Typically, when someone begins their journey of researching franchise opportunities, they first head to the Internet and deep dive into a Google search. Their search is often geared around something they enjoy doing, such as a particular product they like, or an industry they think is hot at the moment.
This might sound like a reasonable approach – Google is the first pitstop on the research roadmap, and who’s going to crack open an Encyclopedia Britannica nowadays? The problem is that by simply looking at a multitude of “online storefronts” (and frequently ending up on more email lists than one would care to be on), most of these pages do not accurately represent the businesses that might truly be the “hidden gem” they are seeking.
Generally, a franchise’s marketing materials do not include enough information about what the franchise really has to offer. These materials are meant to draw the buyer in, and will focus only on the appealing aspects of the business. Not to mention that it is quite difficult to tell what will actually be required of the business owner, which for the prospective buyer, is the most important part. What kind of hours will they work? What will their role be? How much can you make at that business? What will life be like as a part of that franchise?
Begin With the End in Mind
Countless people spend a multitude of hours “researching” opportunities that they have found online, but never find a business that really fits their lifestyle, current finances, or financial goals. They get stuck in the hunt due to focusing only on what the business does, instead of what the business can do for them.
“You must start with the end in mind,” says CEO Sabrina Wall. “Clients come to me all the time with a specific franchise in mind, but the successful ones are able to look past the service being offered, and instead at the profitability.”
The Most Unlikely Business Could be the Right Fit
Sabrina Wall recalls one particular story, which is a great example of an unlikely business being the ideal fit. Take note that this couple had never even considered the industry that they ended up purchasing a franchise in.
Todd and Debbie came to my office and told me that they didn’t really know what they were looking for. Todd was a very successful Project Manager in a computer company and he made a very good salary, but he was constantly worried about layoffs due to the changing industry and recent layoffs.
Their second child had just entered kindergarten, so Debbie had time to do something part-time, but really wanted to be available for the kids after school. She had been a Human Resources Manager prior to having children, but hadn’t worked in about 8 years.
They were hoping to find something that Debbie could do part-time to start, but that they might be able to grow large enough so that Todd could leave his job. Debbie was good at managing people, but really didn’t want to have to manage inventory. .
Recession resistance was very important to them. They also wanted something that had a built-in demand and that couldn’t be replaced by changing technology. Finally, they wanted to make sure that Debbie would not be responsible for doing any selling since she felt that was a real weakness of hers.
The solution? A haircutting franchise!
That was certainly not remotely in their initial list of targets since neither had any expertise in that area. But that’s really the whole point. That’s not the owner’s role! The owner’s role in this business is to manage the manager, the marketing, and the financials. And then to go do it again in another location.
Discover your “Diamond in the Rough”
If you take away anything from this episode, let it be that you shouldn’t always go for the shiny object. Instead, take a chance on discovering a “diamond in the rough”. Keep an open mind, and don’t be surprised if you begin your journey looking for a fitness franchise, and wind up buying a mold remediation franchise. (Yes, really!)
FBA can provide you with the proper guidance to help you unearth a GOOD franchise, that is the right fit for you. Contact us today!
Watch the full episode below to hear more on this topic from Sabrina Wall and guests.
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