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Business Ownership Needs Passion

Passion_400-033115Have you heard this before? “Do what you love and you will never work a day in your life.” Or how about this? “ Find something you are passionate about and make it into a business.”

I find this to be common, but often incorrect advice. As I tell my seminar attendees every month, I love and am passionate about golf, I just can’t make any money at it. Given my skill set, I am not good enough to play on the tour or teach golf, but I do love the game and spend time playing it. I also know very successful business owners that own dry cleaners and maid service businesses. I doubt they are passionate about cleaning clothes or other people’s houses.

So if business owners are not necessarily passionate about the product or service they are selling, what are they passionate about? They are passionate about business ownership and the benefits that it can bring them; freedom, control, income, a flexible lifestyle, and a host of other things.

All of this isn’t to say you cannot make a business out of something you are passionate about. And, if you can, more power to you. It is the best of both worlds. Just remember, it is often the case that you will also become the CEO, CFO, and CMO of your business; truly a jack of all trades. In order to build a sustainable business model, owners often find themselves filing many roles, at the expanse of spending more time on the aspects of the business they are truly passionate about.
To look at this in more depth, I think this article by Gerri Detweiler https://www.allbusiness.com/entrepreneurs-spill-truth-starting-running-businesses-105262-1.html nicely explains what some entrepreneurs face when they build a business with a product or service they are passionate about.

So, if you are passionate about the prospects of running your own business, take the time to do the research and find a business that you think you will like, that matches your skill set and professional and personal goals and that can be built to provide good income, equity and that can be built to run without you having to work in it every day. The right business for you may not sell a product or service you are necessarily passionate about, but it may allow you to build a great business that ultimately gives you more time to spend on those things you truly ARE passionate about.

Now, that is something to get passionate about!

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Business Ownership: A Juxtaposition of Speed and Patience

linked_business_ownersReading this article (By Francesca Federico, co-founder of Twelve Points http://fortune.com/2016/02/06/entrepreneur-business-success-tips/ made me rethink the message I deliver in my seminars to transitioning corporate professionals and often pass on to all my clients that are about to buy or start a business.

One of the reasons, I think, that some corporate folks start businesses and have trouble running their company, is that they can’t get used to the “speed of small business”. After all, decisions and actions that need to be made within the corporate environment often happen at a snail’s pace. (I hear this a lot from my corporate clients) Everyone must buy in and approvals must be given before plans are enacted. When you own your own business, things happen faster and you must act faster.   I equate this transition to business ownership to that of the “can’t miss” college prospect that enters the pros only to find that he can’t adjust to the speed of the game. Some Heisman trophy winners and all-Americans find themselves struggling to get up to speed, while some fifth round draft choices adapt and become stars. In your own business, you need to work on building your customer base quickly to build cash flow. You need to take action on bad employees quickly, lest they poison the work environment. You need to deliver to your customers on time and fix problems that arise…..quickly. If you don’t, your competitors will. This is not to say that you sacrifice quality, fairness and thoroughness for speed. But you do need to learn to make good decisions and take action quickly, without a corporate safety net.

All that said, I am struck with the premise of this article. While I think the pace of small business, generally speaking, is fast, I am willing to admit that patience must also be practiced. No matter how fast you work, there will always be things that happen out of your control. To quote part of the article, “In order to be successful, you have to be patient, whether it’s with negotiating new business deals, communicating with colleagues, or increasing your customer base. It’s easier said than done, but it comes down to trusting your process and remaining calm through the twists and turns—both big and small. You have to accept that not every decision will go your way. Most first-time entrepreneurs get easily frustrated and overwhelmed, which is understandable given the financial burden of their new ventures. “

Owning your own business can be so rewarding and satisfying. But it isn’t easy. It takes time to get it going and it costs money. Plans must be carried out with speed and thoroughness….then, sometimes, you must wait. Confusing? Welcome to the world of business ownership.

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BEAT THE ODDS: KEEP YOUR NEW YEAR’S RESOLUTIONS

Jan2016BlogPostDid you know that only 8 percent of the people that set a New Year’s resolution actually achieve their goal*. Why is that? Research from Psychology Today has found that making your resolutions work will involve changing behaviors—and in order to change a behavior, you haveto change your thinking (or “rewire” your brain). This takes work. We have to set specific, measurable, time-bound goals and keep them front and center. If you are one of the millions of people in the United States compelled to make a New Year’s resolution, here are some helpful tips from Ray Williams of Wired for Success, to help you make them work**.

