If you’re like most Americans, your work time horizon is much longer than it used to be. As a result, there’s less reason than ever to stick it out with a go-nowhere job or to sink into despair after being downsized out of a job as many were during the Great Recession.

Surveys show that most of us don’t have enough retirement savings, and we can’t really retire the way our parents or grandparents did because we’re living longer and require more money to make it. Many don’t plan to ever retire.

More than half of Baby Boomers expect to work at least to the age of 66 or older, and two-thirds expect to work for pay in retirement, according to a recent Gannett Poll for the Wall Street Journal.

Like many, Ed Flanagan, of Huntington Valley, Penn., who started a new business with a franchise in his 50s, said he intends to work “until I die,” though in Ed’s case it is because he enjoys his work, not because of financial need.

Ed had risen to Chief Financial Officer for a real estate developer, but that industry started collapsing with the market crash in 2008. Ed needed to start looking for new opportunities. He hoped to parlay his financial experience into a new career that he could control.

After consulting a franchise coach, he decided that purchasing a franchise had great upsides, from a ready-to-go system already in place to a network of support that would help him get through the start-up phase.

A couple of weeks later, he went to a Franchise Discovery Day at Expense Reduction Analysts of Addison, Texas, and took the leap.

Five years later, he couldn’t be happier with his new business, in which he helps his clients find cost savings, which translate into a fatter bottom line for their businesses. Using a network of analysts, his fellow franchisees, Flanagan is able to obtain an average savings of 20 percent for his client.

In his new career, he’s achieved a higher income with far more freedom to allow him the lifestyle he desires, but, he acknowledges, it wasn’t exactly an easy transition.

Of course, at the time of his purchase, the U.S. economy was still struggling to recover from a crippling recession, and many business owners were loath to think outside of the box, even for a service that Flanagan realized was a no-brainer that could make the difference between profit and loss for many businesses.

“When you’re your own boss, it’s all on you. You have to get up in the morning and do the work. You’ve got to keep plugging away,” he notes. “Nobody manages you, it’s up to you how productive you will be, particularly at the beginning.”

While acknowledging the difficulties he faced, noting that in his mind it “took too long” to achieve profitability, his business is now rolling along quite well, growing by 20 percent each year.

“The best thing is getting referrals,” he said. But that takes time, through making contacts and establishing networks and business relationships. So that after five years, 70 percent of his clients result from referrals.

Best advice Flanagan’s got for those about to embark on a new career as owners of your own business:

“You’ve got to have thick skin… Expect to have at least a year of living expenses set aside at the start. You might not need that much, but you sure don’t want to get caught short. If you’re willing to work hard, you can really have a nice lifestyle and make good money. I never had a job before where I could look out the window and tell myself ‘It’s a beautiful day. I’m going to take the afternoon off to play golf.’”

Of course, not all business types travel the same trajectory, so consult a good franchise coach, and do your research so you are prepared to succeed for the long haul and achieve the career and lifestyle of your dreams.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

© Dan Citrenbaum 2022

The stories are legion about people who’ve breathed new life into their careers with a franchise or even a slew of franchises. But there are some pretty notable misses in the franchise business, as well. Just think Quizno’s or Curves, two franchise systems that, for different reasons, have faltered: Quizno’s, the once promising sandwich shop, is now in bankruptcy; and Curves, fitness centers for women of a certain size, is a shadow of its former self. While it’s true that nothing in life is guaranteed, you can do quite a bit to minimize your risk by thoroughly checking into a franchisor’s track record. The federal government requires all franchisors to disclose much useful information in its Franchise Disclosure Document (FDD), and then, of course, the franchisees can tell you firsthand about their experiences with the company. Critical to your background research is your conversation with the franchisor. Most franchisors will have a standard protocol for potential new franchisees that include in-person and telephone meetings with selected executives as well as lots of reading materials to introduce you to the franchisor’s system. You need to use this opportunity to zero in on the issues that are critical to helping a new franchisee succeed.

9 Key Questions To Ask Franchisors

Here are nine key questions to ask franchisors:

1. How much will it cost to purchase the franchise?

These numbers will be broken down and listed in the FDD, but you want to hear what the franchisor has to say on the subject. If they try to sugarcoat the costs in any way that doesn’t match your background research, alarm bells should sound in your brain. You always want the facts delivered to you straight. After all, one of the worst positions you can find yourself in is to have run out of capital before your business becomes profitable.

