Combining Past Experiences for Ideal Business Ownership
Posted by dougstout in ArcPoint, Business Ownership, Career Transition, Franchising on January 19, 2012
Recently, a client and I started exploring business opportunities in the midwest. Through discussing his background, I found out his experience was pretty varied. In college, he was an EMT, then later he got into the IT field and was a business development director and a VP of sales. With companies changing ownership and with the recession, he had been downsized three times in ten years. Instead of risking another downsizing, he decided to explore business ownership.
With the combined medical (EMT) experience and sales experience, he decided to purchase two territories of ArcPoint , a mobile drug testing company. It took several months to explore options, talk with the franchisor and purchase. Within 30 days of making the decision, he was through initial training and in business. Taking charge of your future can be a new, sometimes scary step, but with the increased demand for drug testing, understanding the medical field and having a sales background, he is poised for a secure future.
Alternative Financing for Franchise Ownership
Posted by dougstout in Business Ownership, Career Transition, Fibrenew, Franchising on January 12, 2012
A recent client in the mid-Atlantic came to me recently interested in business ownership. He had over 20 years experience in newspaper sales. With the newspaper industry shrinking, he had been downsized. He wanted to use his sales experience to become a business owner.
We reviewed multiple types of business, and he decided Fibrenew was the right business for him. Fibrenew is a repair business that specializes in leather repair and vinyl and plastic restoration. With aviation, automotive and boating companies (even restaurants) clustered in this area, there would be a lot of opportunities. There was one dilemma to handle: how to finance the business.
He discussed with his brother the business opportunity he wanted to pursue and his need for cash to start the business. Once his brother saw the opportunity and business plan, he invested but is not an active owner. Funds from relatives and friends are a great way to get a business started without dealing with the stress of obtaining financing and showing proof of income/assets wondering if you will get the best rate available. With his brother’s investment, he was able to get to training and get started quickly.
Athletes Transitioning to Franchising
Posted by dougstout in Uncategorized on November 7, 2011
This article discusses how the franchise industry is moving to form relationships with athletes interested in franchising.
After the article, take a look at the link that plays my video. It showcases a professional football player who transitioned from sports to become a Sport Clips franchisee.
Turning Jocks Into Franchise Owners
Dinah Wisenberg Brin
Entrepreneur.com
For years, professional athletes have traded in their Big Leagues skills to become major players in chains such as Burger King, Dunkin’ Donuts or KFC.
Now, the franchise industry is making a move to formalize its relationship with jocks looking to turn franchisee.
The International Franchise Association and a newer organization, the Professional Athlete Franchise Initiative, plan to provide a centralized platform for pro athletes seeking to join the industry and for franchisors wanting to connect with athletes.
Related: Nine NFL Stars Turned Entrepreneurs
The IFA and PAFI say they’ll develop an educational certificate program for sports pros and summits for both athlete-franchisees and chains.
“Professional athletes are becoming more conscious about the longevity of their careers and realizing more effort should be placed into planning for a professional life beyond sports,” PAFI founder and Executive Director Michael Stone said in a statement.
Stone, an entrepreneur and former NFL player, said the new group’s approach is to “educate the professional athlete community on the specific value proposition that the franchise model provides.” Franchises have long been considered a “hands off” way for pro athletes to go into business, becoming more involved once they retire from sports.
Stone’s comment underscores a recent statement by Milwaukee Bucks forward Drew Gooden, who, in announcing plans to become a Wingstop franchisee, said the NBA lockout had given players occasion to think about their future and look for new business opportunities.
Throughout the years, a long line of pros have become franchisees for numerous chains, including UPS store, Jamba Juice, Coldstone Creamery and a number of fast-food or casual-dining operations.
Three former athletes are scheduled to speak during the IFA’s annual convention in Orlando in February. Tim Biakabutuka and Tyoka Jackson, former NFL players who now own Bojangles and IHOP franchises, respectively, and former NBA forward Jamal Mashburn, an ex-NBA forward who’s bought into the Papa John’s and Outback Steakhouse franchises, were all in their 20s or 30s when their pro sports careers ended.