  1. Focus on one resolution, rather than several and set realistic, specific goals. Losing weight is not a specific goal. Losing 10 pounds in 90 days would be a better goal.
  2. Don’t wait until New Year’s Eve to make resolutions. Make it a year-long process, every day.
  3. Take small steps. Many people quit because the goal is too big, requiring too much effort and action all at once.
  4. Have an accountability buddy, someone close to you to whom you have to report.
  5. Celebrate your success between milestones. Don’t wait for the goal to be finally completed.
  6. Focus your thinkingon new behaviors and thought patterns. You have to create new neural pathways in your brain to change habits.
  7. Focus on the present. What’s the one thing you can do today, right now, toward your goal?
  8. Be mindful. Become physically, emotionally and mentally aware of your inner state as each external event happens, moment-by-moment, rather than living in the past or future.

Achieving your New Year’s resolution goal should be a process and you should enjoy the ride throughout the new year. Do you set New Year’s resolutions? If so, what’s your goal? If not, why not?

Finally, is owning your own business a goal for 2016? If so…call us!. We are happy to provide a comprehensive assessment and consultation…at no cost to you. This could be your first small step. Buying a business is a big decision. It takes time to decide which one and time to ramp up. We are ready to get started if you are.

Thanks to Gina Kaurich, Executive Director of Client Care Services for FirstLight Home Care Franchise for authoring this article.

*StatisticBrain.com, 2015

**Ray Williams, Wired for Success 2014

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Business ownership isn’t always the answer to the corporate job blues

Sometimes it is better to seek other employment”

“Working for myself has been great and I can’t imagine working for anyone else. BUT … that’s me! It may not be you”.  And that is how I start my seminars.

Frustrated businessman sitting on a benchI started FranNet Carolina over 20 years ago and since then, my focus has been on helping our clients find the perfect business to buy, one that matches their ideal business model and their professional and personal goals

The advice and guidance I provide comes from my experience in the corporate world plus the experience of business ownership (including several franchises) and from having interviewed over 1000 potential business buyers that come to us for advice. I feel that I can look my clients in the eye and let them know that I have been there and done that. And while my goal is to help them find a great business to buy, I also consider it my responsibility to let them know if I don’t feel they are a good fit for business ownership. And I do see people that are not a good fit for business ownership.

“Man, if I could just work for myself and make money for me instead of XYZ Corporation, I would be one happy person”. Heard that before? I have, many times. If I had 100 folks in one of my seminars and I asked them if they would work for themselves with a guaranteed good salary, most would answer with an emphatic YES! But, that guaranteed salary doesn’t exist and the truth is that I have friends, and I see clients for whom corporate employment is a great fit, and something they enjoy and are good at. Heck, there are folks out there that don’t like their job but are still better off than they would be in their own business. I often tell people that “having a job you don’t like that pays the bills is better than owning a business you wouldn’t be good at and don’t like….. and that doesn’t pay the bills”.

So, who makes the choice to buy a business? In my experience, buyers are mostly mid to senior level corporate folks that are in a job transition.   For the most part, the ones that buy businesses are the ones that:

  • Knew their transition was coming or felt that is was likely and began planning to leave the corporate world and buy their own business well before the layoff came. Now that they have the time to do the research, they are focused on buying a business to jump into and run full time.
  • Anticipate continuing their corporate career in a new job and are in an active job search, but want to begin investing in businesses that can be run semi-absentee so they can begin building equity in something and add to their net worth. If they experience another layoff in the future, they may jump into their existing business entity full time.

Other buyers may include current business owners that are selling their current business and looking to purchase another one, but we are focusing on corporate careers in this article.

What separates the buyers from the non- buyers is their desire and their ability to accept the initial risk that comes with any business start-up (investing cash, time without income, anticipated missteps, etc. ) while seeing what the business can become and how it can fit into and benefit their family and their life.  Buying a franchise or buying an ongoing business entity can help to mitigate the risk, but it will not eliminate it entirely. A common trait of most business buyers is that they become engaged in the research process and work at it steadily, almost to the exclusion of everything else, until they reach a conclusion.

Now, referencing the title of this post; who doesn’t or perhaps shouldn’t buy a business? Again looking at our transitioning clients, the ones that don’t or probably shouldn’t buy:

  • Are focused on their job search and know that it is the right thing for them, but decide they want to look at businesses anyway on the off chance they might just see something they like. The fact is, they are focused on a job search for a reason (s) and odds are almost 100% that they won’t see something that takes them off the job track.   A business very seldom becomes so obvious a choice to someone that they have to buy it.
  • May be having difficulty finding a job and think that they might as well own a business as a job replacement. The questions I always ask here is…”Why are you diverting your resources to look for a business when you didn’t want one in the first place? We advise these clients to continue looking for the right job and recognize that it may be necessary to compromise on the next position until the best one comes along.

