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

Meet Seven of Our Franchise Owners!

Posted by Janon Otto on Thu, Mar 16, 2017 @ 13:03 PM

nanke picture

The past several years have been EXCITING years for our team! Owning and operating a kid's shear madness salon franchise has it's share of hurdles and challenges, but we maintain a positive attitude and outlook as we keep pressing forward! It has been fun to see all our hard work paying off as we now celebrate having 10 locations open (with more on the way)! Our incredibly COOL salon concept for kids has franchise locations now in Lees Summit MO, Albuquerque NM, San Antonio Texas, McAllen Texas, Amherst New York, Humble Texas, West Des Moines and Ankeny Iowa and a NEW location in Lake Forest, California - all thanks to our dedicated and enthusiastic franchisees and our team. Now we would like to take a moment and recognize some of our fabulous franchise owners and their families. To our ever growing Shear Mad-tastic Family - here's to you!

Shear Madness Franchise Owners

TDanni.jpgTodd Danni: Todd has spent a career developing and managing a real estate portfolio in Buffalo, New York. In addition, Todd and a partner developed a successful Fitness Concept from two million in revenue to over 18 million when he was in his twenties. Most recently, Todd signed an Area Development Agreement to open multiple locations in New York State, Pittsburg, PA and Cleveland Ohio - with his first store opening in Amherst, New York! “We are excited to bring Shear Madness Haircuts for Kids to the East coast,” said Todd Danni. “We feel like Shear Madness has a unique business model and we look forward to expanding the concept in the northeast.”  Todd is opening his second location in August of this year!

AndrewMary.jpgAndrew and Mary Elmasri: Andrew and Mary signed an Area Development Agreement covering 5 counties in Southern California, with their first store opening in Lake Forest, California! Doctor Andrew Elmasri of Lake Forest, California, is a managing partner of California Children’s Salons, LLC and President of CA Anesthesia of Laguna Niguel California. “We have a growing demographic of young families in Southern California, and we are excited to bring the unique concept Shear Madness Haircuts for Kids offers to this area,” commented Elmasri. “After visiting with management in Kansas City earlier this year, we feel like the opportunities for positive expansion is a great fit for our area.”

Jperkins.jpgJackie Perkins: As a former supervising manager of a Fortune 500 company in the Oil and Gas industry, Jackie was interested in more than just a business - she was looking for an opportunity to use her talents and business skills. Several of Jackie’s friends owned Franchises, which gave her added motivation to start her own business. Drawn to Shear Madness Haircuts for Kids for their fun and positive model, Jackie now has her own amazing store in the Humble/Kingwood, Texas area! Jackie is having fun with her new location and currently has her eyes on a location for her second location!

Picture 1Brenda and Eduardo Morales: Our very first Shear Madness franchise owners, this couple opened their first salon in San Antonio TX at the Village in Stone Oak in San Antonio, TX in November 2012. Brenda and Eduardo have faithfully endured many of the early franchising growing pains with good humor and a willingness to learn. Their store has steadily seen growth despite the tough competition in their area. Their birthday parties have been a very successful addition to their haircutting business. We are so grateful for this caring, enthusiastic, and extremely hard working couple.

michelle webMichelle and Tom Vick: This couple came to us in 2012 looking for an opportunity to grow our concept in a brand new market in Albuquerque NM. To our delight, Shear Madness in Albuquerque, NM opened in October 2013 with much local anticipation and enthusiasm! Their salon is steadily growing, and with the help of their Fantastic Staff they are successfully building a great reputation with their local people. They also own a construction company. Shear Madness provides diversity to their income.

garciafamily

Elsy and Jorge Garcia : Owners of the Shear Madness at the Forum in San Antonio, TX, this couple moved to the United States from Monterrey, Mexico. Opening their first Shear Madness location while moving their family and and enrolling 4 children in school was challenging - but worth the effort. They have a super location in a high traffic area with fantastic stylists! Their store has been converted completely from a previous children's hair salon into a fantastic Shear Madness Haircuts for Kids!

erin signErin Nanke: Erin was a full time marketing executive for a large television station and owner of our new location which opened November 2013 in West Des Moines, IA! Her store sits across from Jordan Creek Mall in West Des Moines, and across from the popular local favorite Scratch Cupcakery. Partly due to her incredible location and partly to her mega marketing skills, this franchisee is building her salon into "the place to be" in Des Moines, Iowa! Erin also opened a second location in Ankeny, Iowa! We are honored to have such knowledgable and determined franchisees on our team.

