Psst! Don’t be ambushed!
You’ve made up your mind. You are taking the leap. After a lot of research, talking to franchisors and franchisees, you know the franchise you want to invest in.
BBQ Ambush
Be prepared for an onslaught of questions from friends and neighbors at that upcoming holiday barbeque as soon as you share your news! You may not actually be asking for their advice, but they’ll probably share it all the same. Unfortunately, it is pretty common for the friends and family of potential franchisees to try to “scare” them out of making the franchise purchase. In fact, in the industry, it’s called the Ambush and keeps many people from reaching their goals of business ownership.
Being prepared is your best defense. Here are some of the FAQ’s you may get tossed your way.
Scare tactic #1: Why do you want to own a business? Don’t most small businesses fail?
TRUTH: While there is a high failure rate for small businesses, it tends to be lower for many franchises. One of the reasons businesses fail is they are undercapitalized. With a franchise, the total investment is detailed in the franchise disclosure document including working capital needs for a minimum of the first three months. Companies require a certain net worth and liquidity before they will award a franchise. This helps to eliminate the “I didn’t know about the cost for this additional license or permit.”
Scare tactic #2: You’re investing a lot of money in this. What if you fail?
TRUTH: The majority of people come to franchising because corporate America has failed them. Americans today are finding they work longer and harder and earn less. Not only are people not receiving the recognition and advancement they deserve, once you reach a “certain age,” you are likely to be laid off and replaced with a younger, cheaper employee. People who invest in a franchise are not just buying a business – they are investing the money in themselves.
Scare tactic #3: Starting a business sounds risky. Why don’t you just change jobs if you are unhappy?
Speaking of risk, think about staying in corporate America! Job security is a myth. For people who want to create wealth for themselves and not the stockholders of their employer, business ownership is a tempting option. Instead of relying just on your own experience to succeed in business, you have an entire franchise company dedicated to making sure you have all you need to succeed when you partner with a successful franchisor.
There are only three investments you can make to build equity and create wealth – the stock market, real estate and a business. People who invest in a franchise do not just own a business – they are investing in one of the very few viable means to generate wealth.
Don’t let anyone steal your dreams. If you need more ammunition email me at dpleuss@franchoice.com.