Top 10 Questions: Will My Franchise Make Money?

Posted by Jim Otto on Wed, Apr 12, 2017 @ 12:04 PM

makemoney.jpgI know what you're thinking. If I buy a franchise, will my franchise make money? Here are 10 tips to get through the "clutter" of franchising information and increase your odds of franchise owner business success!
 
1. What do I Enjoy: Make sure you sit down and analyze yourself. Choose a business that you can see yourself doing, enjoying and excelling at. 
 
2. Avoid Fads: Make sure the business you choose is sustainable, creates a reoccurring revenue model and is a valuable and needed service.  Will this business be around in 5 or so years?
 
3. Be Wary of Sales: Franchises that have lots of existing units for sale could be troubled. If it's such a great business to get in why are people getting out? Check websites that list franchises for sale.
 
4. Use a Scam Filter: Google the name of the franchise and the word "scam". This may lead to complaints. All franchise systems have a few unhappy franchisees, the key words here is "a few"!
 
5. Make Sure the Franchisor is Running the Concept: Yes, you heard me correctly, many franchisors are not currently running their own concept and some have never run the concept! If the franchise needs to test market a new product or service, then guess who the guinea pig is? 
 
6. Happiness Counts: Franchisors will almost always guarantee you great service and support. Call the franchisees, if they aren't happy, chances are  you probably won't be either, and vice- versa.
 
7. Is the Business Model Sustainable: I already talked about avoiding fads but that is not what I am talking about here. I am talking about spotting consumer trends and if the concept will pass the test of time or can it be replaced by something like the intranet? (think video sales)
 
8. Study the FDD: Item 7, the cost to build out and Item 19, the financial performance representations are important, but so is the Item 20 which will give you a history of how many units have closed. If you are one who really hates surprises, then look at the Item 6 and what additional fees you may be paying. 
 
9. Go to Discovery Day: In my humble opinion the best money you will ever spend is before you buy a franchise. Did you meet your spouse before you married them? You are entering into a business agreement with someone who is agreeing to give you the training and support you need to succeed, so go meet these people and see if they are the kind of people you want to have a long term relationship with. 
 
10. Run the Numbers: You know, I am amazed how many people never run the numbers. You should be able to look at the item 19, or call the franchisees, and get enough numbers to run a proforma. Make sure you don't have unrealistic expectations and understand what you will make if you own a successful location.
 
I hope these tips help and you can become as successful as our franchisees at Shear Madness Haircuts for Kids! Meet some of them by reading one of our recent articles (right here) that shares a little bit about who they are! Additionally, Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: buying a franchise, franchise opportunity, successful franchisees, nourishing success, franchise research, evaluating a franchise, franchise ownership, business success

Generation X and Franchising

Posted by Matthew S on Tue, Apr 11, 2017 @ 16:04 PM

GenX.jpgBorn between 1965 and 1980, Generation X is sometimes considered by some to be an "overlooked" generation in the face of Millennials and Baby Boomers. However, with many Gen X'ers now in their late 30's and 40's, many consider this demographic to be amongst some of the most capable and qualified when it comes to small business ownership. Check out the following four reasons why Generation X may have the potential for greatness when it comes to franchising!

1. Generation X has the experience to succeed. Many people belonging to this age group have been through a variety of business experiences, and have often times had to learn to be quick on their feet in order to stay ahead of the crowd. For example, during the recession of 2008, many had to pursue new training or new business opportunities as a result of lay-offs. Additionally, throughout their career, Generation X has witnessed significant change in the business world - what with the rise of social media, the internet and utilization of different marketing techniques in order to succeed. They may have an acute and insightful perspective on what works, and what doesn't. 

2. Generation X is well established. Investing in a franchise or building your own small business requires good financial stability and experience. Often times having worked at saving for around 20 years, coupled with the uncertainty of social security or corporate retirement benefits, Gen Xers have had to sometimes think outside the box about their own financial futures. Many within this age range also have a working spouse, which adds to the financial stability (and capability) when it comes to franchising and small business development.

3. Gen X relates well to both older and younger demographics. Having grown up in an age when the internet and social media wasn't around, Gen Xers have often times figured out how to develop solid relationships with older people, while also connecting with younger people. For instance, the people of this demographic didn't have facebook or twitter in order to connect with their friends - they actually had to speak with others on the phone or in person (just like their baby boomer parents). But Generation X also came of age during the internet revolution, and understands how to effectively use social media to communicate as well. As a result, Gen X may posess a keen ability at relating to multiple generations of customers and staff.

