Business Coach | Be Ecstatic That You Own Your Own Business
There are necessarily some numbers that are not very flattering when it comes to owning your own business, says business coach. Some these numbers include 14% of franchises go out of business in five years.
Likewise, says business coach, in all businesses, that are opened, 50% of small businesses will dissolve within five years of them opening.
Those are some very daunting numbers however eight can very well be a success story if you work very hard and if you take proper advice from certain very important people within the business community. What that means is not necessarily specific and proper people in the business community but titles, occupations.
Are example, you need a charter professional accountant. You need a charter professional accountant that is experienced in small business, and that will be able to help you.
This is the same as franchisees. What you will have his you will often have franchise owners who will put a lot of pressure on you to buy their franchise. They will often tell you that it is going to be sold in a matter of hours or days because they have a lot of people that have visited the business as well and are looking to make an offer. That could very well be true but not likely. The reason is is that they want to get out of their business. What is probably happening is the fact that that business has been on the market for months, and they just want to get it over with and get it done.
You have to be able to do your own homework so that you are completely and properly informed about the process of owning a franchise, and even before owning a franchise. What that means is there are potential people who will tell you things aren’t necessarily true. That goes as well for the parent company itself as well. What the parent company will say is they’ll show you all of the successful businesses and franchises. They will not give you any documentation on the locations that are failing. It is up to you to do Google searches, to get on the phone, and to visit in person potentially some of the businesses that may not be doing so well. What you need is you need a sense of parity. You need to understand what an average is in terms of that particular business or franchise.
As well, says business coach, make sure that you are starting out with a plan. What this means is this means a proper financial plan with your charter professional accountant. Do not make the foolhardy mistake of signing on the dotted line and buying a franchise without yet having a plan. Again, what they will tell you is they will tell you that you should buy the business, and then they will help you work on a business plan. That is counter productive and very counterintuitive. Make sure that you have a impartial CPA on your side.
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This coach says that usually the franchise owners are going to legitimately supply you with locations that you’re going to want to see. However, those locations are all going to be very successful locations and there is probably going to be heavy traffic within those locations, it will be clean and tidy and fully stocked, and there will be lots of money in the cash register.
What you do have to do is you have to do your own homework and you have to find out if in fact all of the franchises are like that or which ones are failing and why. You can do this on your own. As a matter fact you probably should do this on your own, says business coach. Do not rely on the head office of that particular franchise as they will feed you tall tales and lies in order to sell one of their franchises again.
Bear in mind, says business coach, that this is going to be your life savings potentially that you have on the line, so make sure that you are doing all of your homework. In fact think of potentially pertaining a charter professional accountant immediately after you have decided that you have wanting to charge own business. The CPAs going go through and starts to calculate the recent abilities of the business that you are looking to buy. That charter professional accountant isn’t just going to take the numbers that were given them. They are going to do their own homework and they are going to make sure that those numbers jive properly with the actual numbers that are part of that business. They’re going to apply the royalty against the revenue. Of course what’s going to potentially happen is that they’re going to come up with a completely different number than what was given them by their head office of their franchise. This is considered a royalty expense.
As well, says business coach, they’re going to be other categories that are automatically going to be conveniently forgotten about from the financials of that particular location and the business. Some of those financials could be the month utility bills, the lease agreement, etc. You have to be careful also of the common area charges that they make sense as well. Not every lease agreement is going to be ideal and not every lease agreement is going to be the same. This is true, even if there are two businesses from the same franchise!
It can be a different landlord an indifferent property owner that is going to charge you a different rate of rent with that different particular location. It might not be a stand-alone where as the other ones that you visited are part of a stripmall and need to pay rent, etc. Actually you can kind of think about all of the potential hiring processes that you can do and not have the head office get in your way.