To find out if you are the ideal candidate to own a Klappenberer & Son franchise or a different franchise altogether, ask yourself these four questions below.
There is no point in investigating a franchise that is outside of your budget.
Much like buying a house, most people get pre-approved with a bank before shopping for their dream home.
The same is true for a business.
By having a budget, you most likely can eliminate 2,000 of the 4,000 franchises.
Do you want a brick-and-mortar store or a home business?
Most brick-and-mortar stores have customers come to the store. On the other hand, a home-based business typically means you go to the customer’s house.
The major downside to a brick-and-mortar store is:
a. Competitor(s) can move next door, taking away customers
b. Lease and upkeep is to the building creates high overhead
c. Unless the franchise delivers, you are relying on customers coming to you.
d. Franchisees need to pay for all decorating and remodeling costs at the discretion of the franchisor. These remodeling projects can easily cost $100,000’s of dollars.
Whether you have decided to have a storefront or a home-based franchise, you have now reduced the possible franchises to about 1,000.
Unfortunately, a lot of people think they will make great franchisees, but they don’t. Why? I don’t know. Maybe, they don’t see the value in their efforts.
An ideal franchise candidate certainly is self-motivated. My ideal franchisee candidate wants to know how to have a successful franchise and follows the system. A perfect franchisee understands the value of the established process and does not try to reinvent the wheel.
Having a staff is the basis for most franchisor models. Consequently, if you have no team, you will be wearing all the hats. As a result, these businesses tend to have limitations on growth and are harder to sell.
In the short term, wearing all the hats in a business is okay. However, in the long run, it will make you feel like a slave to the company.
Here is the $60,000 question.
Finding good help is more than just kissing a bunch of frogs. You have to find the frogs first. In addition, you will have to provide training, inspection, correction, and did I mention their personal problems?
Hiring staff is messy and, for most of us, takes more time than we want to give.
I’m paraphrasing, but I believe Henry Ford said, “I just want their hands, but I get their whole body.”
If you want a scalable franchise, you will need to swallow the employee headache pill. If you do, you will be rewarded by a company that operates without you. The question to ask is, are you up to do this repeatedly.