Business Bootcamp | Getting Down To The Real Numbers In Franchises
Business bootcamp says and warns you that what happens if you have spent all this money on a franchise and you have signed on the dotted line ergo you have signed a very big contract, and you have signed a lease or mortgage on that property, and then you get a business plan? That is not necessarily the best plan of attack if you are looking for success.
Business bootcamp will warn you that that is that exactly the tactic that franchises will take with you. They will ask you to give them all of your money in reference to buying the franchise, you will sign a contract, you will have potentially signed the lease or mortgage,… And then you will receive a business plan and working with your franchise and your leader, and your parent company. However, what happens if you don’t like the business plan? What if you don’t in fact like the numbers, and they don’t exactly come out the way that you had anticipated? What happens if in fact you thought that this was a successful business, when you have not seen a positive revenue flow year-over-year for the past little while from that business? Those are all considerations that you’re going to have to take before you have given that franchise all of your money.
This could be rather devastating for you as you have now already committed and they have your life savings potentially, and your signed contract in hand. In order to guard against that, says business Boot Camp, make sure that you are talking to other business owners, particularly from that one franchise. You absolutely may contact franchise owners all by yourself. You can email them, phone them, or better yet, visit them in person. If you visit them in person, you will be able to see their expressions, and you will be able to see this the state of their franchises, and get a real sense of what the business looks like and how it’s doing.
As well, says business bootcamp, if you do this and visit them personally, the business owners are more apt to tell you honest opinions. They do not have any reason to lie to you. Where as, if you work from within the franchise parent company, all they want to do is sell you the business, that is legitimately how they get there commission. If they are not selling any franchises, then they are legitimately not making any money.
When you retain a charter professional accountant, and after you have done all of the initial interviews with business owners and what have you then you can get involved with the parent company, with your charter professional accountant alongside you. Your CPA will be able to go through and start to calculate all the recent abilities of success from within that business. Your CPA will not be working solely with the numbers that were given you by that parent company. The charter professional accountant also has ways of getting to the bottom of a lot of honest numbers.
Where Can You Go To Find The Business Bootcamp?
Business bootcamp has a lot of great ideas for you if you do want to get involved with a franchise. You may decide to visit different franchises yourself, as you may be able to get a more honest opinion of what is going on with the franchise.
As well, states business bootcamp, you have to be very careful with seeing all of the legitimate documents that you are going to need before you make a educated decision on whether you should buy a franchise or not. What this means is, generally in franchise disclosure documents, you’re going to get what is called plain paper documents. There is no involvement from an external accountant in this case. These are simply the documents and the financials that have been internally prepared. They may or may not be biased. Often times it’s incomplete information, and they will change that information subject to year end. It’s just like there’s always adjustments at the year-end for yourself personally, it will be the same thing as that particular business. So they are not quite that necessarily reliable.
It is good idea to try and request what is also called external accountant prepared financials. You need these from each and every location that you have visited whether you are interested in that particular location or not. Make sure that they are locations that get a good average of what is happening with the parent company. What that means is as well as visiting the successful franchises, potentially CF you can find franchises that are may be not doing so well or are at least on the average. You can start to get a little more clarity that we as to whether this is going to be a good business decision for you or not. Often we have entire categories of expenses that are excluded in plain paper documents, so again, that is why you bring your charter professional accountant with you.
Plain paper means internally prepared documents, explains business bootcamp. There is no external an accountant who signed there named to that document in a notice to reader engagement report. Because of this, it is indeed a very good idea to ask for the external accountant prepared financials because they are generally more comprehensive and more complete than as is the internally prepared ones.
What happens is if you have the choice and you do not want to start a business from the ground up, franchises are a great idea as they are usually turnkey businesses. You can walk right into the business knowing that all of the supplies are there, you don’t have to build the building, and you have people and advisors that are going to back you up from the parent company. After you buy the business, your previous employer from that business will potentially stick around in order to help you out and learn the business.