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Casual Articles - Franchise Opportunity - 5 Questions To Ask About The Franchise
The success of your business is critically dependent on how well you negotiate and manage your financial partners. Banks, investors, credit cards and financial services companies work for you. Therefore, you need to be sure you are working together, understand the plans of each and have the best idea of what and how things will happen when times get tough.It is very simply like dating, and you need to be acutely aware of how words, actions and contracts meld together to form a base for your business structure to build on.1. Ask for resume of your loan officer and if a small community bank the resume(s) or work history of the principals. Banks have one of the fastest turn over rates and as the industry continues to consolidate, so people are moving fast. It’s not always the bad ones that move on, there are actually good folks that get snapped up by the private sector. Know how often they move, and where to and where from. And, ultimately, if you can go with, assuming the relationship is good.2. Ask to meet 2 to 3 levels up. Loan officer’s boss, senior vice president of commercial lending and again, in small community banks, a principal. If your
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to yo
Over the course of history there have been events and legislation that has transformed the financial markets, our economy and the way we conduct business , such as the legislation that form the Securities and Exchange Commission, the Internet has also has transformed the way we do business and communicate.Sarbanes-Oxley falls into that categories, this piece of legislation named after Senator Paul Sarbanes (D) MD and Representative Michael Oxley ( R) Ohio was passed in response to the Enron and Worldcom scandal.When legislators in Washington are confronted by a problem they also rush to come up with some type of legislation to give the appearance that they are doing something about the problem, and we the electorate have become accustomed to having Washington solve all of our problems.But Washington’s solution to one problem is the beginning of another one and often times a bigger one.Sarbanes-Oxley is making it extremely expensive for small and mid-size company to be able to afford the cost of an audits, the requirement of Sarbanes-Oxley has almost double the cost audits.And compliance with other requirement of Sarbanes-Oxley i
A Franchise strategy allows the Franchisor to penetrate, develop, and dominate markets on a simultaneous basis. A Franchise system also allows for each individual Franchisee to own their very own business, and yet participate in, and garner value from, a proven Franchise system.
A good Franchise system allows the Franchise Company to gain market share quickly, which serves as a barrier to competition, and helps build the Brand, which in turn creates exponential value for all stakeholders – including each Franchisee.
So how do you identify a good Franchise system? Well it makes sense that if you want to find out about strategies, culture, and compatibility, then you should ask the right questions. The answers can then be assessed to determine if the fit is right.
The following discussion covers five questions that should always be asked by the Franchise Candidate. If a Franchisor is either unwilling, or unprepared, to answer these questions, it should be a strong indicator that the fit may not be right.
How Big Is The Market?
The Franchisor should have a good handle on the available market for the product or service that you will be offering as a Franchisee. Presumably the Franchisor has done extensive research on the current market size, as well as the potential market size for the future.
The Franchisor should be willing to share that information with you so you can assess the data to make sure that the opportunity is going to be of sufficient size to satisfy your own goals. You may have to sign a non-disclosure agreement first, but the information is important to you, so it must be assessed. The whole idea of Franchising is to ensure that the goals and dreams of the Franchisee, and those of the Franchisor, are unified. If the market availability will allow for strategies to be implemented by you, which are consistent with your goals, and those penetration goals are congruent with the Franchisor’s goals, then all is good.
If it’s a long-standing and stable market, then there should be plenty of statistics to back up that conclusion. If it’s a new and burgeoning market, there should be analysis that you can assess to give you a comfort level that you, together with Franchisor, can go get a significant share. If it’s a fad market, or limited life market, then the strategies should reflect that, as should the agreements.
