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

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

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

Franchise Warning! Are You Getting Sold or Recruited?

Posted by Jim Otto on Tue, Nov 15, 2016 @ 15:11 PM

warning.jpgCandidates often ask me why we pay for all their expenses when they come to Discovery Day to see our award winning children’s salons. Well, first of all that isn't quite accurate, as we do ask our best candidates to buy their own plane tickets (that way they have a little “skin in the game”). But other than that it’s pretty much on us. Now don’t get me wrong, there is some qualification that goes on and candidates that come into see us take our free no-obligation webinar, and have sent us some financial information that we check out. We don’t feel like it would be a prudent use of company funds for us to treat candidates to a  hotel on Kansas City’s Country Club Plaza district if they weren’t financially qualified to join our system. But for those that meet our qualifications, we do feel like Discovery Day is an important part of the process.

Franchising, more than any business I can think of, is a relationship driven model. The Franchisee relies heavily on the experience, knowledge, training and systems of the franchisor. In turn, as the franchisor, we are looking for people who will work hard, follow our proven systems and expand our brand. When that relationship works like it's suppose to, both sides benefit. Or putting it another way, it’s a “win-win” situation!

All this takes me back to whether you are being “sold” a franchise, or being recruited to join a brand. Franchisors that are out there only to sell franchises typically are looking to collect franchise fees and will sell a franchise to anyone who will buy. They are typically focusing on “quantity” instead of quality and turn a blind eye to marginal candidates. At Shear Madness our focus is on franchise “recruitment”. We want our candidates to match our profile, culture, and generally want them to be the type of people that have the same values as we do. We want our tag-line, Where Every Child Matters to really mean something to them. Understanding our culture is the starting point to a long happy marriage of franchise and franchisor, which is truly a ‘win-win” situation.

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  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!

Item 7 Download

Topics: franchise buyers, buying a franchise, Shear Madness Haircuts for kids, how to buy into a franchise, successful franchisees, nourishing success, business relationships, franchising, franchisee support, franchise research, why buy a franchise, brand building

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

A Franchise can Multiply your Chances of Business Success!

Posted by Jim Otto on Tue, Jun 7, 2016 @ 14:06 PM

multiplying.jpgWhen you are looking for a franchise to buy, there's a lot of due diligence that needs to be done. One of the things that I would recommend that you look for is current franchisees who are opening up additional locations. When a franchisee is opening up additional units it tells you a couple of things, number one is that there's a very high likelihood that they are either making money with their first location or they feel comfortable with the support and training that they are getting and the trajectory that they are on to continue to expand. Scalability is one of the most important elements of franchise success and opening additional units is a great sign of scalability. Multi-unit owners are really important in franchise systems that don’t have a 10 or 20 year track record. Everyone knows that McDonalds, Taco Bell and Subway have expandable and scalable systems, but if you are buying into a newer franchise system the importance of multi-unit owners is magnified. A lot of this relates back to the issues that I have mentioned previously, namely a proven track record and the support and training that you receive from your franchisor. With everyone looking for a new and exciting franchise opportunity, looking for franchise systems where franchisees are opening up additional units is a great place to begin your search! 

Another good question to think about in regards to scalability and the growth of your business is the following: What do people consider a necessity rather than a luxury? Or put another way, if the economy slows down or even goes into a recession, will my franchise business survive? One example of this is how haircuts are something that most people consider a necessity and not an option, and no matter what the economy is doing hair is always growing - and it always needs to be cut! Child care is another one. People will always have a strong desire to have a family. If people spend money on anything in good times or bad, they will ALWAYS spend money on their kids. We can probably all think of companies whose products have either gone out of style or are no longer relevant. The most recent example is Blockbuster entertainment. The video rental store has been replaced by Netflix and other on demand movie services. Another example is Borders. Borders book stores unfortunately didn't keep up with Amazon's online book stores, and recently closed most of its locations as well.  Again, it's hard to imagine a time when hair care is no longer a need - no matter what happens with technology.

Lastly, when trying to determine how successful a potential franchise system really is, it's a good idea to contact franchises and talk to the franchisors, look at the Franchise Disclosure documents and the Franchise Agreement, and compare business models. For example, 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 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!

Item 7 Download

Topics: franchise buyers, buying a franchise, Small Business Franchise Information, small business how-tos, business growth, franchising, franchise research, franchise growth, scalability

Scalability & Franchising: Like Peanut Butter & Jelly!

