If you’re already employed by “someone else,” the decision to start your own business is a significant one. And, while investing in an existing brand and business model eases the move, it still necessitates a significant leap of faith.
The last thing you need is to be pushed into a franchise decision that isn’t good for you. That’s almost as awful as jumping into marriage and later discovering you made a huge mistake, or buying a house that turns into a money pit!
With thousands of franchise systems to choose from, most entrepreneurs find the process overwhelming and could benefit from some assistance – which is where a professional franchise consultant comes in. The services of a franchise consultant are free since they are compensated by the franchisor you choose.
So, what qualities should a franchise consultant possess? After all, they’re not all created equal, much like investment and academic advisors and realtors.
Choose someone who is more interested in you than themselves.
A professional franchise consultant will want to know everything about you, your background, and what’s essential to you and your spouse at the outset of the interview.
They should inquire about your financial resources as well as your desired level of business experience. The more information the franchise consultant has about you and your objectives, the more chance they have of discovering the ideal fit. Find someone who does if they don’t show enough interest in you.
Tell the consultant about your short- and long-term objectives. This helps the consultant better understand you and which franchisees will best assist you achieve your objectives. After the consultant has learned everything there is to know about you and your goals, they will offer you with the solutions they believe are the best fit for you.
Make sure they get enough information before presenting concepts.
The consultant should be well-versed in the franchises they’re promoting, right down to the business culture. The finest consultants have realised that sometimes you have to go back to the drawing board.
Someone will call in and we will discuss a business. “What business are you considering?” I’ll inquire. They’ll say that they’ve been considering this or that franchise. It’s all about the franchise owner’s day-to-day operations. You want to be able to pick and choose the components of the owner’s day to day life you want when you’re looking at franchises. In my book, Be Your Best Boss – Looking Under the Hood, I discuss this (of the franchise opportunity).
What about the financial situation? Because it is a constraint, it always comes up. It’s pointless to talk about a $200K business if you only have $100K to invest. Recognizing a person’s financial restrictions is just as crucial as understanding their desires. In fact, I discourage people from going “all in” on a business.
Look for someone who you feel a genuine connection with.
It’s preferable to “like” the person who will be helping you through one of the most significant investments of your life. The relationship is built on mutual affinity and trust when you have a true connection with your consultant. Why would you settle for anything less?
Make sure you don’t feel pressured at any point during the process.
When consultants start recommending specific franchises automatically, I think it’s a red flag. A good franchise consultant will not advise you on which franchise to purchase. The role of the consultant is to evaluate and understand your dreams, strengths, and possibilities. They’re not supposed to persuade you to invest in their preferred option.
“I have the ideal franchise for you,” many consultants would offer. Take a look at the other two…” But what they’re really doing is promoting a company in which they have a stake. They must provide you with options so that you can assess and compare them.
Make sure you keep an open mind.
“What kind of business do you want to do?” a good franchise consultant will ask. Service-based enterprises require less capital and yield a lower profit. A consultant might say, “for comparison purposes, let’s look at something like a $250K retail business so we can validate that a service-based business is right for you” or “the ROI or lifestyle you’re looking for would be served by a retail business” even if someone doesn’t want to spend more than $175K. People must be given the opportunity to make those decisions, according to consultants.
A ‘Typical’ Experience with a Franchise Consultant
The first step in working with a franchise consultant is to schedule an introduction call, which is followed by a confidential questionnaire and a consultation. Then there’s a month or two of weekly calls as the entrepreneur works through the instructional themes.
If they’re on schedule to finish the process before the end of the month, the funneling begins. “Do we need to go back to the drawing board?” inquire after removing the ones that don’t function. The entire process normally takes 60 to 90 days, with at least 14 or 15 phone conversations. This is standard — assuming the consultant is truly worth their salt.
Conclusion
Is a franchise the appropriate fit for you? If you’re afraid of taking risks, a franchise can offer a well-worn path where the franchisor has previously eliminated many of the roadblocks and paved the way for new franchisees. Climbing into a well-oiled machine may be both soothing and financially beneficial for a first-time business owner.
You don’t have to look at thousands of franchises on your own as a potential franchisee. My team and I at
We can give professional franchise and finance advice at no cost to you after we understand your aims. Call now to find out how Regional to Global can assist you.
have helped hundreds of entrepreneurs select the right franchise for their lifestyle and budget.
We can give professional franchise and finance advice at no cost to you after we understand your aims. Call now to find out how Regional to Global can assist you.
