5 Steps to Opening Your Own Kids Hair Salon!

Posted by Matthew S on Thu, Nov 16, 2017 @ 12:11 PM

5steps.jpgAre you or someone you know interested in owning your own business, but not sure how to go about it? Perhaps you're looking for an opportunity to diversify your portfolio, or gain a little more financial security for the future? Or maybe you just want a change of pace, and want to find a way to help make a positive difference in your community? Whatever the case may be, Shear Madness Haircuts for Kids is currently experiencing rapid growth in this profitable industry. According to the Bureau of Labor Statistics, America's salons and spas do around $46 billion in sales annually (see professional beauty association)! And with opportunities all across the United States to own your own kids hair salon franchise business, perhaps now is the time to take the first step towards finding out how YOU can become a part of the Shear Madness Haircuts for Kids family! Following are our five important steps towards potentially owning your own fantastic kids hair salon!
 
1. Take time to investigate!  Is running a kids salon right for you?  Can you do it on your own, or will you need help?  Joining a franchise system provides help - but they are not all created equally, nor do they all have the same culture, etc.  Not only are there quite a number of hair salon franchises available out there, but there's a number of kids hair salon franchises too. And understandably, they aren't all the same either. Some may have different costs associated with them, or different ways of trying to help a franchise owner achieve business success. So make sure you take the time to carefully research those options which are most appealing to you by talking with the franchisor, taking a look at their franchise documents (like the item 7) and discussing how the franchise system works with other franchisees who have invested into it.  How much support do they offer?  Is there a significant operating manual?  How long is training?  Are there good systems in place to prevent theft, train staff, communicate with the franchisor, continued development for the future?
 
2. Explore Your Finances! As you might guess, starting up a business takes a lot of time and money. Prospective franchisees may have a significant amount of savings in place, while others might have to secure some additional financing options through business loans or partnerships. Some of the ways you can determine just how much you'll need is by talking to the franchisor of the system you're interested in. When you do, be sure to ask them about licensing fees, franchising fees, costs for technology (computers, televisions, etc), how much rental space for your business might be, furniture costs, employment and insurance costs, utilities and retail. Again, this is where documents like the item 7 can be very useful!
 
3. Select Your Space Carefully! A great franchisor will help franchisees research the demographics of an area, and will assist in selecting the right site for your business. Shear Madness Franchising, for example, will carefully analyze demographic data and even travel to the area to help the franchisee in determining which locations might be best suited for their kids hair salon. For example, some areas might not have many kids that live close by, there might be a competitor already there, or the drive-by or walk-by traffic might be too low. Additionally, a franchisor should help assist in rent negotiation and making sure there are no hidden fees or unusual situations involved with a potential space.
 
4. Hire the Right Staff! Sometimes it can be quite a struggle finding the right people to manage and work at your new business. However, franchisors can help in this area by providing resources, marketing materials or advertising to help in hiring staff. They also help in training staff, and assisting managers and employees in adhering to the franchise system (which in turn helps contribute to your business being successful).
 
5. Network and Set Realistic Goals! While running your own business and making a positive difference in your community can be extremely rewarding, as stated above, it can take a lot of time and money too. Be sure to set realistic goals for your business that can be achieved without burning you out, or putting undue stress on family relationships. Also, it can be a good idea to network with other franchisees within the franchise system, or join professional trade organizations for the ideas and encouragement that can come from fellow business owners. However, a great franchise system will help provide many of the resources you need so that you don't feel like you're going at it alone. 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 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? We are currently looking for franchise prospects throughout the United States - and especially Tulsa, Oklahoma City, Omaha, Lincoln, Denver and St.Louis! 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

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Topics: buying a franchise, franchise opportunity, Small Business Franchise Information, how to begin a business, franchising, franchisee support, franchise research, evaluating a franchise, franchise, franchise success, franchising, franchise ownership, business success, kids hair salon, why buy a franchise, franchise success, business ownership

10 Reasons to Invest in an AWESOME Shear Madness Kids Hair Salon Franchise!

Posted by Matthew S on Thu, Nov 16, 2017 @ 12:11 PM

Wowfranchise-1.jpgWelcome to Shear Madness Haircuts for Kids Franchising! Not only do we offer an amazing franchising system that can potentially offer an impressive return on your investment, but we really do value being able to help make a positive difference in the lives of kids and their parents. From stylists who truly care about their customers, to franchisees who work hard at helping make a positive difference in their communities, Shear Madness Haircuts for Kids is THE kids hair salon where EVERY child matters! But we also understand that while the concept is important to a potential franchisee, they also want to know how owning a Shear Madness Haircuts for Kids might be a sound business investment too. That's why we thought we'd put together the following list of ten reasons why Shear Madness isn't just a cool place for kids (even though it definately is that), but it's also a concept that may potentially translate into long-term financial success! 

