Introduce self what would you like to learn today ----- Meeting Notes (2/11/11 12:41) ----- Next slide so what is the american dream.... cab driver story
So What is the American Dream What would immigrants say? I would suggest that .. The Promise of the possibility of Prosperity and success Wikipedia Cab driver story
Why? Ask an Immigrant what is the American Dream They have not been “conditioned” to have a job They have been conditioned to The American Dream CAN YOU DRAW??COKE BROKE CROAK YOLK If you knew you could be a successful business owner, why would anyone prefer to work for someone else? Yet most people don ’ t work for themselves! Why? Something needs to flip the switch like going from a rotary phone where you are connected to wall, to a cell phone. The cell phone gives you opportunities freedom and mobility. You don ’ t have to stop at phone booth and get in a box. . Cell phone gave us opportunities ----- Meeting Notes (4/1/11 14:03) ----- AN OVERWHELMING NUMBER OF SMALL BUSINESS OWNERS ARE VERY HAPPY WITH THEIR LIVES AND BUSINESSES
An overwhelming number of sm biz owners are very happy with their lives
GALLUP CONT Our economy and changes in employment trends have made a significant impact on peoples retirement plans
Lets discuss why we would want to start our own business? Cont on next slide
Usually sells for 3-6 times annual cash flow
The truth is.. Avg executive tenure 2.3 years (execunet survey) Unemployment is currently nearly 10% and over 40% have been unemployed for over 27 weeks. The average job search takes 33 weeks. 33 weeks to find a job expected to last 27 months.
So lets ask ourself… Franchising is a way to accomplish all 4 so what is franchising
So why consider franchiseing? Here are a few statistics
So what is franchising? How is it different from a regular business opportunity? A franchise is a business that is authorized to sell or distribute a company's goods or services in a particular geographic area. It is an investment that is subject to a specific contract called the franchise agreement. A franchise provides for the Pairing of 2 entities (the franchisor and the franchisee) for the purpose of business expansion The franchisor and franchisee have mutually shared goals (increased gross sales, market penetration, and brand expansion) The franchisee benefits from the shared resources and experiences of the franchisor and the other franchisees as well as brand identification such as McDonalds or Aamco. A proven marketing and distribution system Reduced costs through group buying power In essence the Franchisor has a vested interest in the success of the franchisee because the more successful the franchisees are the more successful the franchise becomes. This is one reason many of the better franchises use consultant brokers – like myself – to prequalify candidates. The majority of their time is focused on helping each franchise do the very best it can to succeed and prosper.
You are in business for yourself, not by yourself. You have a partner that has made the mistakes, corrected them, and is there to guide you, which mitigates your downside risk.
NEXT SLIDE FRANCHISE TYPES
define royalty At the Master level you are more of a business consultant and provide training and support to the sub-franchisees in your region.
BENEFITS TO FRANCHISOR expansion with other peoples capital and an owner in place who has a vested interest in the successs of the business. Franchisor has made and corrected all the costly mistakes. When a franchise sells it typically sells for 3-6 times annual cash flow annual Buying a franchise can be a life-changing experience. There are many reasons why you should fulfill your dream of becoming your own boss and open a franchise. The following reasons to buy a franchise will help you to understand why it will be a great investment. Turnkey Business There are many entrepreneurs that have exactly what it takes to run a successful business but don ’t have what it takes to get their business up and running. Whether it be financing, negotiating lease terms or even the confidence it takes to quit their job and start their own business. Buying a franchise eliminates all the hard work: finding a location negotiating a lease hiring reliable contractors doing everything on-time and within budget Unless you are buying and existing business there is a lot of work in figuring out where to build your business, how much to pay what to negotiate in a lease for improvements, how much it will cost you and on and on. Yet these are important issues you need to know about before you can determine your grand opening date, your potential revenue and many other items of interest to a new business owner.
Many franchises in these categories are growing by leaps and bounds even in this economy
You might be surprised to know …
Brick and Mortar vs home based for example SO IF YOU THINK YOU MAY WANT TO BECOME A FRANCHISEE, WHAT DO YOU DO?