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to you
It has been said, there is no better way to hone your skills and improve your performance, than competition. Competing with others, or even with your self, fosters continued improvement, striving for even higher goals, and an ongoing sense of achievement. Competition in the world of business is natural and expected. Every business has competitors that are vying for the dollars in the marketplace. And over the years, some of these competitors have been classic. Coke versus Pepsi comes to mind, as does Avis versus Hertz in the rental car industry. Years ago Miller Lite had commercials where two factions of their fans competed over the reason to buy their product. As a crowd gathered half the group would shout out "Less Filling!!" while the other half would retort "Tastes Great!!!" They were humorous commercials with Miller Lite being the only real competitor. These classic competitions served to strengthen the product itself and made the competitors stronger. In effect, both Pepsi and Coke won, as did Avis and Hertz.Competition can be a very intense experience and a very rewarding one, or it can be enormously destructive. - Andrea Lawrence - Ski Champion<
A good Franchise system allows the Franchise Company to gain market share quickly, which serves as a barrier to competition, and helps build the Brand, which in turn creates exponential value for all stakeholders – including each Franchisee.
So how do you identify a good Franchise system? Well it makes sense that if you want to find out about strategies, culture, and compatibility, then you should ask the right questions. The answers can then be assessed to determine if the fit is right.
The following discussion covers five questions that should always be asked by the Franchise Candidate. If a Franchisor is either unwilling, or unprepared, to answer these questions, it should be a strong indicator that the fit may not be right.
How Big Is The Market?
The Franchisor should have a good handle on the available market for the product or service that you will be offering as a Franchisee. Presumably the Franchisor has done extensive research on the current market size, as well as the potential market size for the future.
The Franchisor should be willing to share that information with you so you can assess the data to make sure that the opportunity is going to be of sufficient size to satisfy your own goals. You may have to sign a non-disclosure agreement first, but the information is important to you, so it must be assessed. The whole idea of Franchising is to ensure that the goals and dreams of the Franchisee, and those of the Franchisor, are unified. If the market availability will allow for strategies to be implemented by you, which are consistent with your goals, and those penetration goals are congruent with the Franchisor’s goals, then all is good.
If it’s a long-standing and stable market, then there should be plenty of statistics to back up that conclusion. If it’s a new and burgeoning market, there should be analysis that you can assess to give you a comfort level that you, together with Franchisor, can go get a significant share. If it’s a fad market, or limited life market, then the strategies should reflect that, as should the agreements.
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to yo
For people considering market research, a point that often trips them up is the difference between qualitative and quantitative market research. Unfortunately, there are such important distinctions between those two types of research methodologies that it’s difficult to consider the pros and cons of conducting market research until those differences are made clear. That’s the goal of this article.I know that it’s stating the obvious, but the terms really are made much easier by remembering their root words – quantitative market research measures the quantity of respondents who feel or act in a certain way. While qualitative market research is helpful in understanding the quality of a customers’ behavior or attitudes – why do they feel or act in a certain way.Qualitative = Quality (hows and whys or “directional”)Quantitative = Quantity (less depth, but includes solid numbers)Quantitative Market ResearchQuantitative research is a rigid research tool that typically asks every respondent an identical set of questions, generally allowing the respondent only to select from a group of pre-defined answers. In order to provid
How Big Is The Market?
The Franchisor should have a good handle on the available market for the product or service that you will be offering as a Franchisee. Presumably the Franchisor has done extensive research on the current market size, as well as the potential market size for the future.
The Franchisor should be willing to share that information with you so you can assess the data to make sure that the opportunity is going to be of sufficient size to satisfy your own goals. You may have to sign a non-disclosure agreement first, but the information is important to you, so it must be assessed. The whole idea of Franchising is to ensure that the goals and dreams of the Franchisee, and those of the Franchisor, are unified. If the market availability will allow for strategies to be implemented by you, which are consistent with your goals, and those penetration goals are congruent with the Franchisor’s goals, then all is good.
If it’s a long-standing and stable market, then there should be plenty of statistics to back up that conclusion. If it’s a new and burgeoning market, there should be analysis that you can assess to give you a comfort level that you, together with Franchisor, can go get a significant share. If it’s a fad market, or limited life market, then the strategies should reflect that, as should the agreements.
