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Unemployable with Jeff Dudan
Why Franchise Ownership Is the Smartest Way to Start a Business with Jeff Dudan
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Hey everybody. Welcome back to another episode of Franchise Friday on the Unemployable Podcast. I'm Jeff Duden and today we're going to talk about why should I start my business ownership journey with a franchise? Well, I'm going to give you four reasons and these are four great reasons why you should consider it. Number one, I don't care what you say, there's a lower startup cost with a franchise. Lower startup cost. And the reasons are obvious. Number one, even though I hate the term, it is a business in a box. You get the entire starter kit. It's like a pinewood derby. Whether it's a service business where you get the vehicles and they're wrapped and you get the equipment, or whether it's a location based business where you get a build out package, real estate support, everything to get you to day one. And at the end of the day, every franchisor will put you in a business looking good and looking sharp with all the things you need on day one. But that's not all. You also walk into an existing operating system and that means manuals, SOPs, specific and detailed instructions on how to operate the business and who does what. And of course, you can't overlook brand tools, websites, marketing, collateral campaigns, customer insights, data offers, incentives. All the things that take business owners years and years to learn are provided to you on day one of your operating business. So think about this. If you were going to recreate the franchise business that you're considering joining, it would take you years of testing and trying and branding and consultants and failures just to get to where you start on day one with a franchise. Which leads to my second point is speed to first dollar. At Homefront brands we say you have to start well to go well. And we take that very seriously. When have you ever started a relationship that didn't start well and it ended? Probably never. Okay, so what does that mean to start well? And for us, that means to do everything as early as possible in the onboarding process before the franchise even opens, to generate revenue, to create brand awareness in a marketplace so that this business is coming to create introductions and promotions to the most important people like referral partners, network partners, doing all of this before day one. And in that way, from the time that somebody comes through training and they go back to their local market to start their business. It's not uncommon, at least at home front brands, for people to already have customers waiting for them to have generated revenue and sometimes they've already provided service. And we found a very interesting way to do that because speed to dollar matters and the faster that you can generate operating revenue in the business, the less cash burn you're going to have as you're entering the market and ramping up through the startup phase. Now, many brands are a good fit for a grand opening, which is also something that you can work towards long before your business is officially open. Create that big splash. Start having conversations with all the important people that are going to have an impact on the success of your business. Get them to come support you on the first day. Big splash not only in the community, but also with the press and the media on social media, which gives your business a jump start and increases the revenue velocity into your business from inception. And that's what speed to first dollar is all about. Number three, access to customers. It's a little different if it's an established or emerging franchise and there are various established franchise brands out there. And if you're fortunate enough to find availability in one, the customers already know who you are, you have name recognition and there will be some customers that are already looking for you before you ever put your shingle up. I think you're very fortunate if you can find an emerging brand because many times emerging brands have identified a new niche or an under organized niche where customers are ready and available and a franchise system has been spun up to take advantage of organizing this disorganized or fragmented marketplace. And you can use this franchise system to jump into that market and get access to those customers who are currently underserved or available to be served by a new, more organized provider like you. And the last thing is that it is the fastest way to get on your personal wealth and personal development journey. I've talked a lot about capabilities. If you've listened to me at all, you've heard it, and especially if you have not been an entrepreneur and you're coming out of corporate America and you have certain capabilities that are going to be critical to the success in your business that you're going to need to leverage and expand and deploy in the business. You have these things, you probably know what they are, but I guarantee you, no matter how successful you've been, there are other capabilities that business owners need that might not be apparent to you from day one, but they're going to be important and also a very important part of building you out as an entrepreneur. Now, some of these capabilities you should probably pursue yourself and try to make those capabilities something that you do. But there's other capabilities you can buy. You just buy those services by hiring team members or outsourcing. But that's really the decision for a business owner that wants to scale. It's about understanding when to build and understanding when to buy and understanding how to put it all together to create an incredible business that will scale ultimately one day without you. And you're also building equity because in a franchise model, you own the business and you have the ability to constantly work backwards from an outcome that you've decided for you. What does this business do in your life for you, your family and the people that you care about, and what is the role that the business is going to play? And if you build it really well and very efficient, you will be able to unleash the equity value in that business by selling the business and deploying it somewhere else in your life using the capabilities that you've learned operating the business. These two things go hand in hand. And finally, you're building cash flow. When you're starting a business, whether a franchise or independent, it feels like all the money is going the wrong way right out the door and growing business. And the faster that it grows, it's like a growing teenager, it the faster it's going to eat and it needs to be fed constantly. But your goal is to make a profit and generate cash and to build a model where this consistently and predictably happens. And that is the game. Some would say that's the great game of business. So if you're looking to jump into the game and you're not sure how to start, there's a real reason that there's 829,000 franchise establishments out there and that one out of every eight people in this country works or is employed by a franchise and that the lower middle market creates 90% of new jobs. That's because it's a real marketplace. It's where families build wealth. On Main street usa. And if you're really good and you work long enough and you work hard enough, everything that you want in life can be accessed by taking this one step. Well, that's about it for today with Franchise Friday. I'm Jeff Duden. I'm honored to serve you. And if you're interested in learning more about what we do at home front branch, just head on over to homefrontbrands.com check us out our amazing brands with our incredible franchise owners. And if you want to learn more from me, I suggest you go to the link below and download a free copy of my book Discernment the Business Athlete's Regimen for a Great Life Through Better Decisions. Because if you're listening to this, you're probably at an inflection point in your life, or you're bored, or you clicked on something by mistake. And this book will help you understand how to filter this decision that you're looking at and make the best decision that's right for you and those you care about. Thanks again for listening to Franchise Friday on the Unemployable podcast. I'm Jeff Duden. Go do something great.