A Record of Success: Franchisors like Shear Madness Haircuts for Kids will have a proven record of success. Through years of experience marketing to their customers, they usually understand what works - and what doesn't. Through becoming a franchisee, you automatically gain this valuable business advantage.

Robust Industry: Shear Madness Haircuts for Kids offers services that are in high demand. The children’s segment of the recession resistant Hair Salon Industry is one such example, It's currently worth around $19 billion. To date, there are around 45 million kids in the Shear Madness age group – and this is expected to grow by about 7 million by the year 2020! 

Marketing Support: Ask anyone who runs a business, and they’ll tell you that marketing not only takes a lot of time – but can cost a lot of money too. However, an effective marketing plan is critical in letting the community know about what your business does, where it’s located, and so much more. For example, Shear Madness Haircuts for Kids understands this, and offers great resources and strategies to help businesses attract new customers.  

Buying Power:  Franchisors usually have experience in knowing what products sell well and what don’t. Additionally, they have the knowledge on how to negotiate for the best prices on everything needed for the successful operation of the business. Many times the sheer number of franchise locations allows the franchise to negotiate for better pricing.

Store Location: Where to locate is an important question any business owner should consider. Franchisors help study your community in order to help you find the best possible location for success.  They know the numbers and other criteria that allow for the possibility of a successful franchised business.

The Brand: A franchise brand is a powerful tool. As an example, the Shear Madness Brand is one that is instantly recognizable as being fun. Those who own a franchise with Shear Madness are automatically connected to the tens of thousands of parents and children who love who we are and what we do. This translates into many repeat customers who share with friends and family about their great Shear Madness experience! 

Building your Store: One of the benefits in buying a franchise is the franchisor's expertise  in designing the layout of a prospective business, working with the right contractors, and knowing how much furniture and equipment will be needed. Again, this helps a business owner save time, money, and keeps the headaches to a minimum! 

Networking: Franchising can be a little like a group of trusted friends, and should be a great environment of sharing and building each other up. Franchise owners who work with other franchisees and communicate what works and what doesn’t will have a competitive advantage over those who don’t! 

Training Support: Great franchise systems have worked hard to develop many training resources to help you achieve success. For example, with Shear Madness Haircuts for Kids, we provide our franchisees with in-store training with stylists, and encourage opportunities to network with other franchise owners. Because of this, you’ll have access to a wealth of business knowledge at your fingertips.

Minimizing Risk: Ultimately, as a potential owner of a franchise, the success of your store will be up to you. But through being a part of a franchise system like Shear Madness Haircuts for Kids, the risk of starting a new business is significantly reduced. Sure, there will still be challenges that come your way, but as a franchisee, you’ll have greater confidence and know-how in how to succeed. 

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 currently looking for franchise prospects throughout the United States - and especially Tulsa, Oklahoma City, Omaha, Lincoln, Denver and St. Louis! 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

Exploring a Children's Salon Franchise

Topics: franchise, franchise buyers, buying a franchise, franchise opportunity, Small Business Franchise Information, how to begin a business, small business how-tos, franchisee support, franchise research, franchise growth, haircare franchise, evaluating a franchise, franchise ownership, business success, why buy a franchise, franchise success, business ownership

Understanding Your Biggest Fixed Business Expense

Posted by Jim Otto on Wed, Jul 12, 2017 @ 12:07 PM

fixedexpense.jpgIn franchising a lot of time and effort goes into researching the best opportunity. If the franchise system that you are looking at has at least some track record and history of performance, you'll discover on close examination that they'll have over performing locations, average performing locations, and under performing locations. The list of reasons that this happens is a mile long. But with "location" as usually being listed as one of the top reasons that a franchise fails, make sure that the franchise that you are buying into has a model for picking a location that has proven track record of increasing your chance for success. 
 
