Finding Franchise Success in the Next Recession

Posted by Jim Otto on Fri, May 11, 2018 @ 13:05 PM

SuccessI recently attended a webinar with one of the largest franchising financing lenders in the United States. I would like to explain all the graphs that they showed us but the bottom line was this: all the signs point to the next recession hitting sometime in the next 24 months. 
  • Credit Card debt and margin buying of stocks are back to record levels.
  • The small business optimism indicator  is at record levels (this is a contrarian indicator). 
  • Retail rents are at extreme levels causing over building, even though demand is decreasing  for retail space! 
 
But what I was most interested in was a chart of the top 15 franchises according to the SBA. I can't tell you those names, but what I can tell you is some commonalities they had. 
  • Four of the top 15 were child related.
  • Most all were recession resistant. 

At Shear Madness Haircuts for Kids we feel like we combine both of these traits. As most parents look at a haircut as a necessity and not an option, and a haircut will never be replaced on the internet! Parents will always spend money on their children. They will cut out a lot of luxuries and services for themselves, but never a service that makes their children look better and feel better about themselves!
 
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 one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this hair salon business opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, 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! 

Exploring a Children's Salon Franchise

Topics: franchise opportunity, Shear Madness Haircuts for kids, kids haircuts, Business Tips, small business how-tos, growing a small business, business growth, franchise research, evaluating a franchise, franchise, franchise success, franchising, franchise ownership, business success, kids hair salon, franchise success, haircuts for kids, best kids hair salon, small business success, owning your own business, hair salon business

There has never been a better time, ever!

Posted by Jim Otto on Tue, Jan 16, 2018 @ 12:01 PM

Growing.jpgThere has possibly never been a better time to start a franchise business, ever. Not only is the franchising model proven, but with a pro-business administration in Washington, the regulatory, and tax environment, along with consumer spending power has never been better! Please don't take my comments as a political endorsement of any politician or political party. I simply think that the facts stand on their own.

For example:

  • 4.1% unemployment rate is at historic lows 
  • Consumer sentiment on the economy is high and improving
  • The stock market is at record highs
 
This begs the question, will the good times continue? And if so, what franchises should I be looking at? A  good place to start is by asking yourself what type of business you see yourself operating. You'll also need to give an honest personal assessment in regards to the type of hours you'd like to operate, what you enjoy doing and what you're truly passionate about. Then you will want to look at franchises with strong brand recognition, a good track record of performance and a good reputation between past and present franchisees.  
 
Do your homework, make sure your significant other is on board, and get your financing in place. Then go for it! Because the way I see it, there's never been a better time to start a franchise, ever! 
 
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 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, franchise success, 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! Exploring a Children's Salon Franchise

Topics: franchise buyers, buying a franchise, franchise opportunity, Shear Madness Haircuts for kids, Small Business Franchise Information, reinvent your career, Business Tips, growing a small business, franchising, franchise research, franchise growth, evaluating a franchise, franchise ownership, business success, kids hair salon, franchise success, business ownership, sales, smart investments

Try Top-Down Franchise Selection!

Posted by Jim Otto on Tue, Jan 16, 2018 @ 12:01 PM

greatfranchiseteams.jpgWhen I was a Stock Broker, we would always start one place when we were looking for companies to invest in - and that was at the top! Of course we had certain qualifications that we looked for in management teams, but we always, without fail, looked at their level of education.
 
Now this isn't meant to make anybody feel bad. We all know or have heard stories of men and women without so much as a high school education making millions through hard work and perseverance. But here's the thing: I challenge you to find any Fortune 500 company in America where the CEO doesn't have a Master's Degree in Business Administration (or MBA). Why is that? Because in order to get an MBA in this Country, you have to prove that you have the ability, discipline and desire to learn at a higher level.  People with MBAs in this country earn about 25 to 30% more then undergrads, because of all the reasons mentioned above.  
 
So the point is this: we as Stock Brokers always wanted to invest our money with intelligent people who had shown they not only had the credentials - but the drive to succeed. Shouldn't the same apply to franchising? Wouldn't you prefer to make a wise investment into a franchise run by really smart people? 
 
Some other traits of great franchise management teams are:
  • The are focused and plan strategically.
  • They have  solid knowledge of not only their concept, but the industry that they're in.
  • They are goal and result oriented.
  • They are bound by a mission statement.
  • They are competitive and excellent communicators.
 
So that's why I can confidently recommend that when choosing a franchise, you might really benefit from doing what I used to do when I was an stock broker...and that's simply starting at the top! 
 
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, our staff (which has years of business experience and a robust resume that includes an MBA) can 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, the franchise selection process, 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 begin a business, reinvent your career, Business Tips, successful franchisees, small business how-tos, business growth, franchising, franchise research, evaluating a franchise, business success, business ownership, sales, franchise management team, smart investments

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

Item 7 Download

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

Making Sure Your Franchise Door Fits!

