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A career shift is probably easier than you think, especially considering all the great options available to you for starting a business of your own. The one thing you want to be most wary of is underestimating yourself, which can be easy to do when feeling unsure about making a change. Leaving your job to start a business of your own becomes a whole lot easier with a franchise since you get complete backroom expertise to help you learn what it takes to succeed. The trick is to find a good franchise that is a good match to your interests, experience and your personal style. A business that suits you best will allow you to spend your days doing what you love while enabling you to apply the skills and knowledge you’ve gained so far in your life and career. This is why you want to make sure you accurately appraise your skills and experience when you start investigating options, or you risk eliminating opportunities that might be a more perfect match. So while we always recommend you consult a franchise coach for assistance in making your selection, there’s a lot you can do to prepare. Start with a thorough appraisal of who you’ve become as a person and professional, so that you are equipped to make the best selection possible. You should understand which of your skills are strongest and which tasks you prefer to do.

6 Business Skills To Consider

Management

How well do you work with people and how well do you get them to do what you want? Consider all aspects of your life. Maybe you have one of those where everyone completes their tasks like clockwork, smiling all the way. Bravo! You are a great manager. If managing people is a great strain on your psyche, you may want to consider a system that includes hiring a manager.

Networking

Building a clientele often requires putting yourself out there, going to meetings, conferences, events and talking to people, giving them a chance to see up close and personal what a great person you are to work with. Hopefully, this prospect sounds like a lot of fun. Otherwise, you will want to consider a business where customers tend to find you.

Leadership

Are you comfortable inspiring others to work hard on behalf of a common goal, creating a sense of urgency and fun so people can enjoy coming to work for you? Do you have a tendency to draw people into your orbit? These are great qualities for running your own business — but hardly necessary to have upfront. A good franchise organization can show you how you can develop your leadership skills.

Selling

Some people have a real knack for selling. If you don’t have a lot of experience in this arena, remember a well designed product or service will practically sell itself, and, again, you can learn from the pros — a network of franchisees available for support and practical tips.

Marketing

Are you experienced at marketing a business and promoting a brand? Then you are a natural for handling the marketing of your own business. If marketing is not one of your strengths then a franchise is only right for you if it comes with a fully developed marketing campaign, as well as a national brand.

Communications

Feel comfortable articulating ideas? Have you written letters, newsletters, memos for work? Led or contributed to a meeting? You likely have good communication skills developed over a lifetime of interacting with people. You just have to be cognizant that with your own business, it’s up to you to explicitly communicate your ideas accurately to clients, employees, and so on. As you can see, not everyone will have complete expertise in all these areas. That’s why a franchise can be so helpful. Their expert support and training will help you fill in the gaps.

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. With a quarter century of experience as an entrepreneur and coach, Dan began the latest stage of his career in 2010 when he bought a franchise — which he calls “the best decision I ever made.” To find out how to start your own business with a franchise or buy an existing business, call Dan at [email protected] or at (484) 278-4589. 

Are you one of those folks sitting at your cluttered desk in a room full of cubicles who finds yourself wondering everyday around 3 p.m.: “Is there something better out there for me?” But by the end of the day, you’ve convinced yourself that the steady paycheck makes it all OK. Sorry to burst your bubble, but there are two holes in that line of reasoning. First of all, in this day and age, there’s no such thing as long-term safety of an assured paycheck. Second, while you may not realize it, there’s a whole category of business ownership that enables you to start a new business of your own — and get a whole new lease on life — while continuing to collect the stable paycheck. Even if your job lasts during this era of mergers and acquisitions and the inevitable wave of layoffs that follow, do you really want to sit back on your heels and accept an unhappy state of affairs until the day you retire? Especially when there are good alternatives? Now is as good a time as any to do something to change that scenario. All it takes is a little investigation to find a semi-absentee franchise that works best for you. That’s right, there’s a whole category of franchise referred to as semi-absentee because you can run the business as a part-time job. So keep your day job as you start up a new business and start planning for the future. Semi-absentee franchises tend to be brick and mortar businesses, where customers find you, and where the system relies on a manager to run the shop. Examples include Great Clips, Supercuts and Menchies frozen yogurt. The franchise system is designed to allow the owner to spend maybe only 15 hours per week, while the manager takes care of the details. Typically, the franchisee builds up to maybe four shops, and the owner manages the manager. The owner can keep track of the business remotely while stopping in periodically to keep an eye on how things are going. The most important aspect of this arrangement is hiring a great manager who can manage the business for optimum results. Usually the franchisor will help you find that manager. Of course, you will want to do your research to make sure you find a good match and the franchise company actually performs as advertised. With a franchise, you can learn exactly what your costs will be, as well as earnings potential. Your new business will come with all the training and support you need to help you get your business up and running to profitability. Whenever you start something new, your own learning curve will likely require more hours at first, but when operations are humming, you will find the balance you seek and an exciting new endeavor to start your transition to a new career. So start investigating today.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan at [email protected] or at (484) 278-4589 to help you create the career you’ve always wanted.