4. It's all about the freedom! Every generation is known for shaking things up, and Generation X is no different. Often times having grown up with two working parents in their household, and having to come home from school to an empty home, Gen X learned from an early age how to take care of themselves. As adults, they now enjoy that freedom and flexibility in work life too, and are often looking for opportunities to escape "working for the man". But not only that, they - like many Millennials too - are looking for meaning in their work, and the freedom to make decisions and benefit from their talents and experience. Franchising can be one of the more ideal pathways to achieve this goal, as using an established system helps ensure business success over the uncertainties of building a business on your own.

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business that provides a positive experience in helping children and their families? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: franchise buyers, franchise opportunity, franchising, franchise ownership, business success, business ownership, Generation X

4 Keys to Business Success!

Posted by Matthew S on Tue, Apr 11, 2017 @ 16:04 PM

4keys.jpgWhile running your own business can be a difficult challenge, it can also be one of the most rewarding experiences that life has to offer! Not only does it take being able to understand market demands, but it also means having a viable small business plan (a process and product in place) that will support the business, as well as provide an income for the owner. While many potential business owners may have a great idea for a business, business growth and long-term success requires being able to be focused, disciplined and at times - an out-of-the-box thinker! Below are 4 keys that can help your business or franchise location build success.

Location - You might have the most amazing concept for a business or franchise, but if it's located in  the wrong area - it's just not going to work. Or, it might not work as well as it could in a more ideal area. So be sure to do your research in finding out which areas in your community are most ideally suited for your concept. For example, if it's a business that is geared more towards children, look at the demographics of how many young families are in a particular area. Likewise, if it's a concept that's more for retired people, you'll want to find an area where there are a lot of retirees who might be interested in what it is that you're offering. Additional considerations might be trying to gauge how much people might have in "disposable income" in a particular area. A community that doesn't have a lot of extra money to spend may not be interested in spending money on whatever it is that you have to sell.

Marketing - It almost goes without saying that one of the key components of any successfully run business is the strength of their marketing strategies. Marketing is what helps bring customers through your door, and can be accomplished through everything from more traditional methods (like print ads, handing out flyers at parades, using coupons, and word of mouth marketing) to more modern methods (like social media marketing, blogging, and running an effective, up-to-date website). Many business owners might also find success in working within the community through a local charity effort, as more and more customers are finding value in businesses who sincerely engage in some kind of non-partisan efforts to help better the community around them.

Attitude - The attitude, or "feeling" that your business gives a customer can largely be helped or hindered by the attitude of your employees. Good employees who are also happy are more willing to help customers, as well as be more loyal and engaged in doing a good job for their employer. On the flip side, employees who are generally unhappy or have bad attitudes about their work are more likely to pass this feeling on to customers. So it's important to make sure that your employees have good attitudes, and to try to help facilitate the positive atmosphere at your work place by giving awards for good work performance, hosting a holiday party, having a clean breakroom and restrooms for employees to use, and maybe offering employee discounts for services that your business offers. 

Management - An important consideration when running your business is the strength of your manager or management team. While you may not be able to be physically at your business at all times, it's still important to be aware of what's going on through your managers. A great manager is able to share with you what's going on, as well as help maintain a great atmosphere for employees and customers alike. For example, managers can help you know the attitudes of employees, whether they are showing up for work, and if they're taking overly long breaks. You'll also want to keep close attention on the possibility of an employee who might be "dipping into the till" through the careful monitoring of receipts, record-keeping software, or even video monitoring equipment. If any of these areas are a problem, be sure to address them quickly either through meeting with the employee in question, issuing a warning, or possibly even a professionally conducted dismissal from the business.

