Home-Based Franchises : Pros & Cons

You may have heard about home-based franchises, and are wondering if investing in and starting such a business is something you might be interested in. The information in this article can help you in your decision, by presenting both sides of owning a home-based franchise.

First, let’s look at the word “franchise”. You probably already know that businesses such as nationally and internationally known restaurants, auto repair chain stores, and even some sports teams, especially professional ones, are franchises.

The person or people who operate or want to operate these types of businesses paid a fee and entered into a formal agreement with the owners of the franchise, or the “franchisors”. The business owners or “franchisees” can now use the franchiser’s trade name in their business, and can also receive help or support from the franchisers.

Now that we know what a franchise business is, let’s look at the differences between a home-based franchise and a regular franchise. A home-based franchise is operated from your home or a building on your property. You can also operate from a building that you own, but that may not necessarily be located in the same place as your residence.

A regular franchise may have a specific type of building, or may require that the physical location have a distinct appearance or even a unique atmosphere. In other words, there can be no question as to which franchise you are affiliated with.

There are some advantages to operating a home-based franchise. These include, but are not limited to the following:

You do not incur additional expenses from having to rent or lease a separate building.

You do not have to commute to your franchise location. It’s in your house or on your property, so you’re already there.

The whole family can be involved. Young children can stuff and seal envelopes and affix postage (if you don’t use a postage meter), or help you separate orders and prepare them for delivery. Older children, especially those in middle or high school can help with clerical duties.

As with other things, however, a home-based franchise does have disadvantages.

You’re never “away” from your franchise, even if you’re not actively working. Reminders of your business are all around your house.

You may have to have your residential property rezoned in order to operate a home-based franchise.

You may have to purchase business licenses, pay operating fees, and incur other expenses that come from operating a home-based franchise. Further, your property taxes may increase due to your business being located in your home or on your property.

You may have to make changes to existing structures in order to meet building code regulations especially if the franchise involves food preparation or a similar operation.

Why Do You Want to Own a Franchise?

An inquisitive child never seems to stop asking the question, “But, why…?” almost to the point of absurdity. As adults we sometimes need to remind ourselves of the value in this soul-searching methodology when it comes time for critical decision-making, such as “Why do I want to have my own franchise business?”

Many people who go through this process of wanting to own a business start with valid reasons. Perhaps you see yourself in one of these scenarios, or something similar:

• You want to transition out of an unhappy situation with your career progress.
• You are experiencing a deteriorating relationship with your employer or supervisor.
• You may have actually lost your job, as is all too common these days.

Therefore, it is only natural for you to gravitate towards the desire to own a franchise. Now that you have presumably determined the basic rationale, it is time to look in the mirror and ask yourself a few more deeper, thought-provoking “why…because” questions and answers:

• Because being a franchise owner hopefully will mean better income for you?
• Since you want to advance your lifestyle to the next level?
• Because you can be your own boss and provide a different change of pace?
• So you see yourself as wanting to grow over the long term?

Let’s examine each of these tough questions in a little more detail because they are all well-founded. Also, they might be able to confirm that your personal desires and career needs will match the benefits of owning and running your own business.

Most franchise owners enjoy the benefit s that result from a proven business model. Thus, earning a six-figure income can be a very good incentive, but remember that there are no guarantees in life. Also, it is important to realize that often statistics show that it takes a few years of hard work before you can realize the fruits of your labor.

For some, income and lifestyle go hand-in-glove. For others, working from a home office, being with the family, or getting away from shift-work are other key factors for wanting to run a franchise.

In addition to training provided by a franchisor, you should have some practical business knowledge and experience. Being the “boss” often requires a lot of personnel responsibility and large doses of “the buck stops here” attitude.

Owning a franchise can be very rewarding financially as well as personally. If you are a goal-setter and an achiever, franchising can offer opportunities that will challenge you to address and overcome.

While none of these reasons or statistics stand totally infallible, they do underscore the importance to contact an expert franchise consultant for guidance in this critical business decision.

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What to Know when Working with a Franchise Consultant

You’ve convinced yourself that owning a franchise business is your goal. Now you are wondering, “Where do I start the process of finding the right one for me?”

