Many of you may have seen a show on TV called Shark Tank. If you haven't, entrepreneurs attempt to convince 6 highly successful business people as to why they should invest their money in the next great business idea. Most businesses start this way and unfortunately it's probably one of the biggest reasons for business failure! 

Many people start their search for a franchise without measuring the most important thing: are there customers for the franchise? More importantly - and don't miss this - is doing what you are doing so PAINFUL (so-to-speak) for the customer to do themselves, that they have to come to you?  In business we call this the Shark Bite (no correlation to the Shark Tank). If your customer can do it themselves or go to you, well that may be like a mosquito bite - and it may be a nuisance that they are willing to live with. However if the customer's pain feels something like a shark bite, then customers will be eager to pay you to ease their pain!  

Great businesses and franchises begin by solving a customer problem. This is why it's so important to try and figure out if the franchise that you are buying solves the pain your customers are feeling. For example, take our Shear Madness Haircuts for Kids salon franchise. I know that many of you reading this may be parents, and let's be honest...have you ever tried to cut your two year old's hair? Trust me, it's a shark bite, and our customers are more then happy to have one of our award winning stylist ease their pain vs. trying to do it on their own. And with our TVs and Xbox games at every station to help provide a positive distraction for their children, they end up coming back for years!

So before you select a franchise, focus on the BIG pain point. Remember that any big problem is a big opportunity, and customers will be more then happy to pay you to ease their pain.

Potential franchise candidates frequently ask me for the phone numbers of our franchise partners so they can validate our concept. If you have never seen or requested a Franchise Disclosure Document, commonly referred to as an FDD, the numbers of all current franchisees should be listed in the back of the document. I recommend that you ask the following questions as a starting point, because without the right answers to these questions you may want to look elsewhere!   

1) Tell me about your journey to find this franchise? - Everyone starts his or her search for a franchise with a journey. Remember your asking someone who was right where you are at some point! Why did they move forward? It will tell you a lot why you may or may not want to.  

2) Could you have done this alone, without being part of a franchise? If the franchisee feels like they could have done this without the franchisor, well, that defeats the purpose of buying a franchise. The franchisee should have no doubt that without the guidance of the franchisor they would have not been able to succeed to the extent that they have.

3) What does your franchisor provide you that benefits you the most? If franchisees can't tell you what benefits them the most about being part of the franchise system, then the franchisor may not be supporting the franchisees to the extent that you may need.

4) Is the Franchisor accessible when you need them the most? Every business will run into those times when you not only need an answer BUT you need it right now! Making sure that the franchisor is available during those times and responsive to the franchisees needs is critical. 

5) What is the impact been on running your business on your social life initially, and now? The most overused word in franchising is: absentee; business is hard and can cause a disruption in your personal life. You can imagine what your day-to-day life will look like, but talking to someone who is living it will give you the real picture.

6) How do you run your business, do you work in the business or do you use a manager? Some franchises you can run with a manager doing the day-to-day operations and some you can't. If you have a full time job that your planning on keeping you better find a franchise that can be run and run well with a manger.

7) What is the most challenging and what is the most rewarding part of owning your franchise? As I mentioned earlier, owning a business is not easy and you should try to find out what challenges the franchisees are facing. At the same time if there is no reward in what you are doing then what good is that? I always like to end with this question; it can go along way to fulfilling your dream or avoiding a nightmare!

These questions are a good starting point in your due diligence process. They will give you a clearer picture of the franchisors support and what your day-to-day life may look like if you buy into a particular franchise system. At Shear Madness Haircuts for Kids your success is important to us, our systems and process have been tested over a long period of time. But don't take my word on that, listen to one of our franchisees answer these questions on the attached recording, and good luck on your search!