After you find a space, rent will almost always be one of your highest fixed expenses. So make sure that you sign a lease that is commiserate with the amount of revenue that your franchise produces. A simple rule of thumb is that the lower the margin on your good or service, the lower your lease payment should be. Lease payments on most businesses should be in the 10 to 15% range of revenue once the business has matured. Many franchises and businesses have failed because they were paying unreasonable rent, and unfortunately landlords are unsympathetic to business owners when it comes to obligations that you have assumed when signing a lease.
 
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!

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

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

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Topics: franchise buyers, buying a franchise, how to begin a business, Business Tips, small business how-tos, growing a small business, evaluating a franchise, franchise ownership, business success, business skills, business ownership, fixed expenses

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

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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

What's Wrong with this Picture? Choosing a Franchise Location!

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

franchiselocation.jpgOur world headquarters is located in beautiful Johnson County, Kansas. Not far from our corporate office lies the busiest restaurant in the community, Nick and Jakes. It's located in the heart of Overland Park, Kansas on one of the busiest streets in town. With the high incomes of the local population and great visibility, this location seems like a no brainer!
 
However if you study the picture a little closer, you'll see that the restaurant next to Nick and Jakes is up for lease. In fact, for the 4th time in the last six years a restaurant has come and gone here in one of the hottest corners in Johnson County, right next to one of the busiest restaurants.  A banker recently told me that over three and a half million dollars has been spent on build-outs over the last 6 years trying to make something work, all to no avail. Now I know what you're thinking. Nick and Jake's must be so good that nothing can compete! And while that might be the case, it got to be such a topic of discussion around these parts that the owners of Nick and Jake's decided to put something in there - and it failed too! 
 
Why am I telling you all this? Because I think it's so important to illustrate how important (and difficult) it is to find the right franchise location. Choosing a franchise location or finding the right location for your business has a LOT of variables. But a great place to start is by first asking the following question: Will this franchise even work in my area?
 
Some other great questions to ask are:
 
1) What is the total population in my trade area, and how far will customers drive to come to my business? Make sure that you know who your customer is and if there is enough of them to support your business. 
 
2)  Income levels are another important factor. Most all businesses need customers with at least some discretionary income.
 
3) Population density. This is NOT the same thing as total population. Every business has a distance that people will drive for that good or service. For example, a sub sandwich shop may only need a certain amount of people within  a mile of its location to be successful, whereas a specialty hair salon may need to draw people from a six mile radius. Make sure your franchisor can tell you what the density requirements are for your business. 
 
4) Demographic makeup. Whatever your business, it will appeal to a certain group of people. The broader that appeal is the better, but many businesses are successful by catering to an underserved niche. just make sure that you have investigated who those customers are and if there are enough in your area.  
 
5) Competition and saturation does happen. Look at all the competitors you have and see how you stack up. If you aren't able to differentiate yourself and create a better customer experience then what's already there, you may have a tough time getting customers to switch to YOUR business.
 
Which brings me back to that space for lease in the picture. Some spaces - for whatever reason - just don't have that "it" factor.  While those are the spaces that a lot of landlords will encourage you to take, it's those spaces that you need to avoid! Good Luck on Finding a GREAT location for your 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: how to begin a business, Business Tips, small business how-tos, growing a small business, franchising, franchisee support, business success, business skills, franchise success, business ownership, franchise location, choosing the right location

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

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

Franchise Fee - What does this pay for?

Posted by Janon Otto on Wed, Mar 9, 2016 @ 10:03 AM

franchisefee.jpg

"What is the Franchise Fee?" This is perhaps one of the most common questions asked by a potential franchise buyer. And while this is certainly one of the considerations when researching a franchise system, it's definitely not the most important figure to look at. Why is this?

As the franchise fee is the initial fee charged by the franchisor, it allows a franchisee the rights to use the logo and systems, and start a business with those items. But, what you get for that fee with each franchisor does differ. The most important thing that you are paying for is the learning curve that the franchisor paid for with years of previous experience. This is what you need to find out about. For example, there are franchised companies out there with huge differences in the amount of experience they have in operating the concept that you are buying. There are also companies out there seeking out new businesses to franchise. These are usually companies that market franchises. They charge the franchisor the fees to do the legal and set up work to make them franchisable, and then also charge them to do the marketing. If the franchisor does not have many years of operating history, then they will still be learning as they are also franchising - this is can be a dangerous combination!