More than likely, your best resource may not your brother-in-law, or old high school buddy or golf partner, but rather a professional franchise consultant. It is the franchise consultant’s role to make you aware of the multitude of opportunities and to match you, the client, to the best selections of companies that fit your objectives, interests, geographics and wallet.

Stop for a minute and think how you would go about trying to weed out your franchise choices, contact all of those companies and complete all of your franchise due diligence. The internet is a great tool, obviously, in your search, but still, you have your work cut out for you. Days, weeks, months of research and frustration could lead to overwhelming disillusion in your quest for the right opportunity.

Since the consultant is acting as a matchmaker, consider this role to be somewhat like that of popular, on-line dating sources. Another way to look at franchise consultants would be as an executive recruiter. The consultant is acting similarly, that is, trying to arrange a marriage between two parties that have similar interests and goals, and who want to get involved in a long-lasting, beneficial relationship.

Furthermore, the franchise consultant can also introduce you to other resources that you will likely need, such as attorneys, accountants and financing sources. Let’s recap why it is important that you find and use a good franchise consultant:

• Works for you, gets paid by the franchisor
• Provides a wealth of knowledge and experience
• Knows industry trends
• Has awareness of markets, regions
• Saves you time and money researching
• Offers insight into franchises that match your interests, goals and finances
• Provides referrals to other key resources

Another good reason to find a franchise consultant to help you in your search is that the consultant can connect you with literally dozens of potential franchisors. Simply trying to work one-on-one directly with a company franchises its units limits your choices and consumes an extraordinary amount of your time.

Bottom line is that you have come to the right place—FranFinders. When you work with us you receive the benefits of knowing that we are in your corner:

• Professionally trained consultants
• No cost or obligation for you
• Contacts with hundreds of major franchisors
• Trustworthy source of valuable insight in franchising
• Simplification and time optimization
• Authentic commitment to help you succeed

Contact a FranFinders expert Franchise Consultant today to meet us and decide for yourself how we can help you fulfill your dream as a franchise owner.

2010 Snowstorms in Atlanta are Good for Small Business.

Snowstorms in Atlanta and the Southeast are Good for Small Businesses.

With the down pouring of flakes, cities like Atlanta in the Southeast seem to freeze-up. Consumers likely to go to the mall or run a few errands are deciding to stay safe and keep inside.

How does this effect the local business economy? Well, if you own a small, home-based franchise, it does not effect you at all. By eliminating the need for customers to travel to a location, home-based businesses have an advantage during stormy weather. They can continue normal business operations without sacrificing sales.

Additionally, with consumers stuck indoors during a snow storm, it gives them additional time to “surf-n-shop” the internet. Having a retail-based retail concept would capture this “captured” market.

Finally, if roads are unsafe for traveling, your home-based business can stay active. As the owner, you would not need to get out and travel. Unlike a route owner or delivery service.

For the home-based small business owner, during Snowstorms in Atlanta and the Southeast, the phrase that pays is, “Let it snow, let it snow, let it snow!”

If interested in finding out more about small business, especially franchises, visit www.FranFinders.com.

Do You Have What it Takes to be a Franchise Owner?

So, you want to be a franchise owner? Sounds ideal:

You’re the boss, sitting back with your feet on the desk, big car parked outside, well-tanned from a vacation in the islands. Ehhhhhhh!!! Wrong answer.

Wake up from your daydream and turn from reality television into a real vision for your life and career. While you recognize the advantages of owning a franchise, e.g., turn-key operations, strong brand recognition, better success rate, prestige, etc., you need to look at the bigger picture.

Take a glance at these intangible, key decisions and issues you’ll have to face about yourself and your personality:

• Are you self-motivated?
• Are you willing to roll up your sleeves and pitch in?
• Do you have good people skills?
• How well do you deal with the public?
• How do you feel about constraints within the franchisor system?
• What is your business background?
• What are your overall strengths and weaknesses?

Whether you’re a professional athlete or a weekend warrior, coaches will tell you to picture in your mind’s eye hitting the ball, or holding the trophy after winning the game. It is all about motivating yourself to be the best that you can be. Do you have the desire, the will to win? If so, you’re on the right track.