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about our franchise opportunity, or about small business marketing, great marketing strategies, resources for small businesses, how to grow your small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: Business Tips, small business how-tos, growing a small business, franchising, franchise growth, franchise ownership, business success, franchise success, business ownership

Why Your Franchise Business Doesn't Make Money

Posted by Jim Otto on Mon, Jan 16, 2017 @ 12:01 PM

Notmakingmoney2.jpgAs the Director of Franchising here at Shear Madness Haircuts for Kids, one of the first questions I usually get asked is, “How much money can I make?” My response is always muted because the FTC doesn't allow us to answer that question. However, for those of you reading this who are new to franchising, you can find the answer to that question in the Disclosure Documents in Item 19 that you receive from a prospective franchise. Also, some franchises may choose to disclose those numbers but have the right not to, so that really depends on the franchise you are looking at. But at the end of the day, my typical response is to answer a question with a question, which is, “How hard are you willing to work?”

Most franchisors will tell you that the biggest variable in any franchise system is the owner operator. Take Shear Madness Haircuts for Kids as an example. The store was opened by Paula Thurman in 1997. Since then, Paula has run the concept in many different economic environments, all kinds of weather and all kinds of major events. Through it all, the store has made money! But the bottom line is it still took hard work and perseverance. From moving the location three times to, to staffing the store properly, to delivering the kind of customer service that all small businesses need to deliver. This brings me right back to the question I get asked in regards to how much money can be made at running a franchise. I'm not trying to over simplify this in any way or tell you that any one concept or system is perfect - including ours at Shear Madness. What I am trying to tell you is that regardless of the franchise you select, it's going to take a lot of hard work, a lot of perseverance, and maybe a little luck to succeed! So the answer to the question of “how much money can I make” always begins with the owner and operator of the business. Unfortunately, franchising is not a failsafe business model, and it will still rely on the concept, location, marketing and many other variables for the business to succeed and prosper. But the most important factor is the owner operator, and that could be why your franchise is not making money!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business that provides a positive experience in helping children and their families? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Item 7 Download

Topics: Shear Madness Haircuts for kids, how to franchise, Business Tips, small business how-tos, business growth, franchising, franchise ownership, business success, franchise success

Four Basic Steps to Evaluating a Franchise System

Posted by Janon Otto on Fri, Jan 13, 2017 @ 14:01 PM

franchisesuccess2.jpg

New businesses are formed every day.  And businesses close their doors every day as well!  The chances of starting a blockbuster business on your own are small.  This is why the whole idea of buying a franchise business is a popular one!  Those businesses should have a track record of being successful, and should have systems in place that you can replicate. 

Running a business can be hard work, and it can encompass many challenges that most people have never encountered. But it's arguable that when you invest into a  franchise system, you have a greater chance of success. Plus, most  franchises (like Shear Madness Haircuts for Kids) do offer the advantage of a successful business history and scalability. However, as implementing a salon franchise system does take effort, you'll want to make sure all your questions are answered through doing a little research. 

How can you research a franchise system?  Because our expertise is in a salon franchise - we will address that situation directly, however most of these apply to any type of franchise system.

1.  Contact salon franchises, reach out to the franchisors, and compare business models!  Which one suits your interests?  Which one has the best opportunity for financial success, etc.

2.  Look at the Franchise Disclosure document and the Franchise Agreement.  Many people confuse these documents.  The Franchise Disclosure document lays out the facts about a franchise, how much it costs, the fees, history, current franchise locations, etc.  This document also lays out the details of the training that they offer - this is an important area to compare systems.  The more training, the better!  The Franchise Agreement is the document that you must sign to become a franchisee of the system.  Here is where the fine print details lay.  How is the Royalty collected, how can I advertise, what is my territory, etc.

3.  Talk to current franchisees.  These are the ones who have been through what you are thinking about pursuing.  They are free to tell you actually more than the franchisor can tell you!  The franchisor is bound by rules the FTC puts out about what they can and cannot say to any prospective franchisee.  But, the franchisees can tell you whatever they would like to tell you!

4.  Seek out a franchise business that currently has a long track record of success. Keep in mind that the franchise system itself may be younger than the actual concept itself.  Find out how long the franchisor has had a history with the concept itself.  Have they really figured it out before offering the franchise? For example, here at Shear Madness Franchising, we franchise Shear Madness Haircuts for Kids salons the Franchise system was started in late 2010, but the first salon has been inexistance since 1997!  

We have worked with our franchisees in growing their business, and truly want to help ensure sure they are on a path to franchise success. Why? Because we understand that having someone who can offer expert advice on growth and scalability is one of the significant advantages of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, business tips, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Item 7 Download

Topics: franchise, salon franchise, franchise buyers, buying a franchise, Business Tips, franchising, franchise research, evaluating a franchise, franchise ownership, business success, business skills, franchise success

September Blog Digest: Starting Your Own Business?