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to yo
Here are seven additional factors to consider as you define the parameters that produce success in your company's sales job. If you are a salesperson, you can also benefit from considering these questions, as they can help you identify target prospects and further refine your sales approach.9. Administration Which sales job functions require attention to detail? (Examples include making accurate forecasts, providing timely updates to the corporate CRM system, analyzing customer records to determine sales strategies, and ensuring regulatory compliance.) Some companies have support personnel that perform administrative tasks on their salespeople's behalf. Other companies expect their salespeople to deal with a certain amount of administration. If a tolerance for process, detail and administration is necessary for success in your company's sales job, some amount of Tolerance for Administration is desirable in your salespeople.10. Communication How important are verbal and written communication skills to sales success in your company?eement first, but the information is important to you, so it must be assessed. The whole idea of Franchising is to ensure that the goals and dreams of the Franchisee, and those of the Franchisor, are unified. If the market availability will allow for strategies to be implemented by you, which are consistent with your goals, and those penetration goals are congruent with the Franchisor’s goals, then all is good.
If it’s a long-standing and stable market, then there should be plenty of statistics to back up that conclusion. If it’s a new and burgeoning market, there should be analysis that you can assess to give you a comfort level that you, together with Franchisor, can go get a significant share. If it’s a fad market, or limited life market, then the strategies should reflect that, as should the agreements.
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to yo
I've had lots of good results from my advertising lately - well, I say advertising but what I really mean is, I've had lots of good results from my ARTICLES.Writing so called 'press releases' is much more exciting than designing an advert.The results are better too, by far.All I do is make it sound newsworthy and it seems to get used by the magazine(s) that I've sent the article to.The thing is, most people think that their article would never be used - why would a publication be interested in me?. Well, they ARE interested in you, or rather, your story. You'd be surprised at how magazines and, especially, local newspapers are crying out for stories. A new business launch or a sudden improvement can well be newsworthy.Even if it's not super exciting, it may well fill a space that the editor has and will be glad to see your article fill it. It will be of interest to somebody anyway.A recent example would be a members only website that I am running and couldn't get enough interest in it to make it work on the subject matter. I decided to write an article about it and sent it to the editor of a trade magazine. It was pr
The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.
Who are The Competitors?
The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn’t matter how big a market is if it’s completely saturated, unless the Franchisor has specific strategies to eat someone else’s lunch.
The Franchisor should be able to talk to you about specific competitors, what their strategies have been, what they will likely be in the future, and how the Franchise system intends to penetrate that market.
The Franchisor should also be willing to discuss the future competitor that may appear on the horizon. They may not be willing to disclose their specific strategies about dealing with that eventuality – at least not without erasing your memory after the discussion. However, a general discussion about the issue should give you some solace that they have thought about their approach, and that you feel comfortable with their preparedness.
Again, if the Franchisor is not sufficiently prepared to discuss current competition, as well as future competition, then warning bells should go off.
Is The Franchise Scalable?
This issue relates to your own targets, as they all do. If you want to grow a your business to leverage the Franchise process in multiple locations, or by leveraging the results of a number of employees, or by any other criteria appropriate for the business, does the Franchisor allow for that growth? If leverage is one of your goals, and the means and market are available in the Franchise system, what is the cost of that leverage?
Some systems that provide services, won’t allow you to hire employees, while others encourage it. In the case of the systems that encourage it, you should ask about the cost of adding units in that strategy, and the training process for any new employees.
In retail environments, the leverage will come from additional locations, or physical expansion, or additional product lines, so your questions must relate to that availability, and the capital cost required to execute the strategy.
Other related questions include asking about geographic restrictions to where you can build business. Again, some Franchises have geographic restrictions, while others allow you to build business without reference to the map.
The important thing is to ask the questions, and understand the answers to make sure your future growth goals can be met by the system you are assessing.
What Are The Franchisor’s Growth Plans?
You may think that a Franchisor’s growth plans are not important to you once you become a Franchisee. However, there are a number of factors that illustrate that a Franchisor that has continuing growth plans will increase the value of your investment.
The opposite of growth would be shrinkage. That doesn’t sound too good does it? The middle point would be stagnation. That’s not too attractive either. So why is growth important?
One important factor is related to the penetration g
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