Picture this scenario: a couple of key employees call in sick on the day of a major sales push for your business. Hope you’re not afraid of getting your hands dirty in the day-to-day operations because if you are, your other workers may resent you and morale may suffer, and you may also incur the wrath the franchisor. Being a franchisee does not mean just pushing papers and going to make deposits at the bank.

Ditto when dealing with angry customers. How are your tolerance and diplomacy skills for handling complaints, because the buck stops with you?

Remember you’re purchasing a pre-packaged system based upon a successful business model. You may have some leeway in certain aspects of your franchise, but you still have a “boss” at corporate headquarters who wants you to succeed - their way.

Besides understanding inventory, receivables and payables, marketing, etc., what about leadership, handling personnel issues, motivating others? You don’t need a Harvard MBA, just be well-grounded in basic business principles. The franchisor will help with training, but you’ll learn plenty with on-the-job training.

Finally, take a look in the mirror and be honest with yourself: “Is this what I really want for myself and my family? Do I have the stick-to-itiveness to make my vision turn into a reality? Am I willing to sacrifice and understand that ‘the race goes not to the swift,’ but be able to delay quick gratification in the short run?”

After reading this, if you believe you have what it takes to be a franchise owner, then take the next step and contact a FranFinders expert Franchise Consultant.

Seven Things to Consider Before Leaving Your Job

ABC News recently reported that the unemployment rate was 9.4 percent, the highest level since August 1983. Don’t become a statistic.

Perhaps you have been working for your company for many years, maybe you play a vital role in growth and expansion, and quite possibly you have earned the respect of everyone around you. While all of those descriptions may be accurate, the larger truth is that in this economy, no one is safe.

The United States Department of Labor, Bureau of Labor Statistics, reported that 2,712 employers conducted mass layoffs in April 2009, resulting in the loss of 271,226 jobs. In one month! In one month more than a quarter of a million people went from gainfully employed to the unemployment line. Why allow yourself to be next? Why become the next victim of this vicious and uncaring economy?

You don’t have to be a sitting duck. In fact, you could turn around tomorrow, realize the American dream and become your own boss.

According to a 2007 BusinessWeek article, nearly 500,000 people create new businesses each month and while many of them fail, a great handful of them go on to incredible success, even in a recession. While at first glance it may seem inauspicious to start a new business venture during failing economic times, studies show that a recession can actually be the ideal time to launch a company that recognizes the state of the economy, identifies a market need and addresses it. Companies like Burger King, International House of Pancakes, LexisNexis and Trader Joe’s all started during economic slumps, and all have prospered.

Embarking on a new business venture, whether during economic prosperity or recession, means hard work, long hours and a lot of what often goes overlooked: planning.

According to the Small Business Administration (SBA), two-thirds of new businesses survive at least two years and 44 percent survive at least fouryears; that’s a 22 percent decrease over two years. Why do so many fail? The number one answer of various experts is improper planning. Business planning is crucial to business success. Before starting a business, you need facts about your industry, customers and potential profitability. Those who start successful businesses often spend months, or even years, conducting research and creating business plans.

So what happens when you don’t have the time or attention span for all that research? Thankfully, you are not relegated to life as a nine-to-five worker-bee. One option allows you to go out on your own and become your own boss without the research hassle: franchising.

When you buy a franchise business, you take a much smaller risk than when you start a business from scratch because the franchisor has already done all the research, set the plan in motion and seen franchisee’s succeed using their business model. Franchising gives you all the freedom of being your own boss, but still offers you the guidance and assistance you need. In most cases, you can start out with a small financial investment and grow your business over time. There is also a much smaller chance you will be stuck without a pay check for too long, especially because some franchises offer you a guaranteed initial customer base.

While buying a franchise business may often seem like the easy answer, there are things to consider before embarking on your journey.

The following are seven key items to mull over before leaving your job to become an entrepreneur:

1. Evaluate Your Current Position. Often, when a person is about to be laid off there are signs. If the company is trying to phase out your position, you will likely be given less work, brought into fewer meetings and left out of conversations that discuss the future. If you were passed up for a promotion, think about who got it. Is it someone younger and less experienced who will do the job for less pay?