Next slide shows fdd then so how are going to pay for it?
So how can I finance my new business? Discuss 401k specifically do not give financial or legal advice SBA loans typically require 20% cash injection
Most of this is common sense but
Make sure we understand your: Goals Criteria Needs Create your unique Business Model Focus on the best possible companies that meet your needs Provide you with coaching as you follow our proven system for research What kind of LIFESTYLE would you like? At work by 6 out by 3 so you can be home for the kids? In by noon and out by 8 – have the morning to yourself and check on business in the afternoon How about working the phones 6-7 hours a day 2 days a week and setting up appointments to go out and meet customers 2 days a week and have a long weekend every week – while your staff takes care of the work orders over a 5 day work week. These are lifestyle choices. They help define the types of franchises your broker would look for. Want to retire or semi-retire in 5 years ? Build up enough equity and value to sell the business at a profit? What if I told you I could put you into a business and get you full training that would allow you to meet those goals for under 100k investment– would you care if it was selling floor covering? Transmissions, window treatments, senior services? Or are you looking to own a “name brand” where you may have to work harder and longer because of the large up from investment in order to break-even – but - you can say I own a McDonalds or Dunkin Doughnuts where or would you rather break even quicker and start putting way profit? Brokers can help you sort thru these issues.
Only you can change your financial future this is yoru life. You only get one shot here. Everything is within your control. Happy Pocket stuff! End with Coke Broke Croak and or and can you draw
Transcript of "Find Your Franchise Pp"
Find Your Franchise Find Your Future
<ul><li> </li></ul><ul><li>Immigrants are 30 percent more likely to start a business than non-immigrants and make up nearly 17 percent of all new business owners in the United States. </li></ul><ul><li>2010 census </li></ul><ul><li> </li></ul><ul><li> </li></ul>
A Recent Gallup Survey <ul><li>Only 11% of small business owners want to retire. 9 in 10 say they are happy with what they do. </li></ul><ul><li>79% of small business owners thought their savings would allow a comfortable lifestyle when they retire. </li></ul><ul><li>Small business owners have the luxury of when to retire. 40% plan to keep working as long as their health allows. </li></ul><ul><li>“ In other words, business owners overwhelmingly like what they do ” Gallup said. </li></ul>
Gallup Survey cont. The number of Americans planning to retire before age 65 has dropped from 50% in 1996 to 29% today, according to a recent Gallup survey of 1,020 adults. Meanwhile the proportion of people planning to work until after age 65 has increased steadily from 15% in 1996 to 34% this year.
Why start your own business? <ul><li>Control your own financial future </li></ul><ul><li>More control and freedom in your life. </li></ul><ul><li>Build equity and profit for yourself instead of the company. </li></ul><ul><li>Emotional fulfillment of building your own dream. </li></ul>
Why Start your own Business(continued) <ul><li>Build an asset to sell or pass on to family members. </li></ul><ul><li>Create an opportunity to work with family. </li></ul><ul><li>Remove threat of job loss. </li></ul><ul><li>Ability to write off many personal expenses. </li></ul><ul><li>Other? </li></ul>
“ Job Security” an Oxymoron? <ul><li>The longer you own a successful business, the greater the security. </li></ul><ul><li>The longer one is employed (these days) the greater your insecurity. </li></ul>
If It Were Possible… <ul><li>To reduce risk to an acceptable level </li></ul><ul><li>Find a business that is affordable </li></ul><ul><li>To capitalize on your skill-set </li></ul><ul><li>And build a business of your own </li></ul><ul><li>Would you seek it out? </li></ul>