Our Franchisees in McAllen TX: This young couple was super excited to open their first Shear Madness in McAllen, TX! They have a beautiful store that not only offers great haircuts - but cool retail too! It's definately the destination for lots of kids and their parents in the McAllen/Edinburg area. Be sure to check it out!

jimandjanonJanon and Jim Otto: This extremely hardworking husband and wife duo diligently work behind the scenes not only as Shear Madness franchisors, but as salon owners as well! They opened their first location in Lee's Summit, MO in May 2013, and have been successfully building their salon business since. This Madtastic couple sells, supports, oversees, and executes every aspect of Shear Madness Franchising, LLC. No detail is too big or too small for the Otto's. Jim and Janon strongly believe in the kid's hair salon concept and the future of Shear Madness.  The Otto's have just signed a lease to open their second location in Liberty, MO - so look for that in early summer!

1 paula  2011

Paula Thurman (far right): The mother and founder of Shear Madness Haircuts for Kids, Paula Thurman has built her kid's hair salon and boutique concept to be what it has become today. As owner and operator for over 18 years, she is an expert when it comes to customer service, managing employees, payroll, retail, and many other salon related issues. Paula personally oversees all training for new franchise locations and their employees. She is committed to the success and vision of becoming the very Best Kid's Hair Salon Franchise - "The Standard by Which All Others are Measured!" Paula co-owns the original Shear Madness Haircut for Kids, Olathe, KS location.

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 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: kids salon franchise, salon franchise, franchise buyers, buying a franchise, franchise opportunity, what is a franchise, how to buy into a franchise, Small Business Franchise Information, business growth, franchise growth, evaluating a franchise, franchise ownership, business ownership

When it Comes to Franchising...Don't Buy the Ice Melt!

Posted by Jim Otto on Tue, Feb 14, 2017 @ 17:02 PM

dontbuyicemelt.jpgYou know, several weeks ago our local weatherman here in Kansas City started talking about a major ice storm. When the local news came on they would open up with the scary music and the big graphics that filled the screen, "ICE STORM 2017".  Of course, there were long lines at the grocery stores and bottled water supplies quickly dwindled. However, one report that really fascinated me was from a poor, exhausted individual at a local convenience store who had been to 7 stores, and still couldn't find any ice melt - everyone was sold out! 
 
Well, you probably know where I am gong with this. The big storm never came. If the people who had gone out in a panic had done a little homework, they would've noticed that it was a one day event where the weathermen expected it to be back in the fifties in a couple of days. In other words, if you could survive for 24 hours, you were probably going to be just fine!
 
Unfortunately, franchising is a lot like this. We are constantly  amazed by some of our competitors who claim things like, "We are growing at 500 percent! We have 16 markets that are sold out! We are the best children's salon franchise in America!" One recent competitor of ours making such claims just bought the concept from a previous Franchisor competitor only two years ago! Wow! If we would have known that we could have learned everything about our business in a couple of years, then you can bet that we would've franchised it along time ago (because we ran the concept for 12 years before we franchised it). You see, what they are really good at is selling franchises - not running the concept that they are selling. 
 
So let me give you some advice: do your homework! Ask how long a franchisor has been running the concept, ask if they are currently running the concept, ask how many franchise locations have closed and for goodness sake's call the franchisees and see if they are getting the training and support they need. The moral to the story here? A lot of franchisors sound just like our local weatherman, and a whole lot of people went out and spent money on ice melt when they really shouldn't have!
 
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? 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, 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, Shear Madness Haircuts for kids, how to buy into a franchise, how to franchise, franchising, franchise ownership, why buy a franchise, franchise success

Seven Things Every Franchisor Should be Doing

Posted by Janon Otto on Tue, Feb 14, 2017 @ 17:02 PM

7things.jpgMany business owners will often take a look at their business and ask, "how can I grow?". Friends will look at them and say "Hey!  You ought to franchise!".  Sounds good - franchise your business!  Easy, right?!  Just find some people who want to do what you do, teach them to do it, and then sit back and collect all that royalty! Wow - So Easy!

WRONG!  Running a franchise is work!  It is running a business that is totally different than the business that you are franchising. If you're someone who is thinking of starting a franchise, or buying into one, you'll want to remember the list of the seven important things that the franchisor had better be offering their franchisees. If they aren't, then the system is not worth doing or investing in!

1.  Putting franchisee profits first!  

2.  Staying current with all marketing methods, evaluating them as they relate to the franchise business, and teaching franchisees about them.

3.  Continuing to develop the concept so that it stays up to date with the times and trends.

4.  Developing standards to help all franchisees evaluate their success or areas that need improvement. As an example from a salon business standpoint, this would be such relevant information as how many haircuts should a stylist perform in a given time period, how to figure out what to pay your stylists, what products to offer in your store, etc.?

5.   Developing benchmarks  for success.  How is each franchise doing compared to others in the system?  Are all franchisees given access to the best information?

6.   Continually developing new content that potential customers see as fresh.  Website, social media platforms, in store materials, etc.

7.   Constantly improving franchisee support - both access, systems, & communication.

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!