Posted by Matthew S on Mon, Sep 19, 2016 @ 14:09 PM

Sept16BlogDigest.jpgWhen starting a new business by yourself, sometimes it might seem like doing your own research and going at it alone is the most attractive option. But ultimately, this might not be a good idea. Not only could you possibly be doing the wrong research and making investments that might not be financially profitable over the long run, but you just might not have all the necessary information at your fingertips that can help ensure business success! Want to know more? Don't miss the rest of this very helpful article over at: In Business, One is the Loneliest Number! Also, be sure to check out some of our many other latest resources below, or by visiting our ever growing Shear Madness Franchise Blog!

Are you ready to turn your dream into a reality? Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantages of franchise ownership! Click below for our free download - the Franchise Buyer's Toolkit!

Exploring a Children's Salon Franchise

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family by starting your own business? We are one of the fastest growing kids hair salons and franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, business tips, how to grow your small business, or how to become a owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Until next time, have a great rest of the month! - The Shear Madness Team

Topics: franchise, franchising, blog digest, business success, business skills

Blog Digest: What are Franchise Buyers Looking For?

Posted by Matthew S on Thu, Aug 18, 2016 @ 17:08 PM

August16BlogDigest.jpgWhat are prospective franchise buyers looking for when it comes to buying into a franchise system? We opened this question up to some of our Shear Madness Haircuts for Kids franchisees, and this is some of the feedback we received. First of all, Communication is  Key. It may seem like a given, but it's true! Franchise communication is important through all aspects of franchising - from being able to effectively communicate with customers, to being able to have great communication channels between potential area developers, franchisors, franchisees, and everyone in between. As such, franchise buyers should be looking for a communication system that ensures consistency and timeliness of communication. Similarly, a means by which franchisees throughout the system can easily and effectively communicate with each other is also very helpful. Many franchisees join a franchise for the systems and support, so it's critical they get it! To check out more about this topic, please read more atWhat do Franchise Buyers Want and Need? We Asked - Top 8 Answers! In the meantime, feel free to take a look at some of our latest Blog articles for August!

August Blog Resources:

Turn your Dream into Reality! Are you or someone you know interested in learning more about how to become a successful owner of your own kids hair salon franchise business? If so, please click "franchise opportunities", call 1-888-98 GONE MAD, or download our FREE Franchising Toolkit at the link below!

Exploring a Children's Salon Franchise

We hope you've enjoyed our August edition of the Shear Madness Blog Digest. If you'd like to check out our entire library of blog articles, please click on Shear Madness Blog. In the meantime, if you should ever have any questions or articles that you might like to see us discuss in a future blog article, please don't hesitate to call or write us an e-mail. Until next time, have a GREAT rest of the Summer! 

The Shear Madness Team

Topics: franchise, franchising, blog digest, business success, business skills

July Blog Digest: The 3 Must Have Skills!

Posted by Matthew S on Tue, Jul 26, 2016 @ 14:07 PM

kidsfranchise2.jpgDo you have the three "must have" business skills for franchise owners? Many people that contact me are “romantically” attracted to our concept. They love the idea of a cute, fun and brightly colored place to take kids for a great haircut. Or I hear, “I love children, so I was really attracted to this." However, it is a business!  To succeed you need skills too!  Interested in learning just what those top 3 skills are?  Find out by reading here!

Meanwhile, if you'd like to read about a variety of other subjects related to franchising and the successful operation of a small business, please click on Shear Madness Franchising Blog or check out some of the latest articles below!

Turn your Dream into Reality! Are you or someone you know interested in learning more about how to become a successful owner of your own kids hair salon franchise business? If so, please click "franchise opportunities", call 1-888-98 GONE MAD, or download our FREE Franchising Toolkit at the link below!

Exploring a Children's Salon Franchise

We sincerely hope you've enjoyed our July edition of the Shear Madness Blog Digest. As always, if you should ever have any questions or articles that you might like to see us to discuss in our blog, please don't hesitate to call or write us an e-mail. We're having a great day, and we hope you have one too!

The Shear Madness Team

Topics: franchise, franchising, blog digest, business success, business skills