Franchising is a HUGE business <ul><li>A new franchise business opens every 8 minutes </li></ul><ul><li>Franchise businesses receive 40% of the retail and service dollars in the U.S. annually. </li></ul><ul><li>Generates 1 out of every 7 US private sector jobs </li></ul><ul><li>Only 1 franchise bankruptcy to every 40 independent business bankruptcies. </li></ul>
What is Franchising? <ul><li>A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees). </li></ul><ul><li>Entrepreneur magazine </li></ul>
What is Franchising Cont. <ul><li>In addition to a well-known brand name, buying a franchise offers many other advantages that aren't available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes startup entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error. </li></ul><ul><li>Entrepreneur Magazine </li></ul>
Franchise Facts <ul><li>A new franchise business opens every 8 minutes of every </li></ul><ul><li>business day. </li></ul><ul><li>Approximately 1 out of every 12 businesses in the US is a franchise business. </li></ul><ul><li>In the US, only 8% of retail businesses are franchised. But that 8% makes up for over 40% of the retail sales in the US. </li></ul><ul><li>There is only 1 franchise bankruptcy to every 40 independent business bankruptcies in North America. </li></ul><ul><li>There are over 75 industries that use franchising to distribute goods and services to consumers. Franchising is responsible for 760,000 businesses, 18 million jobs, 14% of the private sector employment and over $500 billion in payroll. </li></ul><ul><li>95% of franchises are still in business after 5 years. The likelihood a self-launched business will still be in business after 5 years is 47%. Buying a franchise more than doubles your chance to survive as a business owner. </li></ul>
Franchise Types active/passive <ul><li>- Single Unit Franchise </li></ul><ul><li>Multiple Units </li></ul><ul><li>- Area Developer </li></ul><ul><li>- Master Franchise </li></ul>
Benefits of Franchising <ul><li>Turn-key Business </li></ul><ul><li>Tested & Proven systems in place </li></ul><ul><li>Higher likelihood of success </li></ul><ul><li>Corporate image and Brand awareness </li></ul><ul><li>Easier to obtain financing </li></ul><ul><li>Training </li></ul><ul><li>Ongoing support </li></ul><ul><li>Marketing Exclusive territory (typically) </li></ul>
Recession Resilient Franchises <ul><li>If you are concerned about starting a business during poor economic times, you can lower the risk by looking for businesses with certain market characteristics: </li></ul><ul><li>Growing markets driven by demographics </li></ul><ul><ul><li>Senior Care, Residential Repairs & Cleaning </li></ul></ul><ul><li>Essential Services </li></ul><ul><ul><li>Hair Care, Automotive, Damage Restoration </li></ul></ul><ul><li>Business that help other small businesses thrive </li></ul><ul><ul><li>Business Coaching, Expense Analysis, </li></ul></ul><ul><ul><li>Signage, Tech Support </li></ul></ul>
Recession Resistant High Growth Trends <ul><li>Small Business Services </li></ul><ul><li>Personal & Convenience Services </li></ul><ul><li>Senior care </li></ul><ul><li>Healthy Lifestyle </li></ul><ul><li>Pets </li></ul><ul><li>Children services and Education </li></ul>
Cost of Franchise Businesses Total Investment Percent Under $100K 52.5% $100 to $250K 32.7% $250 to $500K 9.2% Over $500K 5.6%
Return on Investment <ul><li>There is NO automatic correlation between the COST of the business and the PROFIT it can earn!! </li></ul>
Franchise Selection Process <ul><li>Select franchises to consider </li></ul><ul><li>Initial phone interview with Franchisor </li></ul><ul><li>Application </li></ul><ul><li>Receive and read FDD (transparency) </li></ul><ul><li>Validation calls to Franchisees </li></ul><ul><li>Discovery Day </li></ul><ul><li>Review agreement with FRANCHISE attorney </li></ul><ul><li>Decision YES or NO </li></ul><ul><li>30-45 days </li></ul>
