Sacrificial Success and Franchising Folly

Posted by Jim Otto on Tue, Sep 19, 2017 @ 14:09 PM

sacrificialsuccess.jpgI recently met with a top-notch franchise consultant. He had developed a franchise system that he had built out and sold for a handy profit, hence his new business of being a "Franchise Consultant". Everyone wanted to know what his secret to success was. After two days of meetings with Bob (his name for the sake of this article) he finally told me the secret. As he was describing various franchisees, he told me about his best franchisee ever.  "Our best franchisees did about 2.5 to 3 million per year, but we had one guy in Milwaukee who did almost 5 million!"

What?! That's amazing! Of course, I wondered how in the world this guy in Milwaukee did it. I asked Bob about it, but it wasn't until 2 days later that he finally gave me the secret to this Milwaukee franchisees success. Bob simply said, "He worked harder then everyone else."  

Now don't get me wrong, there are a number of things that can account for franchise success. But what gets missed is that the individual  in Milwaukee didn't just work harder then other franchisees - he made personal sacrifices that others weren't willing to make. Being the best requires more than hard work, it requires doing things that others aren't willing to do. In the book "Outliers", Malcolm Gladwell studies the great prodigies and people of genius throughout history. From Mozart to Bill Gates they all had one thing in common. They all practiced / studied over 10,000 hours. Were they bright and talented? Yes! But did they study and practice longer then everyone else? Yes!  
 
The real folly is thinking that if you buy into a franchise system, you'll be guaranteed success. However, while a franchise system will certainly provide you with a big advantage over going at it on your own, the simple truth is that you must still be willing to make personal sacrifices to make your franchise successful! 
 
Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchisees in providing excellent support and service (in order to encourage continual growth and franchise 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. Having a knowledgable support base who can help guide and advise you through your business journey 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: salon franchise, franchise buyers, buying a franchise, Small Business Franchise Information, how to franchise, Business Tips, successful franchisees, business growth, nourishing success, franchisee support, franchise growth, franchise, franchise success, franchising, franchise ownership, franchise success

Risky Franchise Investments? How do you know?

Posted by Jim Otto on Thu, Jun 15, 2017 @ 11:06 AM

failing.jpgMost people who are familiar with franchising will look at the Franchise Disclosure Document, known as the FDD, differently from people who are just starting the process.
 
Hours of time can be spent on going through the two most commonly looked at areas of the FDD: the Item 7, which is the cost to build out a particular franchise, and the Item 19, which is the Financial Performance Representation (or FPR). Some franchises will choose to give you the numbers of their stores in the Item 19, and many will not, simply stating that they choose not to disclose those numbers at the present time. 
 
Where most people stop at the Item 19 is going one or two more pages to the Item 20 - which is a great way to gauge the health of a particular franchise. In the Item 20 you will typically find a series of tables titled OUTLETS AND FRANCHISE INFORMATION. If you go through these tables carefully you will see some columns titled outlets closed and outlets transferred. This is where you find out if a franchise system is failing. A large number of franchises closing speaks for itself, and if a large number of franchisees are transferring or selling their stores, then why would they do that if the franchise is so good? 
 
Reading the FDD and understanding what it says is a big part of finding the right business. If you don't feel comfortable going through that big thick document, engaging the services of a good franchise attorney  may help you make the right decision. Good Luck in Your Search!
 
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 franchise investments, 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

Item 7 Download

Topics: franchise buyers, buying a franchise, franchise opportunity, Small Business Franchise Information, how to begin a business, Business Tips, franchising, franchise research, franchise growth, franchise, franchise success, franchising, franchise ownership, business success, franchise success, business ownership

If You Fail at This, You Will Probably Fail at Franchising!

Posted by Jim Otto on Thu, May 11, 2017 @ 17:05 PM

dontfailatthis.jpgAh yes! When it comes to buying a franchise, everything is set up for you to succeed. Support systems are in place, along with great training - all you have to do is follow the franchisor's proven systems! Right? 
 