Some businesses arrive and depart about as quickly as sunrise and sunset — think cookies or cupcakes or donuts. Sort of like a one-trick pony, catering to a fleeting taste is far riskier than seeking to serve a market niche with enduring demand. Sure the new cupcake confectionery might be jammed for the few months after opening, but after a while, people may start to crave cookies, banana bread or brioches and they’ll likely end up at the full-service bakery that supplies a treat for every mood. On the other hand, some things, like certain services, just never go out of style. Think about what you need on a regular basis, related to household maintenance and upkeep, educating your children or taking care of aging parents. So when you’re contemplating starting up a new business, always consider long-term viability, larger market forces and filling an ongoing market need. You can find plenty of choices in the service sector. Among the options are:

1. Health Care

Senior care is one of the fastest growing needs as the Baby Boomers age. You can also find opportunities with businesses to modify homes for seniors.

2. Temporary Staffing

Many businesses need employees to work flexible schedules on an as-needed basis. This is especially true in this era of extra-lean corporate staffs.

3. Cleaning Services

You can find great options for house cleaning or business janitorial services. Other ideas include carpet and upholstery cleaning services. In an economy where many businesses have outsourced these jobs, opportunities abound.

4. Business Services

In one of the fastest growing segments of the franchise industry, options include printing services, business coaching services or companies that offer document shredding. So contact a franchise coach, who can help you locate a business that best matches your skills and experience. Then when you take the leap, you’re making an educated decision based on strong fundamentals and solid research.

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.

Almost everyone at one time or another contemplates starting a business, whether to escape from the frustrations of corporate America or to finally find fulfillment for your creative self, long trapped in stifling jobs. Of course, the failure rate for new businesses can seem a daunting barrier. The Small Business Administration puts the survival rate of businesses at only 50 percent over five years. The good news is that the odds for survival improve the longer you’re in business. The toughest part is getting through the uncertainties of the startup period. The truth is not everyone is suited to starting and running his or her own business. And those who succeed learn how to capitalize on their strengths and gather as much preparation as possible before startup. You do not want to learn as you go or, before you know it, your money will run out. Fortunately there are many ways within easy reach to improve your odds. First, you must answer the most basic questions about whether you’ve got entrepreneurial talent and the right experience and skills for running a business. A recent Gallup survey of entrepreneurs found that “entrepreneurial talent significantly increased one’s odds of business success.” What separated these business owners? According to the 2014 Gallup study, they were more likely to:

• Clearly articulate their competitive advantage to their clients
• Make decisions about pricing, product or service with their customers in mind, and
• Spent much more time planning for growth and aligning employee responsibilities with goals

In short, they were strategic in their management. Successful entrepreneurs have confidence, independence and determination, think creatively, can delegate, seek knowledge, and build lasting relationships, according to the study. You might have the skills, knowledge and experience, accumulated after years in the workforce, to successfully manage a new business, especially if you have established backroom expertise to help you along the way. The best place to find added support is with a franchise, which comes with all the training and operating systems you need to get started in a new business. So if you feel you may come up short on some of the qualities shared by entrepreneurs, you can rely on the time-tested experts that have helped thousands succeed as new business owners.

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.

So you’ve selected a franchise and have your initial investment capital saved and now you want to know: How much money will I make?

To answer the question you’ll need to weigh your costs against expected potential revenues.

The beauty of a franchise is you actually have a good shot at figuring all these numbers out. Between the financial disclosure document (FDD) and information available from existing franchisees, you can get a good feel for expenses, as well as potential revenues, so long as you factor in differences related to location, local market and, not to be forgotten, the range of talents and experience individual franchisees bring to their businesses.

Why is it so important to do this math upfront? In a phrase, operating capital.

Lots of folks eager to become entrepreneurs for all the usual reasons —to control your own schedule, achieve work-life balance, be your own boss, and make more money —may neglect to factor in all the capital requirements.

At the beginning of a new business comes the transitional stage. This means you need money to run your business until you learn your way around a new market, new procedures and customer care. During this transition, you won’t generate enough revenue to cover expenses. So it’s essential you have enough capital to keep the circuits humming.

Your first task is to get a realistic sense of how much capital you need to get started. Fortunately, the FDD will provide this view of your costs. Some companies will even provide an idea of potential earnings. A franchise coach can help guide you through the process, but it’s never too early to start your research.

Three Keys to Understanding Your Potential Earnings

Know your Timetable

Most businesses take three to 12 months to start earning profits. The slowest to become profitable are franchises with a lot of costs or ones that take longer to build a customer base. And if the margins are thinner, you need to generate more volume. For example, a document shredding franchise, which requires expensive equipment, may take as long as 18 months to run in the black but can eventually become quite lucrative. Retail franchises can be among the quickest to turn a profit because a good location will quickly draw customers.

