I’m a corporate – get me out of here!

I’m a corporate – get me out of here!

So you’re working in a corporate job and thinking about buying a franchise…

The good news is, there are certain aspects of corporate life which place you in good stead.

  1. Systems and processes. A good franchise has well developed systems and processes, and they want you to follow them.

  2. Dealing with people. Knowing how to deal with others is an important element in running your own franchise. From customers, to staff, to suppliers, to dealing with the franchisor.

  3. Long hours. Many people in corporate work long hours. This is part of life when you’re running your own business!

The end of year rush

The end of year rush

Running your own franchise business allows you to achieve your greater goals in life: controlling your future, choosing your lifestyle, spending time with your family etc. But just like starting with any challenge, navigating the business world can be confusing - and tricky! That’s where the instantaneous benefits of franchising come into play: the hard work is already mapped out! You just need to take a leap of faith, and with a good accountant by your side to keep you covered. Give us a call if you’re ready to take the plunge.

What can you ‘bundle up'?

What can you ‘bundle up'?

One of the most successful sales and marketing strategies is to ‘sell in bundles.’ This is where you bundle up more than one product or service to provide a broader offer to your customers. The customers are happy because they are getting better value from their purchase. It also allows you to provide more goods or service to your customers. It is a great way to build additional sales revenue. If you are looking to increase sales, you should consider bundling up a number of your products or services.

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

There are some businesses who are really struggling financially at the moment.

For those business owners, the best advice we can give at the moment is this: you need to get on top of your numbers.

If this is something you’re not comfortable with, follow these steps to get started.

  1. Put together a cashflow forecast for the next 4 weeks.

    • That means, estimating how much cash you think you’ll be getting in each week, for the next 4 weeks.

  2. Next, estimate how much you think you’ll be paying out each week for the next 4 weeks.

  3. Do this for each week, not just the total for the 4 weeks all thrown in together.

    • That means, Week 1: Money In, less Money Out, how much is left.

    • Then, Week 2: Money In, less Money Out, how much is left, etc.

  4. Next, see what it looks like (i.e how bad is it?)

  5. For most people, their biggest concern is getting enough cash in to cover the bills.

  6.  So, make a list of all the bills you owe, including the Tax Office and Super.

  7. List them on one page. If using software, make sure it’s up to date then review the Total Payables report.

  8. Then, contact all of your suppliers, including your banks and landlord.

  9. Communicate with them. Let them know what’s going on. If things are bad, tell them. Or if you can see it turning around, let them know that too.

  10. Think carefully and set a plan.

Remember, communication is key in these tough times. The temptation is to bury your head in the sand and pretend things aren’t that bad.

This is not a good strategy.

Be brave and be bold.

Be strong and look your business straight in the eyes. See it for what it is.

Then think carefully about your next step. Set that plan and put it into action.

Let me know if you need a hand, or want someone to hold you accountable to the plan you have set.

Peter