Posted by Jim Otto on Tue, Oct 17, 2017 @ 15:10 PM

opendoor.jpgIn his book START WITH WHY, Simon Sinek tells the story of a group of American car executives who went to see a  Japanese assembly line. At the end of the line the doors were put on the hinges just like in America. However, something was missing. In America the workers at the end of the line tapped the door with a rubber mallet to make sure the doors lined up properly. In Japan that job did not seem to exist. Confused, the American auto executives asked at what point they made sure the doors fit perfectly. The Japanese guide looked at them and smiled sheepishly, "we make sure it fits when we design it". You see, in the Japanese auto plant they didn't examine the problem and accumulate data to figure out the best solution - they engineered the outcome they wanted from the beginning. If they didn't achieve the desired outcome, they understood it was because of a decision they made at the start of the process. 
 
My suggestion would be to apply the same rules before you buy into a franchise. Buying a franchise should be a process where you examine all the possible outcomes. Some important questions you might want to ask yourself in the exploration process BEFORE you buy might be are... 
  • How many hours will I need to work and how will that change my lifestyle? 
  • How much money can I reasonably expect to make for the money I invest? 
  • Can I manage people and can I find enough workers for my franchise? 
  • Is there a demand for the service in my area?
  • Does the franchise I am considering have a proven track record of success?  
  • Do they have the training and support that I need, when I need it?  
  • If my franchise fails, will I be able to recover and still live comfortably?  
 
Making sure that you understand what you're getting into and what the desired outcome might look like will really go a long way toward giving you the comfort level you need to make a decision. Otherwise you may end up feeling like you should hit yourself over the head with a rubber mallet! 
 
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!

 Exploring a Children's Salon Franchise

Topics: franchise buyers, buying a franchise, franchise opportunity, how to buy into a franchise, Small Business Franchise Information, how to franchise, Business Tips, successful franchisees, growing a small business, franchising, franchisee support, franchise research, evaluating a franchise, franchise ownership, business success, why buy a franchise, franchise success, business ownership

Risky Franchise Investments? How do you know?

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

failing.jpgMost people who are familiar with franchising will look at the Franchise Disclosure Document, known as the FDD, differently from people who are just starting the process.
 
Hours of time can be spent on going through the two most commonly looked at areas of the FDD: the Item 7, which is the cost to build out a particular franchise, and the Item 19, which is the Financial Performance Representation (or FPR). Some franchises will choose to give you the numbers of their stores in the Item 19, and many will not, simply stating that they choose not to disclose those numbers at the present time. 
 
Where most people stop at the Item 19 is going one or two more pages to the Item 20 - which is a great way to gauge the health of a particular franchise. In the Item 20 you will typically find a series of tables titled OUTLETS AND FRANCHISE INFORMATION. If you go through these tables carefully you will see some columns titled outlets closed and outlets transferred. This is where you find out if a franchise system is failing. A large number of franchises closing speaks for itself, and if a large number of franchisees are transferring or selling their stores, then why would they do that if the franchise is so good? 
 
Reading the FDD and understanding what it says is a big part of finding the right business. If you don't feel comfortable going through that big thick document, engaging the services of a good franchise attorney  may help you make the right decision. Good Luck in Your Search!
 
Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

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

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

Item 7 Download

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

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

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

dontfailatthis.jpgAh yes! When it comes to buying a franchise, everything is set up for you to succeed. Support systems are in place, along with great training - all you have to do is follow the franchisor's proven systems! Right? 
 
Unfortunately there is a missing link to all of this. Your ability to manage, communicate and motivate your staff and employees is crucial to your success. If you have this ability, you will be able to create a great work environment at your business. This helps create customer satisfaction, which in turn can create strong retention and word of mouth for your business,  which will then help create higher revenue. On the other hand, if your staff is constantly turning over it can lead to things like low moral and infighting inside your business. Unsurprisingly, customers can feel that when they come in, and they won't come back.  Also, the cost of retraining staff and employees due to a high turnover can cost your business. According to a recent CAP study, the cost of replacing a $10 an hour retail employee is $3,328. 
 
Additionally you will need to communicate with a few unhappy customers from time to time, as they may not have had the experience that they had expected at your franchise. You and your staff's ability to convey your company culture to your customers is another part of the communication skills that you need. No wonder candidates that have had previous  experience owning and managing a business are so valuable to franchise systems. Good Luck with your search, it's an exciting time to own a business!
 
Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and franchise success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

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

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

Exploring a Children's Salon Franchise

Topics: franchise buyers, buying a franchise, franchise opportunity, how to buy into a franchise, how to begin a business, Business Tips, business growth, business relationships, franchising, franchise research, evaluating a franchise, franchise, franchise success, franchising, franchise ownership, business skills, franchise success, business ownership

Tips on Becoming a Multi-Unit Franchisee!

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

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

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

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

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

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

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

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

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

Exploring a Children's Salon Franchise

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

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!

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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