The learning curve is the MOST valuable asset that you aquire when investing in a small business franchise! At Shear Madness Haircuts for Kids, the operating history was 13 years before franchising. Most successful "new" franchises have suprisingly long operating histories. Five Guys Burgers and Fries may seem newer, however they have been in business since 1986, and began franchising in 2001! Starbucks began opening coffee shops in 1985, and Papa Murphy's Pizza opened in 1981 and started franchising in 1995!

As companies grow, they have successes and failures. This is normal. When you invest in a franchise most of the franchise fee is for the avoidance of those failures! Those failures may have cost the franchisor hundreds of thousands of dollars. This alone can make the franchise fee a real bargain!

Besides the operating history of the original concept, 0ther questions to ask about the franchise fee are:
  • How much training is included with this fee? Every system has different training, some may be at the franchisor's office, some may be online, and some may be at your place. A detailed outline of the training you should receive is included in the Franchise Disclosure Document in Item 11.
  • What items are provided? Do you get manuals? Most often you should get a Pre-Opening Manual and then also an Operations Manual. There may be other items that are neccesary to your business - which of those are provided and what must you pay for going forward?
  • What kind of access will there be to other franchisees or management?
  • What kind of ongoing support is offered with the system?
  • Will the system be improved as it grows?
  • What is the vision of the Franchisor?

Investing in a small business franchise system can be a great opportunity! 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: what is a franchise, Small Business Franchise Information, how to begin a business, how to franchise, what is a franchise fee

The Easy Way to write a Small Business Plan for a Bank Loan

Posted by Janon Otto on Fri, Feb 20, 2015 @ 10:02 AM

Writing a business plan for a small business can be a daunting task - just the sound of it makes it sound BIG! So here are some down-to-earth tips to make the process easy!

small business business plan

It's important to understand that when developing a plan, there are plans for internal use, those for investors, those for bankers, etc. Be sure you know who your plan is going to be for. In this article we are going to focus on the one written to obtain financing. 

If you are applying for a loan for a small franchise business, this process will be a bit easier as much of the information for three of your four sections the franchisor can help you with.  The bank will also know that you are applying for financing for a business that others have been successful in, and that you'll receive guidance and training for your business.  However, they will still want to know about you and why you personally would be a good fit for this business.

But remember, do NOT go for Length! Even though a plan that is pages and pages long may look impressive on the outside, to a banker with limited time it is NOT impressive!  They want to know "just the facts".  So keep your plan to around 10 pages.

They will evaluate you based on several criteria and those are what they want to know about.  As financing has become more and more difficult to obtain, selling yourself and your plan is required.

Section 1: This section is all about discussing the business that you want to start or get financing for. You may find it helpful to do a small SWAT analysis on your business (S-strengths, W-weaknesses, O-opportunities, T-threats of your business idea) - this will help you complete this section. You'll also want to be sure to properly answer the following questions:
  • What is the purpose of this business?
  • What problem does it solve?
  • What industry will it belong to and how much business does that industry capture?
  • Why are you different from what is out there?
  • What is your competition?
  • What research have you done that makes you believe that your business will succeed? (demographics, etc.)

Section 2: This section is all about you or your staff. In it, you'll discuss who the key people are that will be involved in your business. Be sure to sell yourself first (if you are going to be the main employee), then list the others involved and their relevant information.
  • Who are you and your people?
  • What relevant experience and education do they have that would make them competant and able to help you run this business?
  • What is their job responsibility in your business?

Section 3: Here is where you ask for the amount of money that you would like to receive. Make sure and ask for what you will need - including working capital.
  • What are your plans for the money?
  • Detail out what it will be spent for and how you determined what those amounts are.

Section 4: In this section describe how you intend to pay off the loan you are asking for.
  • Estimate your revenues and be sure to let them know how you came up with your figures.  With a Kids Salon Franchise you would estimate the number of haircuts per month, the price of those and the revenue from other services (with reasonable expecations to start slower and grow over time).  
  • Estimate your expenses as best as you can.  Here you should also let them know where you got your figures.  Make sure and group expenditures into easily understandible categories.  For example, talk about your Fixed and Variable Expenses. Fixed are those costs that will not change no matter how much business you do (rent, some salaries, equipment payments, phone, etc.). Variable expenses will change as your business changes (inventory costs, labor, possibly utilities).