2. What is the background of the business and company executives?

While this information, including previous litigation, will be listed in Items 1-3 of the FDD, you want to get a sense of who these people are. Follow your gut. If you feel someone isn’t being genuine or truthful with you, stay away.

3. How old and established is the franchise?

Ask executives about how the company has evolved and, ideally, improved over the years. If it’s a fairly new franchise, what are the company’s plans for growth, and how will they help their franchisees to succeed?

4. What is the success rate of franchisees?

They may give you a rosy window into franchisee success, but you can ask good questions if you’ve first read about any claims the company may have made in the FDD. You should also be more knowledgeable if you’ve already interviewed franchisees for whom you can find contact information in the FDD.

5. What type of training program does the franchisor offer?

How much ongoing support will you get? Are particular executives assigned to your region? Will you always be able to get someone on the phone for a consultation?

6. What exactly is involved with the system?

You need to determine if this this a system you are capable of following. Also is the system sufficient to help you achieve success. Sometimes, newer franchises may still be working out the kinks.

7. If things go badly for a new franchisee, what does the franchisor do to help?

Is there a triage system of some kind? Good franchisors should have adequate support to help you during the start-up phase, when you may hit a few stumbling blocks.

8. How competitive is the market?

It might seem like some business sectors are flooded with competitors. Maybe that means the field is too crowded. That might, however, be a sign of strong, growing demand. You will want to know how the franchisor feels about local competition, and what plans they have for helping you to succeed in a competitive market.

9. What activities does the owner spend their time on?

Just because McDonalds sells hamburgers does not mean that the owner spends their days flipping burgers. When you first consider a franchise, the role of the owner might also be surprising. You will want to learn what tasks take the owner’s time. Then, you can assess if you have the right skills and interest to excel in those areas At the end of the research, after you have talked to several franchisors and narrowed down your list to one, you will visit the franchisor on a Franchise Discovery Day. Check out whether the infrastructure is actually in place. Is there a training center? Are the executives interested in you? Can you establish a good rapport with them? And only then will you be ready to proceed. Of course, before you sign on any dotted line, you will want advice from objective experts, such as a good franchise attorney. 

This post was originally published at an earlier date.

This post was originally published at an earlier date.

Buying a franchise is one of the quickest, safest ways to start your own business, but a franchise is not for everyone, particularly if you’re the type of person who likes to blaze your own trail.

For starters, to be successful with a franchise — that is to maximize your potential earnings — you must be prepared to follow the franchisor’s system, the time-tested method the company has for virtually every aspect of its operations, including staffing protocols, an advertising campaign and store build-out plans.

After working with dozens of franchisees over the years, I still see new franchisees decide they can cut corners, for example, by declining to hire enough people to cover the day-to-day responsibilities of meeting the needs of customers.

The owner may decide to save money by doing some of the work himself, for example, cleaning houses or caring for seniors. As a result the owner has less time to build the business, creating a steady and growing clientele to generate earnings. While that owner may save some upfront costs, he or she loses long-term earnings potential.

So how do you know if you are a good candidate for a franchise? Answer eight easy questions:

1. Are you prepared to thoroughly research the business?

Selecting a franchise may be your first most important step, and the process requires solid research, from reading background materials to putting shoe leather to pavement and visiting franchisees.

2. Are you prepared to work hard?

Just because the business comes with a system doesn’t mean you won’t have a learning curve. Of course, once you have good employees in place and operations running smoothly, many franchise operations will allow you to take an afternoon for golf or to attend a child’s track meet. Many franchisees set a realistic goal to work 30 to 35 hours per week within three to five years of starting their business.

3. Can you call for assistance when needed?

A good franchisor wants to help you through the start-up phase, so to take full advantage of what you’re paying for, you need to be willing to ask for guidance. A good franchisor will likely offer many good suggestions, possibly a long to-do list that will require time to implement.

4. Do you have enough capital to set up the business to operate as designed?

Before you buy the franchise, your research should have told you how long it will take to operate in the black, and the Franchise Disclosure Document will tell you your upfront expenses. Getting to profitability varies by location and franchisee. You will need to be work hard and pay operating expenses for some time before earnings begin.

5. Can you accept paying the franchisor royalties and other specified fees?

These fees are the price you pay for a proven operating system, built-in research and development, a fully vetted list of suppliers, as well as an advertising campaign and ongoing support and training.

6. Will you accept structure in your business?

If you would rather create your own approach to a unique business that reflects your particular vision for a product line or service, you don’t want a franchise.