Posted by Jim Otto on Mon, May 9, 2016 @ 14:05 PM

PBJ.jpgYou hear people talk all the time about scalability, but what exactly does that mean? I would recommend that you find out exactly what that means as it relates to the Franchise you are thinking about buying! If you are not buying into a “scalable” system, then what you might be saying is that you're content with NOT growing your business. For example, have you ever watched the TV series Shark Tank? In this show, one of the first question they ask is, "What are your revenues?" Another good question that they ask is, "What were your revenues last year?" They ask this, because what they really want to find out is if the model growing, if it's creating more revenue than it did last year, and if it's scalable. Scalability, the ability to grow revenues and expand on an ever increasing workload, is one of the main characteristics of a franchise system. This is where the link can be found between the systems that the franchise has in place, and how those systems function under the ever increasing revenue that is produced. There are lots of ways to measure scalability for lots of different business models, but here are some of the most important when it comes to franchising;
  • Is there a market for the service? Without demand for the product, how will you grow?
  • Can you teach someone else to do it? Scalability relies on the fact that whatever you are doing can be taught to some else who can then teach it to others.
  • Standardization: Can it be repeated successfully over and over, the same way, and continue to produce more and more revenue as it grows?
  • Recurring revenue: I would venture to say that very few franchise models can survive without services or products that meet a need and require customers to come back again and again to get them.

It's a fact that running a business can be hard work and encompasses many challenges that most people have never encountered. But it's arguable that when you invest into a salon franchise system, you have a greater chance of success. Plus, most salon 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. Contact salon franchises, reach out to the franchisors, and compare business models!  You'll also want to take a look at the Franchise Disclosure document, the Franchise Agreement, and talk to current franchisees. 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?

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons, and we have worked with our franchisees in growing their business and making sure they are on a path to success. Why? Because having someone who can offer expert advice on growth and scalability is one of the significant advantages of franchise ownership! And simply put, scalability as it relates to franchising allows you to consistently grow your revenue in the future, just like the Sharks on Shark Tank like it to!

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, buying a franchise, how to buy into a franchise, how to begin a business, how to franchise, franchising, franchise research, franchise growth, evaluating a franchise, scalability

How to Find a Successful Franchise System!

Posted by Jim Otto on Thu, Apr 14, 2016 @ 14:04 PM

successfranchise.jpgOk, so here’s the deal, according to a recent article I read, a new franchise starts in the United States about every 8 minutes. There are several things that bother me about this trend. Number 1 is that many new concepts have no history of operating successfully, so how does a business know that their systems works and can be taught easily to franchisees? Furthermore, without going through all kinds of economic environments and all the various issues that a business can face over a long period of changing business climates, how do you know if the concept will stand the test of time? One of the biggest advantages that I see of buying into a franchise is the “benchmarking” that they are able to do for a franchisee to make sure they are on pace to succeed - and those metrics only come from watching a business over a long period of time. If a franchise can’t show you a track record of success, don’t risk trying to create one for them! 

Number 2 (and this one really bothers me), is how many franchisors are out there selling franchises without actually running the concept. Heck, some franchisors out there have never even run their own concepts successfully. You will hear things like, “we are too busy running the franchise system and supporting our franchisees.” To that I've got to say, if your concept is that difficult to run, then you probably shouldn’t be franchising. And secondly, guess who is testing new ideas for the franchise system? You guessed it, the franchisees and not the franchisor. Look at some of the most successful franchise systems, like Buffalo Wild Wings - who runs about half their stores on a corporate basis. This is the same with Panera Bread! Even McDonald’s owns half their locations. We wouldn’t spend our money on a franchise where the Franchisor doesn’t own and run the concept successfully, so why would you?

It's a fact that running a business can be hard work and encompasses many challenges that most people have never encountered. This is why a strong case can be made for opening a salon franchise, as many offer the advantage of a successful business history. However, even getting a salon franchise off the ground takes effort and careful analysis when researching franchises.  Be sure to contact franchises and talk to the franchisors, look at the Franchise Disclosure documents and the Franchise Agreement, and compare business models. For example, Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores providing franchisee support, and have 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 businesses 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 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, successful franchisees, franchisee support, franchise research, evaluating a franchise

Hot or Not? Finding a Reliable Franchise System

Posted by Jim Otto on Tue, Apr 12, 2016 @ 13:04 PM

HotorNot.jpgEver heard the saying, slow and steady wins the race? It applies a lot to franchising. When I was a stockbroker, guys in the office were always coming up with a “hot” stock pick. Most of the hot stock picks my clients and I invested in never worked out. Sure, they may have gone like gangbusters for a while, but they usually flamed out after a while and plummeted back to earth - and took my money with them! Meanwhile, the older guys in my office were always buying Blue Chip stocks, which means that these were stocks with steady companies in steady industries that did well in any environment. This is why I think there's an interesting comparison here between franchising and buying stocks.