If you have pictures or other items that would make this presentation more interesting, by all means add them - but do NOT overdo it!  Only add photos if they help educate the banker on what they will be loaning money for.  Do not just add pictures for fluff.

If you are beginning a small business franchise, then the franchisor can help you with items 2, 3 & 4. The information in the franchisors item 7 will assist you with section 3.  The information in the franchisors FDD item 19 can assist greatly with section 4.  If you are starting a business from scratch, a great resource to walk you through the business plan process is SCORE.

Maybe a franchise could help you in jump starting a new small business!  Download our free whitepaper to learn the four considerations when buying a franchise.

The Top 4 Considerations

 

Topics: franchise, kids salon franchise, salon franchise, kids salons, franchise opportunity, Shear Madness Haircuts for kids, the salon business, Small Business Franchise Information, how to begin a business, Free Resources for Businesses, small business how-tos

Career Change Advice: Buy a Business or Franchise?

Posted by Matthew S on Tue, Jan 13, 2015 @ 13:01 PM

careerchangeBuying any business or franchise can be an exciting and rewarding adventure, but success won’t come overnight! You’ll likely spend a great deal of time, energy and financial resources in order to help ensure the success of your business. And in a way, because you’re making such an important investment, you’ll find yourself putting a little bit of “you” into your business too. Therefore, it’s good to take a step back before starting the whole process and ask yourself the following: Does the franchise you are considering really fit with who you are as a person?

Following are several tips to keep in mind when investigating a franchise.

Personality – Does the franchise you are considering fit with your personality? Do you consider yourself an introvert or an extrovert? Do you enjoy leading, or would you rather be behind the scenes? Are you outgoing, funny, regimented, or reserved? Because there are so many different kinds of franchises that provide a large variety of services, you’ll want to look at areas that suit your personality.  For example, many people who choose Shear Madness Haircuts for Kids are generally a more outgoing personality type who enjoys the fun atmosphere our stores have. They also enjoy working with kids, and like the thought of being able to provide a service that seeks to bring a little more happiness into the world!

Lifestyle – Many people consider investing into a franchise system because of the unique challenges and opportunities that running your own business represents. But it’s important to remember that the kind of lifestyle you have (or appreciate) is an important factor in considering a franchise opportunity. Forcing yourself into a system that isn’t really “you”, can quickly lead to feeling burned out and unhappy.  For example, if you enjoy getting up early and going to bed early, certain types of franchise systems that are open late hours (or 24 hours) may not be ideal for you. Or maybe you don’t really like the thought of having to wear a suit everyday, or prefer more low-key environments over fast-paced high energy work spaces. All of these are important lifestyle preferences to take into consideration.

Skills – Think of looking for the right franchise as looking for the right job. If you have 10 years of experience working as a chef, it probably wouldn’t be a good idea to look for a job as an architect. You simply wouldn’t have the right skills to effectively do the job. Or, if you’re someone who really doesn’t have a lot of experience in managing people, a job that requires management of entry-level staff may not be a good fit. Similarly, when making a decision on a franchise, don’t be afraid to perform an honest look at what your skills are. You can do this through looking at your resume and seeing what you’ve demonstrated an excellence for over the course of your work history. Or you may additionally want to consider what you may enjoy doing in your free time as well. Either way, in order to help ensure success as a future franchise owner, be sure to focus on what your talents and abilities are!

Tools for Assessment - If you would like a little help in figuring out who you are and what really motivates you to get through each day, you might want to the following online resources. The Keirsey Personality Sorter is an online personality assessment that can be done for free at http://www.keirsey.com/ (more detailed reports are available for a fee). iPersonic Career Test also has an online personality test available at http://www.ipersonic.com/career/ that may help you more clearly define your work values.

Exploring a Children's Salon Franchise

Topics: franchise, kids salon franchise, franchise buyers, buying a franchise, franchise opportunity, career change, how to begin a business, how to franchise, reinvent your career, Business Tips, Free Resources for Businesses, successful franchisees