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 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: salon franchise, franchise buyers, buying a franchise, how to buy into a franchise, Small Business Franchise Information, how to franchise, small business how-tos, growing a small business, franchising, franchisee support, franchise research, franchise growth, franchise ownership, why buy a franchise, franchise success

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!

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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

In Business, One is the Loneliest Number!

Posted by Jim Otto on Tue, Sep 13, 2016 @ 16:09 PM

lonelybusiness.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! You've probably heard the phrase, “You don’t know what you don’t know”. Well, once when I was out of work I went to a job fair for a major pharmaceutical company. There were perhaps around 200 people in the room, and the meeting started off something like this, “all of you who have experience in the pharmaceutical industry get on this side of the room, and everyone else stay where you are.” Needless to say, I never interviewed that day. You see, that company knew there was no substitute for experience, no substitute for having "been there, done that”, and no substitute for having to start all over training someone to learn the pharmaceutical industry.

Let me offer you a solution. Let me tell you about a way to shorten your learning curve, save yourself all that research, stop yourself from making mistakes that someone else already made, and thinking that you know how things work when you really might not. It’s called Franchising. You see, someone else has already made all those mistakes that you are about ready to make. Someone else has done all that research. Someone else had those same wrong thoughts that you think will work, but they really don’t! That same someone, or group of someones will teach you how to succeed at a much faster rate. Why? Because they have already “been there and done that”. Put another way, by going alone - how long will it take, how much money will you spend, and how many mistakes will you make before your business must close it's doors or succeed? 

Don’t get me wrong, there are a few rare people out there who can start a business from scratch, and lo and behold it succeeds. Biz Stone, the Co-Founder of twitter is one of those. He says that, “timing, perseverance and ten years of trying will make you an overnight success”. But why would you do that when you can “pay” for a system that works and gets your business up and running at a much faster rate? That's why one is the loneliest number in business! You are either going to be in business by yourself, or you're going to have the support, systems and people to guide you. At the end of the day, what side of the room do you want to be on?

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own  small 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!

Exploring a Children's Salon Franchise

Topics: franchise buyers, buying a franchise, Shear Madness Haircuts for kids, what is a franchise, small business how-tos, growing a small business, nourishing success, franchising, franchisee support, franchise ownership, why buy a franchise

The Big Red Flag of Franchising!

Posted by Jim Otto on Sun, Jul 17, 2016 @ 22:07 PM

Bigredflag.jpgPeople are requesting information about our franchise on a daily basis. The two most often asked questions I get are, “how much does it cost?” and “how much can I make?” These are questions that most interested franchise buyers have the right to know. If I may, I'd like to offer prospective buyers a question that would answer the other two and save everyone a lot of due diligence and research. You see, I think the most important question that franchise buyers should ask is, “How many of your locations have closed?”

Closing locations are the BIG RED FLAG of franchising. Why? Closing locations are a sign of several franchising problems.

Number one (and the one most people don’t ask enough) is that closings are caused because the franchise may not make enough money. This may not even be the fault of the franchisor, it’s just that it may not be a franchisable business model with enough demand from its customers. Remember: most franchising systems need several key components to be successful. The system must be easily taught to someone else, and that person in turn can teach it to someone else. Most successful franchising models create a recurring revenue model that continuous to expand and produce more and more revenue over time. That’s called scalability.

Number two is that closed locations can be a sign of poor support and training. Franchisors that don’t properly train and then support their franchisees usually suffer from lots of closed franchise locations. Running a business is hard and franchise systems that don’t help get their franchises “over the hump” and through the most difficult part of business, the startup, usually have closed locations.

So how do you know how many of a franchisor’s locations have closed?

The FTC requires that a franchise list all of their closings in the back of their Franchise Disclosure Document (also known as the FDD). If there are no closings listed, then make sure that you ask the franchisor to make sure. Under the FTC’s guide for buying a franchise, which you can find online, they'll say that if the numbers show that more than a few franchised outlets have closed, transferred to new owners, or transferred to the franchisor - then it could be due to problems with the franchsor’s support or because franchises aren’t profitable. 

This is not to say that there is a franchising system that exists with no closings. All franchising systems have locations that close. Running a business is hard and it takes lots of time, effort and perseverance to succeed, no matter how good the systems are. Plus, many people just lack the skill it takes to run a business. But if it were me, I'd always be sure to ask the question, “how many of your locations have closed?” Asking that one question will save you a lot of time and 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 advantages of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own  small 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!

Exploring a Children's Salon Franchise

Topics: franchise, salon franchise, franchise buyers, buying a franchise, franchise opportunity, how to buy into a franchise, Small Business Franchise Information, how to franchise, franchising, franchisee support, franchise research, haircare franchise, evaluating a franchise, franchise ownership, red flag, franchise success