7. Can you accept advice from authority?

When you buy into a franchise system, you are part of a team, and the franchisor needs each of its franchisees to present a consistent image to the buying public. No reinventing the system.

8. And, most importantly, can you trust the system to work?

If the answer is no, then don’t buy the franchise.

Ideally, you will answer yes to each of these questions. If you answered no to more than two, then you might want to consider an independent business. I also suggest you consult a franchise coach, who is in the business to help you make the best decision to ensure success.

After all, what you want most is to have a business you enjoy in which you can excel and which will also earn a tidy profit.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

*This post was written by Career Confidential Expert Dan Citrenbaum of The Entrepreneur Option. Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (48)278-4589.

Discovery Day presents a make-or-break moment for many would-be franchisees.  For Megan Yu, a visit to the franchise parent company of Signarama, United Franchise Group, in West Palm Beach, Fla., helped seal her decision. Of course, by this time, she and her partner, Andy Yu, her father, had already spent almost six months researching businesses they might open in Ann Arbor, Mich. Casting a wide net at first, they looked at all options, including purchasing an independent business. They chose a franchise because they liked all the support and training offered as part of the deal. “For me it was the one-on-one interactions with the owners that was huge,” Megan said. Meeting other franchisees who shared their own experiences and offered a ready support network raised Megan’s comfort level with this new business. During a carefully choreographed Discovery Day, Megan was greeted by her “host” at her hotel and taken to company headquarters, where she met with current franchisees, technology, and financial support staff. She toured a “brand new, state-of-the-art training facility,” all of which convinced Megan this was the business for her. Franchise Discovery Day will either reel you in with a display of stellar services and support staff or you’ll discover something about the franchisor that sends you to the exit with a feeling of doubt. For example, you may find the CEO has recently changed and you’re not sure about the transition. Or perhaps, you’ll discover you don’t like the support staff. For Megan and Andy, the advantage of a franchise, with all the systems in place to help them through the start-up phase, eventually won out over other options. Megan, 29, who had been working as a manager of a retail store, gave her month’s notice soon after the Franchise Discovery Day. “It boils down to having a world-recognized name and, of course, corporate support,” said Andy Yu, 56, a retired engineer. “We don’t want to get into all these miscellaneous details that will consume all our time and effort.” So, instead of figuring out how to negotiate the best lease agreement, select office furnishings, stationery, and myriad other necessities of their new operation, Yu said, they could spend their time on activities, like sales and marketing, that have more direct impact on the bottom line. They hope to open their new sign-making business by late September. So, how do you prepare? Said Yu: “Do your homework.” Before you even arrive for Franchise Discovery Day, you should:

Do A Comparison Study

Look at a multitude of business types that might suit your experience, interests, and lifestyle.

Read The Franchise Disclosure Document

Federal law requires franchise companies to disclose much useful data, from a list of all their franchises to detailed financial information. Read through this carefully.

Research The Market

You should be confident this business type will work in your location.

Talk To Franchisees

Interview as many as possible to hear about the franchise company’s support systems and how helpful these are. Then, when you get to Franchise Discovery Day, you’re armed with highly educated questions that will enable you to learn if this really is the team you want behind your new business.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