Accurately Estimate Your Fixed Costs

The franchise disclosure document provides a list of all your costs —everything you need to open —which are far more extensive than just the initial franchise fee. Examples of the types of fees you’ll find under Items 5 and 6 in the FDD are: IT and system setup and initial marketing. Then comes ongoing fees, such as local marketing additional training, ongoing IT or software costs, costs for audits, insurance, and on and on. In short, all of the costs you would expect to encounter.

In your calculations, you should also factor in the cost of consulting an attorney and accountant, which we strongly recommend.

Estimate Potential Income

Flip now to Item 19 of the FDD to read if the franchisor has made any earnings claims. Only about one-third of franchisors make earnings claims, and how franchise companies address this issue varies.

To fill out the picture, your most important information can be found in Item 20, where you’ll find a list of franchisees. You want to call as many franchisees as possible, preferably those operating in locations similar to yours, to verify all the information in the FDD and get an idea on profits. Word to the wise, avoid the question: How much money do you earn? Instead, try a softer approach, such as: “How long until I can expect to make $100,000.”Then try out different income amounts.

All three steps are essential to your preparation. Doing the due diligence required to choose the right franchise upfront will help you experience the pleasure of being your own boss for years to come.

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.  

Thinking about buying a new business or franchise? Then Caveat Emptor! The best way to protect yourself from stumbling into a bad deal is to carefully research your new business niche and consult a knowledgeable franchise attorney. Buyer beware, often considered a consumer warning, applies just as strongly to those thinking of buying a business. In the world of franchising, federal law has established disclosure rules to help people make wise choices. Still, it pays to consult an attorney that specializes in franchising. Of course, any franchise coach or attorney will advise prospective franchisees first to read the franchise disclosure document (FDD), which the law requires be written in standard English, so it can easily be understood by the non-lawyer. You still need a lawyer who specializes in franchises to review the franchise agreement or contract to make sure your interests are protected. Since experienced franchise lawyers know firsthand where franchisees get into legal difficulty most often, they can help you avoid the pitfalls that may exist in some franchise agreements. Most of the items in the FDD are incorporated in the franchise agreement, but an attorney can help you review the first four items, which provide background on the business and its senior executives, most particularly whether they’ve been involved in previous litigation or bankruptcy. And while there are costs involved, you can find an attorney who will provide these services for a flat fee. You should consider it part of your cost of getting into your own business. “I get phone calls daily from people who did not consult an attorney upfront,” said Nancy Lanard, a Philadelphia attorney who specializes in franchise law and works with clients across the country. “It’s much harder at that point.”

Before buying a franchise, be sure to review this checklist:

1. Review Franchise Agreement

Five or 10 years ago, most franchise agreements were completely non-negotiable, Lanard said, but now she negotiates non-material changes to most franchise agreements to protect the interests of the franchisee. Franchise companies are reluctant to negotiate any material changes for an individual franchisee because it would require them to revise their franchise disclosure document, an expensive proposition, she added. In her review of the contract, Lanard looks for issues that might create undue financial burdens on the franchisee, including how notice on default is handled and remedies applied.

2. Check Trademark Registration

Since the trademark is “the cornerstone of what they’re buying,” Lanard’s firm checks the trademark registration to make sure another firm isn’t operating under the same trademark in the designated territory — not an unknown occurrence.

3. Set Up A Legal Entity

Lanard strongly advises franchisees to set up a legal entity before signing any agreement with a franchise company to protect themselves from third party claims. Each location should be a separate entity, she added. Her firm charges a separate flat fee for this service.

4. Negotiate A Lease

“A lease can make or break a franchise,” Lanard said. Good franchisors should offer help finding a good location. They might have demographic studies and a great relationship with local brokers. They also can evaluate the lease from a business perspective, help negotiate good business terms, favorable rent, build-out costs, renewal terms, and so on. “Leases are highly negotiable,” Lanard said. A lawyer can protect the franchisee from onerous costs that landlords may try to impose, and a good lease can save a lot of money over the long term. A separate flat fee is charged for this service.

5. Protect Territory

Disputes over territory are “probably the No. 1 litigated area of franchising,” Lanard said. A good franchise attorney will make sure that the language in the agreement regarding territory affords the franchisee an actual separate, exclusive territory. A cautionary tale is a franchise that set territory based on zip code, which allowed franchisees to open across the street from one another — not a great way to stay in business.

6. Generally Good Advice

Likely topping this list will be for prospective franchisees to carefully study the fees and other costs — items five to seven in the FDD — required to set up a franchise. Take the most conservative approach since many businesses fail as a result of having insufficient capital to sustain the business until it can operate in the black. Good research cannot be over emphasized. Lanard tells a story of a woman who phoned, excited about purchasing the franchise of her dreams in the automotive sector, a franchise she had aspired to operating since she was a little girl. While she wanted Lanard to review the franchise documents for her, Lanard suggested she interview franchisees to see if they were satisfied with the franchisor’s support and training. When the woman called back, she reported that all the franchisees she spoke to were unhappy and wished they had never bought into the franchise company at all. Better to face this type of disappointment than the losses that can accrue as a result of signing a bad contract and trying to to fix it later. 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. 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.