If someone really wants, or needs a job, there is probably a good reason why and they should focus all their resources on finding that job and not dilute their efforts with a half-hearted attempt to find a business to buy. Over the past 20 years, I have had many clients like this and I generally send them away and tell them to come back if they find themselves in transition again and are really ready to research business ownership. As for the clients that are having difficulty finding a job and think that buying a business is like buying a job, well that is just not correct. Buying a business is a big deal and it takes time and money and commitment.

Going back and rereading this, I feel obligated to tell you that I am, have been and always will be an enthusiastic advocate for business ownership. I think if someone with the desire and financial means can find the right business and can be successful at it, the benefits far outweigh those of employment. That said, business ownership just isn’t right for all of our candidates. It may be a timing issue, a financial issue, a skill set issue or a spousal issue.   Whatever it is, I feel it is my responsibility to my clients to let them know what I think and advise accordingly.

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Building a Business that is Community Oriented

Every year of my past 21 years of interviewing potential business owners I often get ask Happy business people standingquestions about how to start up an insurance business. Or a candidate would tell me that they looked at a big brand name insurance company and wondered what I thought about the business.

Until recently, I never worked with insurance companies and didn’t have much information for my clients. But, I could understand what potential business owners saw in them. To start an insurance agency that sells, among other things, property and casualty products, is to start a business that requires community involvement in a big way. Insurance agencies are built by getting to know their neighbors, other business owners, chamber members and church members and building many referral partners that are happy to refer business. As many of my clients are mid to senior level executives and have only worked for one or two large corporations in their business lives, they see the idea of being involved in a business that builds from local resources as something far different than what they have done in the past and that they have a great interest in. In addition, the thought of owning a business that has weekday hours, few employees, no travel requirements, residual income and a high customer retention rate is appealing.   Insurance companies are also about providing a service that actually helps individuals and business owners, another appealing trait.

Our company is now working with a very fast growing independent insurance agency that is targeting the Carolinas for growth. With over 100 locations nationwide, a large and supportive corporate staff the ability to represent many great insurance companies and an affordable franchise business model, they will appeal to many of our clients.

During our next Franchise Forum on April 2nd here in Charlotte, we will feature this company. In addition, we will discuss other concepts in the franchise industry looking to expand within the Carolinas. We will also bring in some local resources, consulting and legal, to round out the presentation menu. To learn more and to join us, click here https://carolinafranchiseforum2015.eventbrite.com

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Zounds Hearing Center Offers New Low-Cost Hearing Aids In Charlotte

I had the privilege of working with Terry Josie over the course of several months to help him find a great business fit.   It turned out that this former V P of a prominent NASCAR racing venue found a business that he could build and use as a medium to help his clients in a very personal way.   He has recently opened a Zounds Hearing Center, a business offering high-tech hearing aids at affordable prices. And he is off to a rousing start. Continue Reading

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The Best Business to Own in 2015? Consider this!

Happy New Year Greetings 2015NI get asked all the time…… ”What is the best business to own”. The answer is, of course, it depends. It depends on your skill set, your strengths, your long term game plan for the business, what you want it to do for you and your family and your finances. Our goal at FranNet Carolina is to match folks up with the businesses that best fit them – after going through an assessment and interview process.

“No really Mike…what is the best business to own? In your opinion, of course.” Well ok, that is different. And if I am pinned down to answer this question, my answer is……a business that operates with a simple business model; that can grow significantly; that can produce a recurring revenue stream; and that can produce a good return on the initial investment and on an operating basis.

This opinion was formed years ago after playing a round of golf with a guy I had not met before. We had finished the round and were walking back to our cars and he asked me about my business and I asked him what he did. He said, “oh … I wash windows”. Cute answer. We both chuckled and I thought to myself, man he must wash a lot of windows to be able to afford the nice truck he was driving and play golf frequently. Later on that day, I mentioned his name to my wife and she said, “Oh I see his yard signs for his company all over Charlotte.” It was at that moment I gained significant insight into what makes a good business model.

THINK: Simple – Scalable – Recurring – ROI

Making the decision to get into business for yourself is a big one and should be given much consideration and thought accompanied by much research. For many, the big fear is of course, RISK. What if I invest money and time and start up my business and it fails?

There are ways to reduce your risk: One is to buy a franchise. You are buying a game plan and a system that can give you a real head start and improve greatly your chances of success. Another is to buy a business that is described by the words above… Simple – Scalable – Recurring – ROI. And of course, you can combine the two.