What is in the FDD? <ul><li>FDD Sample Table of Contents </li></ul><ul><li>Item 1. The Franchisor and any Parents, Predecessors, and Affiliates Item 2. Business Experience Item 3. Litigation Item 4. Bankruptcy Item 5. Initial Fees Item 6. Other Fees Item 7. Estimated Initial Investment Item 8. Restrictions on Sources of Products and Services Item 9. Franchisee's Obligations Item 10. Financing Item 11. Franchisor's Assistance, Advertising, Computer Systems, and Training Item 12. Territory Item 13. Trademarks Item 14. Patents, Copyrights, and Proprietary Information Item 15. Obligation to Participate in the Actual Operation of the Franchise Business Item 16. Restrictions on What the Franchisee May Sell Item 17. Renewal, Termination, Transfer, and Dispute Resolution Item 18. Public Figures Item 19. Financial Performance Representations Item 20. Outlets and Franchisee Information Item 21. Financial Statements Item 22. Contracts Item 23. Receipts </li></ul><ul><li>A qualified franchise attorney should always be consulted before signing </li></ul><ul><li>any contract. </li></ul>
Your Financial Preparation <ul><li>Determine your personal monthly overhead </li></ul><ul><li>Understand you will need to set aside personal living expenses to sustain yourself during ramp-up </li></ul><ul><li>Calculate your total start up costs including working capital to carry your business to break even </li></ul><ul><li>DO NOT borrow too much! </li></ul>
How Can A Franchise Consultant Help You? <ul><li>No Cost </li></ul><ul><li>Education & Coaching </li></ul><ul><li>Hundreds of pre-screened franchises. </li></ul><ul><li>Saves time and money. </li></ul><ul><li>Knows the requirements to qualify for a franchise </li></ul><ul><li>Goal defining. What do you want to accomplish and what franchise can help you get there? </li></ul><ul><li>Thinking outside the box when considering what type of franchise you should consider. </li></ul><ul><ul><ul><ul><li>Understanding your financing options. How will you fund your new venture? </li></ul></ul></ul></ul><ul><li>Avoiding “hype,” “short term trends,” and franchises that don’t make sense for you. </li></ul><ul><li>Gets you to the front of the line with the appropriate contact at the franchise of your choice. </li></ul><ul><li>Acts as a buffer between you and the franchisor until you are ready to make a decision. </li></ul><ul><li>Staying on track and following a process. </li></ul>
Thank you! <ul><li>Would you like to know more? </li></ul><ul><li>Anita Best </li></ul><ul><li>404-218-7808 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.findyourfranchise.com </li></ul>
Employment Facts <ul><li>The unemployment rate reached 9.8% in November 2010. The number of unemployed persons was 15.1 million. The number of long-term unemployed (those jobless for 27 weeks and over) was at 6.3 million and accounted for 41.9% of the unemployed. </li></ul><ul><li>The unemployed in the US spends 40 minutes a day looking for work and 3 hours and 20 minutes a day watching TV. </li></ul><ul><li>The average job search in America now lasts 33 weeks. Thirty-three weeks – more than 8 months – is the longest it has taken Americans to find work since 1948. </li></ul><ul><li>More jobs were lost in 2008 than were created in the last 5 years. In 2009, more jobs were lost than existed in The Great Depression. </li></ul><ul><li>In 2008, 67.7% of the labor force was between the ages of 25-54, and only 18.1% of the labor force population was over the age of 55. </li></ul><ul><li>The Bureau of Labor Statistics conducted a 20-year longitudinal study that focused on the number of jobs held and job duration among baby boomers. Among jobs started, 33% ended in less than a year, and 68% ended in fewer than 5 years. Individuals </li></ul><ul><li>held an average of 11 jobs from age 18 to 44, meaning </li></ul><ul><li>they changed jobs, on average, every 2.3 years. </li></ul>
What are your options? <ul><li>Mobile Units </li></ul><ul><li>Impact people </li></ul><ul><li>Happy product </li></ul><ul><li>Service or product </li></ul><ul><li>Location </li></ul><ul><li>Sales Focus </li></ul><ul><li>Marketing Focus </li></ul><ul><li>Portable Business </li></ul><ul><li>Mandated Service </li></ul><ul><li>Be your own boss </li></ul><ul><li>Home-Based </li></ul><ul><li>Office Environment </li></ul><ul><li>Work outdoors </li></ul><ul><li>Flexible hours </li></ul><ul><li>No employees/employees </li></ul><ul><li>Sub-Contractors </li></ul><ul><li>Income </li></ul><ul><li>Consulting </li></ul><ul><li>Passive Ownership </li></ul><ul><li>Industry </li></ul><ul><li>Scalable Business </li></ul>
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