IFA President and CEO Steve Caldeira said the industry, with more than 825,000 franchise establishments, welcomes the opportunity “to bring more professional athletes into our ranks.”
Here’s the link to my video:
http://www.greenvillehd.com/greenville-sc-jobs/The-Entrepreneurs-Source/
When Researching a Franchise
Posted by dougstout in Business Ownership, Career Transition, Franchising on September 30, 2011
Here are a few thoughts when researching a franchise:
1. Get multiple names of franchisees from the franchisor/area developer. One or two names is not sufficient. Get lots of names. Everyone is going to have a different experience, and you need to hear as many perspectives as possible.
2. Examine the good and the bad: Many franchisors may provide names of their top performers for you to meet and learn about their success with the business. Unfortunately, not everyone succeeds. You need to talk to those people, too. Are they struggling because they aren’t following the model? Is there a chance they weren’t provided with enough training? Is the model recession-proof? Think through all scenarios.
3. Go onsite: Phone calls aren’t enough. Site visits are key. See how the operation works, how do the employees like working there? Is this an environment where you can work or can manage people for the next months or years?
Make sure you research as much as you need to in order to feel comfortable…This is your future potential business!
New Franchising Concepts to Consider
Posted by dougstout in Business Ownership, Franchising on September 12, 2011
There all kinds of great, new franchising concepts out there! Restaurants, quick service, retail are all the types of franchises that come to mind for most people. Here are some of the unique concepts I’ve researched recently:
Pick-up and drop off doggie day care model: Instead of dropping off your dog at a pet day care facility where it may not be convenient, there is a new model out there that will pick up your pet, take them on field trips, play with them and drop them back off when you are ready for them to come home. That model defines convenience for pet owners!
Restaurant and child entertainment center: How many times have you comprised an adult meal because you needed to take the kids somewhere they could be entertained and have kid-friendly food? A new franchise model is out there that caters to children’s food, children’s activities (games/playground) and serves health-conscious entrees for adults. Does it sound too good to be true? It’s not.
Moving residential recycling business: When you move, what is left over in your garage for weeks after you unpack? BOXES. A new franchise model brings a large recycling container to your home for two weeks. As you unpack, you drop the boxes in the container. After two weeks, when the bulk of your unpacking is complete, the container is removed from your property. Very convenient, very “green”.
Contact me to learn more about these models or other unique franchise models that are now available.
Money Back Guarantee for Starting a Business
Posted by dougstout in Business Ownership, Franchising, Molly Maid, Mr. Handyman, ProTect Painters, Service Brands International on August 15, 2011
Potential franchisees worry a lot about failing. What if I don’t make it? What if I’m not cut out to be a business owner? What if the model I choose gets hit hard by the economy?
These are all reasonable questions to ask, but don’t worry. When talking to clients, we go through a lot of questions and assessments to make sure the model you choose is the best for you. Even before we get to those questions, we determine whether you should be a business owner or not.
But here is good news: some franchises now have a money-back guarantee.
Service Brands International (SBI), parent company of Molly Maid, Mr. Handyman and ProTect Painters (link to all of these), is offering a money-back guarantee to new franchise owners. The entire franchise fee would be refunded if $150,000 in gross sales was not met within the first 18 months of operation. This gives the business owner an out if things are not going well.
The franchise fee of $19,900 for Mr. Handyman and the fees of $14,900 each for Molly Maid and ProTect Painters will also be covered if the gross sales figure is not met. The company created the money-back guarantee because they are confident they believe in their operating models. With the economy still shaky, many people are nervous about starting a business. The money-back guarantee helps to calm their fears.
The current offer expires March 31, 2012 and may continue past that date.
To see the full article, click here:
This definitely sweetens the deal for starting a business. In addition to having a proven model to follow with long-time brands, now there is a safety net in case something were to go wrong during the first 1-2 years of operation.
