CFO services | Enjoying Options That You Have With Franchising.
CFO services gives a cautionary tale that the number one thing that they see in their charter professional accountant offices is a prospective franchisee will walk into their office and say this is the one that they want this is the only business they want and they don’t want any other business. However, what they haven’t done is they haven’t done their homework. They haven’t spent any time looking into any other options, and the other occupations, or any other types of businesses.
It’s legitimately kind of like a person wanting to buy a house. CFO services likens this to looking at and buying the very first house that they see when they need to find a place to live. They are not taking into consideration the fact that there are several other options and considerations out there. Often times two there are usually better options out there.
The recommendation is that you look at three different considerations in any choice when you are deciding to get into franchising. Consider retaining a short list of businesses that you feel would interest you and that would peak your interest in wanting to learn more, however not necessarily buying them yet. Yes the buying will ultimately come, but you have to do your due diligence first.
In doing due diligence, the consideration might be to phone up three franchises from each of the three that you have on your list. Consider different locations for these three different franchises, and if you can, find out there financial status, in terms of whether it is a successful business and why, and if it is not a successful business, and why.
CFO services says that yes it is absolutely okay to be phoning them, however it might be a better idea to knock on their proverbial door. What you can do is if they are busy, make sure that you are booking an in person interview for another time so that you will be able to sit down with them and intentionally talk about not necessarily the numbers, but their experiences with working with that franchise.
You need to find an average of good, average, and unsuccessful businesses from within the franchise. That way you will be able to get a very clear picture of what is happening and you’ll know exactly what you’re getting yourself into.
Also to you have to consider the fact that may be starting your own business from the ground up may be the one an idea for you. When you speak about franchises, the whole value of the franchise is that they have figured everything out for you. There systems are all in place, you might even already have employees. You can just walk right in to your franchise, turn the key, and start selling. Everything is done for you. A lot of people like that or at least a lot of people think they like that.
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CFO services says be very careful because 100% yes they do get paid to sell the most franchises.
What we are talking about is we are talking about representatives from that conglomerate, or that mother company, who owns all the franchises. Head office will want to do nothing but sell sell sell. That is in fact their job. Their job is not to have your best interests at heart. Their job is to have their best interests at heart and the mother company’s best interests at heart. These people do not make money if you do not succeed and by the franchise. Likewise, they don’t make any money if you succeed in that franchise. Usually the person selling the franchise will only get money if you are selling the franchise.
CFO services reminds you that these people are not your individual business advisor. They are salespeople. This is why it is very important to retain your very own charter professional accountant, and involve them in every meeting that you potentially have with the mother company and with the franchise. You should proceed at the meetings, and proceed with those people who are representatives from that company accordingly. They are somebody who gets paid a commission only if you by. Their motivations legitimately are nowhere near the same as your motivations and, as mentioned, there best interests are not in your best interest.
Speaking of bringing a charter professional accountant into all of the negotiations, advises CFO services, make sure that you have a charter professional accountant. As well, make sure that the charter professional accountant is in fact impartial, and does have lots of experience with small businesses and franchises. You can include this charter professional accountant in every single meeting the you have, and together you can make a choice.
This is what the big companies, the conglomerates, the franchises tell you, they will actually say to give them the money first, by the business. Then they and their people will work through a business plan with you however, by that time, your decision is already made and you have signed on the dotted line. But what if you ideally don’t like that business plan? What if you don’t like the numbers? What if they come out the way you don’t want them to come out and the business plan is not to liking? Now, you have spent potentially your life savings, you have signed off on the document and potentially a term contract, and you’ve probably signed off on a lease. You are now locked in. You need to make a business plan long before any of this happens as it will mitigate a lot of the problems and potential fit pitfalls that you can get into.
Do not necessarily make any commitments with any franchise owners if you feel as though this is not necessarily right for you. They should not get any of your money until your are 100% convinced and comfortable that that will be the business for you.