You hear about franchising every day. Chances are, you spend money in franchised businesses every day as well. Just how big is the franchising way of doing business in 2016 America? In terms of sheer numbers—jobs, revenues, dollars in the economy, people employed—it’s massive.
Once you get past any anxieties about franchise investment, it’s time to do an honest self-assessment about whether you’re suited to business ownership. What do you need to succeed? I spent 17 years working at the Ford Motor Company, and as part of our process there we evaluated potential dealer candidates using four Cs as a guideline: Capital, Capacity, Character, and Customer Satisfaction. A solid candidate could demonstrate all four. In my work as a franchise consultant, I’ve also found a fifth characteristic—Cooperation—to be key. I use these same measures to help interested candidates assess their strengths and weaknesses. To date, they’ve served as an outstanding predictor of success. How do you measure up?
At its core, a franchise is simply a way of doing business—a method that works for providing a service or delivering goods to a consumer.
American orator William Jennings Bryan once said, “Destiny is no matter of chance. It is a matter of choice.” When you decide to move forward in entrepreneurship, you’re going to find yourself overwhelmed with choices. There are nearly 3,000 different franchises in the US today and more than 740,000 unique franchise establishments. There is truly no segment of our economy franchising doesn’t touch. With so many options, it can seem impossible to winnow the massive pool down to just a few prospects. A franchise consultant can help make this process manageable, but you can start by looking at these four main qualities that are the hallmarks of top franchising companies and promising investments:
I’ll let you in on a little secret—and one of the biggest mistakes people make when they first consider franchising: They don’t distinguish between what they’re interested in and what they’re good at. Sounds obvious, but making a simple mental shift from “I like” to “I’m good at” can make a world of difference. You see, when you invest in a franchise, you don't necessarily need to know the new industry on a professional level, though it helps if it's something of interest to you. On the other hand, just because you like an activity or subject area—like crafting, for example—doesn’t necessarily mean a related franchise (like a pottery painting shop) represents the right business model for you.
A good franchise consultant is like a matchmaker, getting the right people together with the right concepts. It’s someone who works with franchisors and franchisees day in and day out who has a unique perspective on the kinds of investments and partnerships that work well—and on those that don’t.
By Pete Gilfillan, author of Amazon Best Seller HIRE YOURSELF: Control Your Own Destiny Through Franchise Ownership
by Pete Gilfillan, author of Amazon Best Seller HIRE YOURSELF: Control Your Own Destiny Through Franchise Ownership
Topics: How To Build Wealth
By Pete Gilfillan, best-selling author of HIRE YOURSELF: Control Your Own Destiny through Franchise Ownership.