Franchises are today’s hottest entrepreneurial opportunity — provided you know what you’re doing. Let’s say that you are seriously looking into buying a franchise. So, where do you start? This is not an easy question since there are more than 3,100 franchise concepts to choose from. Most people, I have found, regardless of how intelligent or experienced they may be in other businesses, don’t have a clue about how to go about investigating franchise opportunities — or — begin with a host of misconceptions and incorrect assumptions.
I invest most of my professional time coaching and educating people on how to become savvy franchise investors, and I love the work! I’ve come across some common myths that may be helpful to bust!
Myth #1 Buying a Franchise is like Buying a Job
Some people are, in fact, looking for a single unit location that they will open and manage. There are some great opportunities here, and, even if someone “buys themselves a job” through a single–unit franchise, unlike a job, they would be building equity and an asset while earning income. Although you may choose to work in your business, a growing franchise is far more lucrative and secure than a traditional job. Second, franchising offers a variety of options that fit the skill set, financial goals and objectives of any level investor. Area development, multi–unit and master franchising are all vehicles to build significant wealth through growing large and/or multiple markets. Many offer semi–absentee ownership as well, and transitional plans so that the candidate can keep his job while building the business.
Myth #2 It’s Too Expensive
It’s unfortunate how many would–be entrepreneurs simply don’t even take a serious look because of this myth. Franchises are more affordable than most people think and there are many funding options available. You may be surprised to find out that over 30% of the 3,100 franchise opportunities in the US today have an all–in start–up cost of under $100,000, and 70% have a franchise fee of under $30,000. Professional help is available to explore funding options at no charge to you.
Myth #3 Do What You Love and the Money Will Follow
This has to be the most misunderstood myth in franchising today. Many people try and monetize their hobby or interest or go out to find a franchise in an area “close to their heart” and end up completely mis–fit to the opportunity. Why is that? I help my clients understand that, yes, we want a product that is reliable and useful and popular… BUT you do not have to love your product. You have to know it is a good product. You have to love the idea of being in business for yourself, being an owner, being in charge. You have to have a passion for growth and customer service and commerce. We can take your skills and competencies and find an opportunity that they will easily transfer into. No one is limited to their previous line of work, experience or interests. A skilled franchise advisor can enlighten you and educate you to the vast possibilities to add value, generate income and build wealth through a solid franchise opportunity.
Mariel Miller is an accomplished franchise executive, organizational effectiveness consultant and speaker. With a unique blend of 25 years experience in the franchise environment and an expert understanding of high–performance talent engineering — she is able to combine a research–based understanding of people, performance and profitability for some of the most recognized names in franchising today. Mariel shares best practices in assessing and measuring high–potential individuals and creating high–performance cultures in organizations large and small. She serves as a thoughtful consultant to entrepreneurs, start–ups and people in life and career transition.