Existing or Greenfield Franchise?

"Should I buy an existing franchise, or a ‘greenfield’ site?"

If you’re thinking of buying a franchise, you’re likely to come across this question at some point. There are arguments for both, so we should consider them.

Of course, some of these factors may or may not apply, depending on the business.

Existing business

• Already up and running

• Has a customer base

• Has an income stream

• Likely has a marketing database of prospects

• Has a presence in the local area

• Has plant and equipment

• Has fixtures and fitout

• Existing staff

Greenfield site

• Starting from scratch

• No customer base

• No income stream

• No marketing database

• No presence in local area

• Brand new plant and equipment

• Brand new fixtures and fitout

• No staff

In most cases, a greenfield site will cost less than an existing business, due to the factors listed above.

So, why do it?

So, the question becomes, why would anyone want a greenfield site?

• An untapped opportunity

• Blank canvas – it’s yours to create

• Opportunity to build business value

• Lower entry price

• For those who back themselves 

Questions to ask the franchisor

If you’re interested in getting started in a greenfield site, there are some questions you should ask the franchisor, regarding how they will help you get up and running.

• How will you help me get going – FAST!

• What proven strategies do you have in place for greenfield sites? e.g. pre-launch promotions, etc?

• How have other greenfield sites performed? How long did it take them to breakeven?

• Do your systems specifically cater for start up situations and greenfield sites?

• What experience do you have in guiding and mentoring new franchisees in greenfield sites?

We’re quite comfortable working with new business owners who are starting their business ventures in greenfield sites. In fact, the majority of our clients started in greenfield sites.

But whatever you do, please be sure to get professional advice before you dive in. Even if the entry cost is lower, this is still a big commitment, both financially and emotionally. There are many factors to consider.

The starting point for us is to prepare a Pre-purchase Review. This will assess the financial aspects of the franchise you are considering, even if it’s a greenfield site.

Let me know if you need a hand.

Peter

The power of a shared goal

This is something incredibly powerful about working towards a goal with other people.

It could be just one other, or a group of people.

Some kind of magic starts to happen.

A momentum starts to build.

It becomes some kind of force.

Which ends up being irresistible.

There is a joy and excitement which is generated throughout the journey.

In fact, this tingling of anticipation and excitement is almost more exhilarating than the actual achievement of the goal.

When the goal, or target is actually reached, it’s a different feeling.

It’s a sense of accomplishment.

Of achievement. Of self satisfaction.

Of pride. A reassurance in oneself.

Another brick of self-confidence.

In fact, it’s really important.

And sharing this journey with others, who are working alongside you, toward the same goal, adds an extra element of delight.

A special bond is built.

And a richness to the relationship is created which otherwise could not be there.

Claiming Jobkeeper for September wages - Must enrol your employees today.

30 September 2020 – enrolments close for September fortnights.

To claim payments for the September JobKeeper fortnights, you must enrol by close of business today.

Did you want to start claiming Jobkeeper for wages paid in September?  If so, you must ‘enrol’ your eligible employees in the system.

Today is the last day to enrol your eligible employees.

Wages paid in September will be reimbursed at the old rate, $1,500 per fortnight.

This is a hard date, if you miss it, you won’t be able to claim for wages paid in September.

Enrolling after September

You can enrol for JobKeeper until the program closes, provided you meet the eligibility requirements.

You will need to enrol your eligible employees by the end of each month to claim reimbursements for JobKeeper fortnights in that month.

Let me know if you need a hand

Peter

Is it better to spend up or cut and save during the lockdown?

It’s the classic business dilemma; do we save our nuts like squirrels to get through the winter, or do we plant the seeds and prepare for a good harvest?

Those who argue for ‘cut and save’ would say:

• Keep the money you have in reserve

• Reduce all costs

• Defer all big expenditure

• Cut all non-essential spending

• Clear out your inventory

• Sell unused assets

• Cut staff hours

• Then use cheaper staff

• Find lower cost supply chain alternatives. 

Then there are others who argue the opposite:

• Increase advertising and promotion

• Invest in marketing and sales

• Increase brand awareness

• Improve your website and online presence

• Always keep promoting

• Look for cost effective mediums

• Continue to engage with your customers

• Encourage loyalty purchases

• Develop new products or services

• Engage with your supply chain

• Improve your online offering

• Look for another business to buy

• Buy specific assets

• Find profitable add-ons

• Seek out lower cost providers

The question really is, how will you position yourself to come out the other side?

Be smart during this time of lockdown and restrictions. Be on the lookout for new opportunities, to grow, develop and improve.

Let me know if you need a hand

Peter