Because when you're out there researching franchises  - it's a good idea to start with the following question: What do people consider a necessity rather than a luxury? Or put another way, if the economy slows down or even goes into a recession, will my franchise business survive? One example of this is how haircuts are something that most people consider a necessity and not an option, and no matter what the economy is doing hair is always growing - and it always needs to be cut! Child care is another one. People will always have a strong desire to have a family. If people spend money on anything in good times or bad, they will ALWAYS spend money on their kids. We can probably all think of companies whose products have either gone out of style or are no longer relevant. The most recent example is Blockbuster entertainment. The video rental store has been replaced by Netflix and other on demand movie services. Another example is Borders. Borders book stores unfortunately didn't keep up with Amazon's on line book stores, and recently closed most of its locations as well.  Again, it's hard to imagine a time when hair care is no longer a need - no matter what happens with technology.

Additionally, be sure to take a little time to determine if the business model you are looking at makes money. Seek out a reliable franchise system 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? As we live in an ever changing and fast paced world, consumers demands change by the minute and are greatly influenced by technology! Look for businesses that are being done the same way today as yesterday, and will be done the same way tomorrow. Luckily haircuts (and hair care in general) is a pretty hard industry to imagine being completely taken over by technology!  This is why over the last decade more and more salon concepts have begun to franchise.

The bottom line is, just like those Blue Chip stocks, when it comes to franchising, those long established businesses that have stood the test of time are usually the best place to start looking for a business. That's why when it comes to searching out a reliable and successful franchise system, sometimes the steady concepts that do well in any environment are a more reliable investment over those that claim to be smoking hot!

Interested in learning more about how you can become an owner of your own exciting Shear Madness location? As one of the best kids salon franchise systems out there, we're also one of the fastest growing kids hair salons in the industry today! And we're always working hard to share our many great resources, small business marketing strategies and business tips so that our franchisees will have the tools to succeed! If you're interested in learning how to become a successful owner of your own childrens salon franchise business, please click below or call 1-888-98 GONE MAD!

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Topics: franchise buyers, buying a franchise, how to franchise, franchising, franchise research, franchise growth, haircare franchise, evaluating a franchise

Inhibitors to Franchise Success - Six Major Considerations

Posted by Janon Otto on Thu, Mar 10, 2016 @ 13:03 PM

whyfranchisefailDespite franchising being a safer way of doing business, it doesn't mean that it's risk free! Because of this, it's important when researching franchises to carefully look at your options, and find out which franchise systems could cause you major problems over the long run - and which franchise systems will provide you with a great formula for franchise success! Below are some of the top problem areas in why a franchise might struggle.

1.  Lack of Systems: Franchising is all about systems. Being able to replicate a successful franchise system is what makes a business franchiseable. An ethical franchise has everything documented and systemized so that it can easily be passed on to others for successful implementation. If a business doesn't have any systems and instead relies only on the skills of individuals within the business, then it shouldn't be franchised. However, some businesses will ignore this and try to franchise their business anyway. Unfortunately, these companies usually are only interested in a quick buck, and aren't overly concerned in who may or may not have the required skills for the successful operation of the franchise.

2. No Track Record: A business can only be franchised if it has a track record. We're often amazed at the amount of people who have an idea for a franchise, but then don't actually have a business! Remember: the business comes first - it's not conceived at the same time as the franchise! Those usually wanting to start a franchise without having a business are again looking to make money fast. Make sure that the franchisor has an established track record of running a business, along with a great reputation of success in franchising!

3.  Location: Half the battle of owning a successful franchise is finding the right location for your business. And depending on the nature of your business, not all franchisees need to be in a city center location or shopping mall. However, a good franchisor will help you study local demographics and work with you to find a great location.

4.  Lack of Marketing: Good franchisors will spend money on promoting the brand nationally as well as in the local area. Ask the franchisor about their marketing activities, and what they plan on doing to help gain recognition and awareness for your franchise. In today's environment there are many ways a franchisor can help market your business in your local area, if they don't plan to help you with that it is another red flag.  A franchise system should have data on local marketing efforts of other franchises in the system, access to that information saves you lots of time and money!

5.  Competition: Check out the competition for your franchise in the local market. If there isn't any competition, there might not be a demand for the product - which may result in it not having much future market potential. On the other hand - you may have discovered the perfect franchise for your area!  There may be a real need for this business, and being first to market can be a great advantage for you.  Additionally, if there's too much competition, introducing a new franchise might be a struggle as well. Be sure to look into markets similar to your own where the franchise is operating in order to judge how well it might do in your local area.  A good franchisor should have access to information that can help you decide whether the competition factor in your area is a plus or a minus.

6.  Insufficient Funds: One of the biggest reasons franchises can fail is that the franchisee has under-estimated how much money is needed to buy and run the franchise. It's not just about having money for the investment, but about the costs you'll incur when running the business. For example, how will you plan on paying staff salaries or having enough for supplies? If your franchise business is not making money initially, you'll need to make sure you have anough money for day-to-day operating costs, as well as paying your own bills. Over-estimating what you need is a good way to calculate the cost of running a franchise.

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!

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Topics: salon franchise, buying a franchise, franchise opportunity, Small Business Franchise Information, business growth, franchising, franchisee support, franchise research