Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.
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Rather than act as a supplier to franchisees, business-for- mat franchises focus on providing systems, training and support for an operationally sound enterprise. Some busi- ness-format franchises form relationships with vendors in order to secure expanded access to products and preferred pricing for franchisees. Te systems, training, support and vendor relationships are key to helping franchisees generate more sales and higher proft margins. Note of caution: Don't assume all franchise companies are equal because they are not. Do your own personal due diligence of the franchise company you're interested in and verify they measure up to their selling statements. SHOULD I EVEN CONSIDER FRANCHISING? On average, franchises are great at helping small business owners generate strong results. Unfortunately, that success has led to the misconception that owning a franchise is a golden ticket to success and makes franchising easy. Nope! Whether you are on your own or are part of a franchise organization, hard work is required. When I was a teenager, I heard a speech by Bob Richards, an Olympic pole-vaulter. He said there were three parts to his day: pain, agony and torture. Becoming an Olympian, he maintained, required enormous disci- pline and efort. We tell franchisee prospects to be ready because the frst 12 to 18 months in business is similar to the frst 12 to 18 months of having a baby. It can be incredibly joyful as well as incredibly trying. You will be working hard, sometimes frustrated and fghting through challenges. Te diference is the business systems and coaching from your franchisor should help you progress more quickly and get better results from your efort. DO YOU HAVE WHAT IT TAKES TO SUCCEED IN FRANCHISING? Do you have the drive to succeed? Paying royalties to a franchise system is a lot like paying a gym membership to a new top-notch facility, programs, peer competitions and trainers. If you take advantage of everything at your dispos- al, then you should see excellent results. If you don't use the resources, then you'll be wasting money. You'll also need the drive to overcome the inevitable challenges of owning a new business. Franchising can't make those challenges go away. Do you have focus? In order to grow a successful busi- ness you need to stay on top of opportunities and keep an eye on key activities that most predictably generate success. You also must be willing to delegate. Are you coachable? If you are convinced that your way is always the best, then franchising is not for you. Franchise systems use a proven business model to help franchisees get strong results. New franchisees often slow their own success by trying to pick and choose the elements of the franchise business plan that make the most sense to them, while ignoring the rest. But systems are designed to work together. You need to be willing to learn and listen in order to beneft from the system. Do you have enough money? It takes money to start a business, and it's important not to kid yourself about that fact. A lot of businesses fail quickly because the owner did not set aside enough cash to weath- er the start-up phase. Another big business killer is failing to maintain enough working capital to survive slowdowns. Franchise systems will ofer advice about the amount of working capital you should have on hand. Ignore this advice at your peril. Do you have support at home? Starting a new business is not easy. Te last thing you need is fghting your way through obstacles and going home to an unhappy house- hold. Make sure that your family is onboard and under- stands what you are working so hard to accomplish. | Doug Dwyer leads DreamMaker Bath & Kitchen, a remodeling franchise company, as its president and chief stewarding officer, and includes 30 years' experience in franchising. The DreamMaker business model is based on a unique and time-tested Code of Values. Whether you are on your own or are part of a franchise organization, hard work is required. QualifiedRemodeler.com | ForResidentialPros.com QR May 2015 35