Spring Green Video Segment on Fox
Posted by dougstout in Business Ownership, Career Transition, Franchising, Spring-Green on August 2, 2011
Check out this video recently on FoxNews Live, featuring a Spring-Green Lawn Care Business Development Manager.
More information on Spring-Green can be found here.
It’s No Longer All or Nothing…Part-Time and Semi-Absentee Ownership
Posted by dougstout in Business Ownership, Career Transition, Franchising, Sport Clips, Uncategorized on July 25, 2011
In my last post, I discussed people needing to bridge the financial gap with people living longer and wanting to retire from their current job.
A lot of people think you can either have a job or you own a business. Can you have a little of both? Yes.
Have you heard of these two models?
Semi-Absentee Ownership
Think of a Sport Clips model (that is just one example of many). Sport Clips, a haircare franchise that targets men and boys, does not require their owner to be in the store and working 40-50 hours per week in the business. Yes, if you end up opening many stores, start selling territories to franchisees, etc you will probably end up doing this as a full-time business. However, many people buy a semi-absentee ownership model to transition from a job into business ownership or for one spouse to work in the business part-time (think of an empty-nester wife), while the other spouse still works full-time at their job. Sport Clips franchises have managers to run the day to day of the store.
Part-Time Franchise Owner
The Entrepreneur’s Source (franchise and business ownership consulting) is a great example of a part-time model. Friends of mine, a married couple, both have jobs and also work in their Entrepreneur’s Source business about 15 hours per week. Their work with The Entrepreneur’s Source helps to fund their retirement savings. If they decide to ramp up and work in the business full-time, they can, but part-time is helping their retirement funds just fine.
Message me if you would like more information on these types of businesses or business models.
Do the Math…Bridging the Gap
Posted by dougstout in Business Ownership, Career Transition, Franchising on July 21, 2011
You did the math, and now you have it all planned out. Around age 60 to 65 you will retire and do whatever you like.
Then 60+ happens, you retire and then it hits you.
You may live a long, long time.
Your standard of living, if you keep it relatively the same as before, will drain your savings in about 15 years. And you’re hoping you will live to be 90+. What to do?
Every week, I bring on new clients who are in similar situations. They are healthy, ready to retire and move onto the next stage of their life, but they may need another 10, 15 or 20 more years of income so they don’t have to completely adjust their standard of living. And many times, my clients realize they are bored not working.
Many of these clients look at franchising and become business owners. They use the some of the skills they gained during their career to build something they can keep for several years or build a legacy for their families. Many of these retired and now new franchise owners only choose to work in their business part-time. That way they can still travel, spend time with family and continue to build the nest egg.
Have you done the math? Is the age you want retire really feasible? Instead of staying in a job, think outside of the box as to ways you can retire and still make the most of your time and money in the next phase of your life.
In my next post, we’ll look at different franchise models that appeal to people who may not be interested in full-time business ownership.
From Tires to…Massage?
Posted by dougstout in Business Ownership, Career Transition, Franchising, Hand and Stone Massage Spa on June 27, 2011
You never know where your business (or the sale of your business) will take you.
Rick came to me after he sold his tire business to a competitor. He enjoyed business ownership and was ready to look at ownership again. This time, he wanted to take a look at several options/roles within franchising:
- area development (selling franchises in a territory)
- single unit ownership
- multi-unit ownership (several locations within a territory)
We looked at several models and roles in-depth. Rick landed as a multi-unit franchisor for Hand and Stone Massage Spa. His territory is Greenville, South Carolina, and his first store will open later this year. He decided on this model and this role for several reasons:
1. Massage is a strong repeat customer business, and Hand and Stone offers monthly “membership” packages to keep people coming back in the door. Recurring revenue is always a good thing!
2. Hand and Stone is a good in-between model for massage spas in this territory. There are very upscale locally owned spas and other lower-cost franchise brands in the area. Hand and Stone fits right between to capture a strong market share.
3. Once his first spa is up and running, he can begin making plans to open his next location.
So if you are in the tire business, you never know, you may not end up in the tire business!
My Social Networks