Simple: A business does not have to operate with a complex, innovative business model to be successful and generate good income. In fact, finding a business that performs one service and performs it well is simpler to run, less scary and probably has a better chance of producing an acceptable profit margin.  One of my favorite franchises in 2014 operated in the mosquito and biting insect abatement business. Not glamorous; but what a business! They spray suburban homes (and some commercial customers) 7 times per year between the months of April and September. Each spray takes 15 to 20 minutes. As the customer base builds, efficient routes are set up to make sure maximum revenue is generated on an hourly or per customer basis. Few employees are needed and the business operates 7 months per year. Doesn’t get much simpler than that.

Scalable: In my client interviews, I may suggest a business to them and will be told… “oh that market is saturated already.” Rarely is that the case but because you may see a lot of a certain business in your town, you may make that assumption. “Could we really put in another dry cleaner and could we grow it?” Your business needs room to grow and you may be surprised how few customers, out of the entire market, your business needs to become successful. In my mosquito abatement business example, I ask my clients if they think that, over a 3 year period, they could get a 1000 or 1500 households, out of over 250,000 households locally, to use their service. That is less than one half of one percent but still represents a sizable business. In researching the business best suited for you, always consider scalability.

Recurring revenue: It was once said that the 8th wonder of the world is compound interest. The 9th may be recurring revenue. If you could build a business with customers that bought from you weekly or monthly, and do this every year because you gave them great service, you would generate a growing income stream that would build value in your business. Predictable income streams build equity and sell for a higher price than other businesses. In the mosquito abatement business, customer retention rates have exceeded 80% nationally. You only have to replace 20% of your customers annually and you still grow each year with each percentage point gained over the 20%!

Return on investment: Whether you are starting up a franchise or buying an existing business, you certainly don’t want to overpay for getting started. Some franchises have high fees (sometimes justified, sometimes not) and some owners of existing businesses ask for a selling price that is too high. (Selling price is negotiable). You want to feel confident that your business can generate enough income to pay back your initial investment within a reasonable amount of time, say 2 – 5 years, and can generate a good profit on an ongoing, operating basis. Because of their lower start-up costs, low overhead requirements and relatively high gross profit margins, service businesses (like my mosquito abatement example) give you a good chance to accomplish both. No matter how you get into business, calculating (pro forma) projections that are realistic for the first five years of business ownership is essential to determining your ROI potential.

Simple – Scalable – Recurring – ROI

For many people, this may describe a good business concept to become involved in, especially if you have never owned a business before.

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7 Important Questions to Ask When Deciding on a Business to Buy….

Question markHaving interviewed over a thousand clients (would-be business owners just starting their research process) during the last 20 years, I try to make sure they know how important it is to think about and have answers to some rather simple and basic questions that often help to define how their personal and professional goals, their strengths and weaknesses and skill set fit with particular business models. These questions, along with our personal franchise assessment, are part of the “business model” building process we use at FranNet Carolina when interviewing a client.

A quick word about our assessment. We give it to all our candidates and then share the results with them. Our assessment has been honed over the years to provide us (and you) information about your motivation for business ownership, your core competencies, your work style and the type of businesses that fit your needs. But as good as our assessment is, it only provides half the information we need to help you make a good business buying decision.

Part of the business model building process also involves asking and answering many detailed questions that help to define the best business model for a candidate. Here, in no particular order, are seven of the most important questions we ask.

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Charlotte Area’s First Maid Right™ Franchise Uses New Business Model For Better Home Cleaning

MaidrightI recently had the pleasure of working with Kyle and Tania Price to help them purchase a new Maid Right franchise. Great couple, both possessing a solid corporate background and the skills necessary to grow a business. And, the Maid Right franchise is a growth business – the first maid service business offering the local owner a chance grow the business by bringing in franchise owners under the Maid Right umbrella and allowing them to own and be accountable for growing their own business. Kyle and Tania embody the profile of ideal franchise owners; capable, focused, growth oriented and goal oriented – all attributes needed to build a serious business with upside equity potential.   After only a few months, they have already brought in franchise owners and are rapidly expanding their household customers that need quality cleaning services.

Kyle and Tania Price have opened the Charlotte area’s first Maid Right™ master franchise, a new concept in home cleaning performed by owner-operators instead of employees. Maid Right was launched nationally by a group of investors from a major office cleaning franchise system.

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Entrepreneurship Is Local … And The Results Prove It

Like politics … entrepreneurship is local.

franchise consultantOur job at FranNet Carolina has always been to promote the power of entrepreneurship. And, from the looks of things, we appear to be doing a pretty good job. The growth of our company and the growth of the number of clients we put into business is a testament to that. This year, once again and for the fifth year in a row, we have earned a spot on the INC. 5000 list of top growth companies in the U.S. (Read more…….)

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