When it comes to choosing a franchise, it’s not just your perspective that matters. The franchise company has a clear point of view, as well: They want to see if you can follow their system.  While you go through your research, winnowing down your list of possibilities to one, the culmination of the process brings you to Franchise Discovery Day, where you get an up-close immersion with the franchise company —and you find you’re ready to sign on the dotted line or not. The franchiser has a strong interest in making a good match, as well, since franchising ties you together for the long haul. Both of you have a vested interest in the franchise succeeding —you to make a good living and the franchise company to protect its brand name and maximize its own profitability. While we always recommend in-depth research of your own, once you start to focus on a single business, you’ll find the franchiser has a specific process to prepare you, as well. As Troy Thomas, regional vice president mid-Atlantic region of United Franchise Group (UFG) said, Discovery Day “allows the executives with the franchisor a chance to meet and spend a little time with the franchisees to see if it’s a good fit.” And, on the flip side, he said, Discovery Day “allows the franchisee to gain a complete picture of the support network and the value that is typically unseen by a typical franchisee in the field.” The West Palm Beach, Fla.-based firm owns a range of franchises, including Signarama, SuperGreen Solutions and EmbroidMe. By the time Franchise Discovery Day arrives, Thomas said, a UFG executive will have already had meetings with the prospective franchisee, preferably in person, and taken that person through a “four step process.” If it’s not likely to be a good fit, he said, people discover this as they go through the steps. “If you can’t follow the steps, you probably won’t be a good candidate for following the franchise system,” he added. Explained Thomas: “To be successful, it’s not about reinventing the wheel, but rather following the model.” “The best franchisees come from a corporate background so they understand structure, but they have an entrepreneurial spirit and they want to control their own destiny,” he said. “Of course, entrepreneurial types can also be successful franchisees.” Bottom line: It’s about the system. Thomas said they see hundreds of people a year at a Discovery Day, and everyone who comes through gets individual attention. By the time they arrive, they tend to be very interested. “And the vast majority purchase with us,” he added. As a result of this process, Thomas said most of their franchisees are successful. Thomas, who himself as a career-changer, having spent years in newspaper publishing, believes the advantage of a franchise is that it allows people completely new to a business to hit the ground running. “With an independent business, you have to find all your own equipment, vendors, location, hire employees, learn how it all works, figure out your pricing, and that’s before you even sell a thing —a lot of expense and time,”Thomas said. “A good franchise can take you through that a lot faster and give a head start.” So, while you have your checklist, it’s good to remember so does a franchisor —reassurance that the company is working to create the best possible conditions for success.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.  

If you’re one of the 90% of Americans employed full-time by someone else, chances are you’re not feeling much satisfaction at work. Some of you are stuck with a boss who makes your lives miserable, while others may be merely bored or vastly under appreciated. Maybe you should become your own boss and start a business. Only 30% of Americans are actively engaged in their jobs, according to a recent Gallup report, State of the American Workplace. Not only does being unhappy at work lead to a whole range of obvious complaints, it can also take a toll on your health, the survey reported. One way to improve your situation is to strike out on your own. So, how do you know if you’ve got what it takes to run your own business? Just like most things in life, what separates the whizzes from the rans is preparation. Do your research, write a realistic business plan, raise sufficient capital, and your odds for success go way up. Even before you pinpoint your business, you’ll need to start by asking yourself key questions to determine whether you’re ready to leave a sure paycheck for the chance to take charge of your career for life.

Entrepreneur’s Checklist: 7 Things You Need To Start A Business

Here’s the entrepreneur’s checklist. In order to start a business successfully, you will need the following:

1. Support from your family

When undertaking such a major life change, it’s critical you have your family behind your decision to give up your job to follow your dream. As you may go through a financial fallow period, their support can help you persevere.

2. Commitment and dedication to making your business succeed

You’ve heard the phrase: You’ve gotta want it more than anything else. Or how about: Hungry for success. The point is you have to believe in yourself even when faced by setbacks. Sometimes that means aggressively courting clients or revising your business plan. Surround yourself with critical support, including a good attorney, accountant, and business coach.

3. Sufficient capitalization or willingness to take on debt

While you will likely need to finance some of your startup costs, you should have sufficient resources set aside to get you through the startup period until revenue begins to exceed costs and the profits start rolling in.

4. Management skills

If this is one of your strengths, bravo, but if not, you may need to investigate what it takes to manage employees. If you choose a franchise, you’ll get ongoing training to help you learn the art of hiring, retaining and getting the most out of your workers. Alternatively, you could purchase one of the many franchises that do not have any employees other than the owner.

5. Marketing

How do you see yourself getting customers? The answer to this question will dictate which businesses best suit your style. If you’re an expert at networking, you’ll likely find it easy to develop a clientele. For those who prefer that customers find them, either due to a good location or national advertising campaign, you might want to try a retail operation.

6. Desire to develop your own or follow someone else’s system

You may be well suited to a franchise if you like the idea of following a system that’s been perfected over time and working well for franchisees around the country. Or you may prefer to control every aspect of your business and make your own unique contribution to the marketplace.

7. Tolerance for risk

Even in today’s job market where a steady job is no sure thing, starting your own business requires you to be comfortable with risk. If you believe in your vision and have the moxy to push through the learning phase, you greatly improve your odds. If you’ve checked most of the items above and you’re ready to move forward, we recommend you consult a coach to help you decide on a business that suits your skills and experience. Once you turn the tables and occupy the boss’s chair yourself, don’t forget you still want to make your employees feel valued, help develop their strengths so they, too, can feel satisfied and engaged at work. After all, you’ve already walked in those shoes. And happier employees can go a long way toward helping you make your business a success. Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.