Additionally, consider your job satisfaction. Are you happy with your position in the company? Are you satisfied with your salary? If you are unsatisfied that may come through in your attitude and work performance and your company may opt to lay you off rather than give you what you want, especially if they are going through tough financial times.

2. Take A Hard Look At Your Finances. Starting a business, whether it be a franchise or a brand new venture, will require some start-up capital. Do you have money in savings? Also, consider whether you can afford not to have a bi-weekly paycheck for a few weeks or months while you set your plans in motion. If not, try saving as much as you can now before you leave your job and steady income.

When considering franchising, consider the lessened financial risk. Since the franchisor already has a proven model for success, you are not trying to reinvent the wheel with each decision, you will simply be following what others before you have successfully completed. Additionally, a franchisor may require a smaller financial outlay and allow you to grow your business over time.

3. Get Your Family’s Buy-In. This step is all-important because as any entrepreneur knows, you must have support to be successful. Thoroughly discuss your ideas with your spouse and come up with a plan of action together. Remember, your family members will be stakeholders in this business too. Whether they will be directly working for the company or not, they will be directly affected your success. It is always a good idea to get the family’s approval when starting on a new course; you will need their encouragement when times get rough.

4. Speak To A CPA. There are several items that can complicate leaving your job. For example, if you have a 401K or stock options, you will want to talk to a professional about how they will be affected if you terminate your employment. It is a good idea to talk to an independent CPA to discuss any potential losses and the best ways to extricate yourself. Remember, you do not want to discuss this with your company’s HR department unless you are ready to tip them off that you will be leaving.

A CPA will also be able to tell you exactly what expenses you should be keeping track of now that you intend to open your own business. It is best to get this advice from the very beginning so that you don’t have to go back and attempt to organize old information.

5. Look For Alternate Health Insurance. Something that can often complicate termination of employment is health insurance. Are you on the company’s health insurance plan? If the answer is yes, you may want to check out alternatives before you leave your job. If your spouse can add you to his/her company plan, that may be the simplest solution. If not, you should start researching other health insurance options. This is another expense you must consider when starting your own business.

6. Consider A Business Partner. Two heads are better than one. As are two wallets, two sets of hands and two sets of skills. Starting a business can be a huge responsibility, both financially and logistically. Adding a business partner can be just the thing to help you be successful.

If you don’t want to go into business alone but don’t like the idea of a partner, franchising may be right for you. Typically, franchising offers significant assistance by way of training courses and support staff that can be indispensible for a first time entrepreneur. When you do well, the franchisor does well and they will do everything in their power to ensure their success.

7. Contact a FranFinders Franchise Consultant. When beginning your search for the right franchise, the multitude of options can seem overwhelming. After weeks or months of sifting through information, you may end up with more questions than you started with.

The best way to ensure you are getting all of the information you need is to speak with a franchise consultant who can guide you through the process and answer any questions you may have. Much like an executive recruiter, a franchise consultant matches qualified candidates with compatible franchise concepts, meeting the needs and objective of all parties. The franchise consultant will ask you about your experience and qualifications and come up with a list of potential franchises that may be right for you. That list will then be narrowed down based on the amount of initial capital you wish to invest, your geographical location and any other requirements you see fit.

For example, you may be looking for a franchisor that offers in-house financing, one that offers health insurance options to its franchisee’s or perhaps you are looking for an opportunity that offers collection and billing assistance. A franchise consultant can find you all of that information, instead of you spending weeks digging through piles of advertisements, websites and marketing materials.

Furthermore, seeking the help of a franchise consultant will cost you nothing. Franchise consultants are paid by the franchisor and will never charge you a penny. There’s nothing to lose, but so much to gain.

For those of you sitting at your desk, waiting for the hammer to drop and hoping it doesn’t hit you, consider these seven items and decide if now is the right time for you to make a move that will change the course of your life and your career forever. Many people have dreamt of firing their boss, but only a small number of people actually do it and succeed at it. Franchising offers you the opportunity to take a proven model of success and apply it to your business.

Put your career in your own hands. Contact a franchise consultant, today.