Unfortunately there is a missing link to all of this. Your ability to manage, communicate and motivate your staff and employees is crucial to your success. If you have this ability, you will be able to create a great work environment at your business. This helps create customer satisfaction, which in turn can create strong retention and word of mouth for your business,  which will then help create higher revenue. On the other hand, if your staff is constantly turning over it can lead to things like low moral and infighting inside your business. Unsurprisingly, customers can feel that when they come in, and they won't come back.  Also, the cost of retraining staff and employees due to a high turnover can cost your business. According to a recent CAP study, the cost of replacing a $10 an hour retail employee is $3,328. 
 
Additionally you will need to communicate with a few unhappy customers from time to time, as they may not have had the experience that they had expected at your franchise. You and your staff's ability to convey your company culture to your customers is another part of the communication skills that you need. No wonder candidates that have had previous  experience owning and managing a business are so valuable to franchise systems. Good Luck with your search, it's an exciting time to own a 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 franchise 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: franchise buyers, buying a franchise, franchise opportunity, how to buy into a franchise, how to begin a business, Business Tips, business growth, business relationships, franchising, franchise research, evaluating a franchise, franchise, franchise success, franchising, franchise ownership, business skills, franchise success, business ownership

Tips on Becoming a Multi-Unit Franchisee!

Posted by Matthew S on Thu, May 11, 2017 @ 14:05 PM

multiunit.jpgAsk almost anyone who has opened their own franchise business, and they'll tell you that success rarely happens overnight! Building your store into a thriving business sometimes takes a healthy financial commitment, as well as patience, perseverance and of course - hard work! But after you've opened your first store, should you consider opening another? What about three or four? Or 25? In the world of franchising, with hard work and setting goals, you can achieve these dreams. But understandably, you have to make sure you don't bite off more than you can chew! 

While many franchisees may be perfectly happy with achieving success through opening one franchise location, opening multiple units requires certain abilities which may catch some people by surprise. For example, a franchisee will find that it's a completely different ball game managing multiple units. It's not like it was when they only had one store to worry about! Now, with many moving parts and employees to manage, a franchisee will need to step into a role more like that of a CEO (with managers, human resources and accounting staff to help grow the business). In other words, it'll be a lot more difficult and stressful to try to micro-manage every detail when multiple units are owned. This is where hiring the right people and trusting them to help you grow with multiple units is extremely important when pursuing this path. And sure, under a multi-unit model your employees might not do it exactly the way you would have done it, but as long as it's delivering the results, don't sweat it.  If you can get an employee to do it 80% of the way you would have - you have a great employee!

Additionally, a franchisee considering opening another store should make sure that they're not just falling prey to a "bigger is better" mentality. Because if a franchisee has opened 4 locations and 2 are losing money, it may end up being less profitable than having one or two stores that they're much more able to capably manage and grow - and ultimately make even more money than they would have made with 4 locations. Without the right systems in place for multi-unit ownership, it can become really difficult for one person to manage the growth of numerous locations, and the great customer service or experience that was once provided with just one or two stores might be an unfortunate casualty.

Location is another factor to consider when owning multiple units. Of course establishing a business in the right area to maximize profits is always key. But it's also good to be aware that the farther apart your franchise locations are from each other, the more challenging it might become to manage properly. Not only that, but distance might impact how much shipping or delivery of retail from your warehouse costs, which could cut into profit margins as well. 

And then there's those unexpected emergencies that might happen when you own more than one store. For example, what happens if one of the stores you've opened is located in a great area, but road construction for several months impacts the flow of customers? Because of this, it's sometimes a good idea to make sure that you have multiple ways to support the business in case of those scenarios that temporarily causes a dip in your profits. To illustrate this concept, consider a business owner who owns several book stores. In order to diversify incomes for unexpected financial situations, this owner also sells books online, hosts school book fairs, and perhaps works as a small publisher for local authors.

In the end, there's sure to be a lot of other valuable decisions to think about before investing the time, energy and monetary resources into multi-unit development. But with careful research, networking with other multiunit franchisees, and attending workshops or conferences, those business owners interested in the potential that this exciting avenue of franchising represents will be better equipped for whatever comes down the road!

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, franchise development, 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: franchise buyers, Small Business Franchise Information, Business Tips, successful franchisees, business growth, franchising, franchisee support, franchise research, franchise growth, franchise, franchise success, franchising, franchise success, business ownership, multiunit franchise