on knowledge of what works -and what doesn't. They understand customers, the value proposition to customers, how best to market and sell, how to fulfil operations efficiently whilst maintaining quality, implement relevant technology, provide necessary training and support systems, and so on."

Please read Dr. Floy'd article.

You'll learn a ton.

 





 

Franchising For The Ladies

 

As a franchise advisor, I've had the pleasure of working with some pretty remarkable women. Remarkable in the sense that they came from very successful careers in corporate America, and had the courage to walk away from them. Walking away from a $125,00 a year job offer and right into the unknown, (small business ownership) is not for the faint of heart.  On the inside flap of my book, I'm quoted as saying this;

"Franchise ownership isn't for everyone; as a matter of fact, it isn't for most people."

Some of my fellow industry professionals don't care for the quote, but it's true. One must possess a certain type of DNA to do it. talking about becoming the owner of a franchise, and actually writing a $35,000 check up-front to officially become a franchisee are two very different things. It's kind of like thinking about going skydiving one day, vs. standing at the edge of the airplane's doors getting read to jump!

 

But, it can be done. (Not by me, though!)

 

Read this post by the folks over at Franchise Direct about the power of women franchise owners. It's a good one.

And, if you know of a woman who's been talking about becoming the owner of a franchise someday, have her enter this cool franchise business contest.

#OWOF on Twitter

 

Will Mom, Dad, or Uncle Mort Say Yes?

 

If you're a young franchise buyer, it's a whole different world for you.  I recommend brushing up on your sales skills; you're going to need them!

Since almost every major bank from California to Maine isn't going to take you seriously, you have one option; your family.

 

Meet Uncle Mort

 

If you're college-aged, and your serious about becoming the owner of a franchise business, it's time for a reality check.

You will be turned down by your local bank. (When you apply for a loan)

 

Now, unless you've just received a lump sum of money, and can pay for a new franchise start-up with cash, someone will have to step up for you, and help you get financed. And, Uncle Mort might be just the guy.

 

Check out these unique opportunities;

Become a Franchise Broker
Hot Solar Energy Retail Opportunity!
Low-Investment Business
Multi-Unit Ownership

 

Let's say that you've found an opportunity that you'd like to pursue…you just need some seed money. Great!  But, you'll need to be prepared. If you're really serious about approaching one of your relatives for money, preparation is key. Don't walk into to your Uncles office naked. Bring all the information that you've been able to gather during your research. (If you need help determining just what to gather, grab my franchise book.)

 

 

 

 

As cool as your Uncle, or your Mom or Dad are, they probably won't be too enthusiastic about writing you a $150,000 check if you haven't done your homework.

"One important key to success is self-confidence. An important key to self-confidence is preparation."- Arthur Ashe

 

I just read a post from YoungEntrepreneur.com co-founder, Adam Toren. In it, he writes about the research aspect, too.

"You didn't come up with this idea in a vacuum. Show them articles, statistics, demographics and market information which support the need for your business or back up your idea."

 

 

I highly recommend that you read Adam Toren's entire post. He goes through everything that you'll need to do as a young future entrepreneur.

 

Starting Costs Calculator

 

For Franchise Buyers That Don’t Want To Lose Sleep

 

It’s perfectly normal to get a little nervous as you approach Decision Day. Unless you’re a robot, your emotions are going to be up and down.

 

(Really up and down)

 

I can’t completely help you stay even, during this intense time in your life. This, “Buying a franchise” thing is big. It’s serious stuff. Investing $100,00 or more into a business of your own is not for the faint of heart. As a matter of fact, I’ve said it before, and I’ll say it again;

 

Franchise ownership isn’t for most people. That’s because most people…okay, a lot of people, move away from risk, instead of towards it. And that’s okay; it’s what makes the world go around.

 

But there are ways to lower risk, especially when it comes to buying a franchise type of business. One way to to do it is by doing amazing franchise research. Would you like to learn how?

 

 

Ask Great Questions

 

 

That’s how. It’s easy, really. Especially if you have them right in front of you while you’re doing your franchise research. The questions that I’m referring to are the ones that you ask of the current and former franchisees of the franchise concept you’re looking into owning one day. These questions are all in my book. And, they’re somewhere else, too.

 

I’m doing a series of posts on The Franchise King Blog in which I’m listing each and every question, (all 40) that I’ve provided in Become a Franchise Owner!, one by one, and then I’m going a lot more in-depth about each one. I’ve found that sometimes people that are buying franchises…or are at least exploring the idea, want to know why they’re asking the questions that I’m suggesting. It’s probably because some of them are difficult ones to ask.

 

If you’d like to continue learning about the franchise research steps that I teach, click the link below, and subscribe to The Franchise King Blog. It’s free, and you get to choose to receive the posts via email, or you can add them to your desktop, and read them at your leisure. I know that you’ll find them useful.

 

Subscribe Here

 

 

For Franchise Buyers That Don't Want To Lose Sleep

 

It's perfectly normal to get a little nervous as you approach Decision Day. Unless you're a robot, your emotions are going to be up and down.

 

(Really up and down)

 

I can't completely help you stay even, during this intense time in your life. This, "Buying a franchise" thing is big. It's serious stuff. Investing $100,00 or more into a business of your own is not for the faint of heart. As a matter of fact, I've said it before, and I'll say it again;

 

Franchise ownership isn't for most people. That's because most people…okay, a lot of people, move away from risk, instead of towards it. And that's okay; it's what makes the world go around.

 

But there are ways to lower risk, especially when it comes to buying a franchise type of business. One way to to do it is by doing amazing franchise research. Would you like to learn how?

 

 

Ask Great Questions

 

 

That's how. It's easy, really. Especially if you have them right in front of you while you're doing your franchise research. The questions that I'm referring to are the ones that you ask of the current and former franchisees of the franchise concept you're looking into owning one day. These questions are all in my book. And, they're somewhere else, too.

 

I'm doing a series of posts on The Franchise King Blog in which I'm listing each and every question, (all 40) that I've provided in Become a Franchise Owner!, one by one, and then I'm going a lot more in-depth about each one. I've found that sometimes people that are buying franchises…or are at least exploring the idea, want to know why they're asking the questions that I'm suggesting. It's probably because some of them are difficult ones to ask.

 

If you'd like to continue learning about the franchise research steps that I teach, click the link below, and subscribe to The Franchise King Blog. It's free, and you get to choose to receive the posts via email, or you can add them to your desktop, and read them at your leisure. I know that you'll find them useful.

 

Subscribe Here

 

 

My Franchise Book Just Hit Number 1 On Amazon.com

 

My book, Become A Franchise Owner! The Start-Up Guide To Lowering Risk, Making Money, And Owning What You Do, just hit the top spot over at Amazon.com.

 

It's currently Number 1 in the Small Business Franchise category!

Click The Image And See!

 

Thank you for your support! It means a lot…

 

And, if you're a woman who's been thinking about owning a business….

 

Go Here!  Hurry!! Prizes! Free Stuff!