CFO services |Wading Through The Muddy Waters Of Franchising
CFO services says be cautious, careful, and potentially sceptical when you are dealing with potentially buying a franchise.
40% of franchises go out of business in five years. That is not necessarily a bad percentage, however 14% is still 14%. And it can still lead you to failure and financial ruin. Going out of business is catastrophic for anybody. There go the dreams of your financial and your time freedom with your family.
Often times what happens in charter professional accountants offices is that they will have people come into their office and say that is the singular only business that I want to buy and spend all my money on.
However, says CFO services, what they haven’t done is they haven’t done any shopping. They haven’t taken look at any other business, with any other industry, and in any other occupation type. They have no idea the financials are and they don’t necessarily know what they are getting themselves into, although they think they do. They haven’t spent time looking into any other options at all.
You can liken the situation to potentially buying a house for you and your family. Do you legitimately look at one house and then go into a 35 year amortization not even considering other potential options may be better out there for you? That would be a very foolhardy decision, and is the same foolhardy decision as buying the first franchise that you see.
Likewise, declares CFO services, it would be a very foolhardy decision to necessarily trust these franchise representatives. Remember it is their sole task, full-time, all week, to sell sell sell franchises. That is the only thing they do. If they don’t sell franchises they don’t make any commission. So it is in their best interest to sell as many as they possibly can in whatever way they can.
A good idea would be to go out on your own and not necessarily heed the advice of the franchise owners, or the head office. Do your own homework and potentially contact three different franchises from within the same company. What you can do to his do a simple Google search and find out potentially which one is successful and which ones are not exactly doing very well. That might be a difficult search, but with a little bit help you probably will be able to do it.
A good idea would be to phone them. Yes, however go and personally visit them would be better as you will be able to see their reactions, their expressions, etc. If they are not yet available to talk with you and to sit down with you, make sure that you are making a appointment to have a heart-to-heart and face-to-face conversation with them to see that you are getting yourself into a good financial idea. Generally, what they will be is they will be very honest if you are in front of them face-to-face.
These people who are actually on the front lines will be able to give you a good idea of what you are about to get into if you in fact by a franchise.
Are You Looking Forward To The CFO services?
CFO services states that the whole value of a franchise is in the fact that you don’t have to do anything. All you have to do is sign the papers, walk-in, and everything will be there for you nice and tidy.
This is considered potentially a turnkey business and you may not even be able to or need to hire any employees as they will already be in place and will have already been potentially trained.
A lot of people like the turnkey idea or at least at first a lot of people think they like it. Many of them however, wants to start from scratch. It gives you more flexibility, however it’s going to be far more time-consuming. Why burden yourself with the franchise costs and royalty fees if you are necessarily going to consider using it?
CFO services says that as a matter fact it is legitimately the same thing as if you don’t want necessarily to use it, as it’s just so incomplete, so sometimes the training documents and the processes are good enough for you in fact to execute the process. You’re going to have to make stuff up in this regard because you don’t have processes yet from the business owner, or the big conglomerate company. You’re not going to know any the processes yet, and the hiring processes, or restocking shelves, etc. That will come with your training as well.
Be careful because you are going to potentially see different numbers from the big conglomerate company or your business owner than will an impartial chartered professional accountant. It is a good idea to retain a charter professional accountant right from the start and before you even get involved with a specific company the reason for that is the can form a bond with you and find out exactly what you are looking for, and they will have your best interests at heart.
On the other hand, however, what the big conglomerates and your business owner will not have is will not have your best interests at heart, they will be working for themselves and themselves only. If you don’t buy a franchise, they don’t make any money. It works on a commission basis for the salespeople.
What your charter professional accountant is going to do is to go through the numbers with which your business owner gives you, and you’re going to be comparing those to the other files that you have on that company. Your charter professional accountant, if he has experience with a lot of different companies will potentially be able to know how to get those. The questions that you might ask, along with your charter professional accountant, says CFO services, is is this reasonable based on what their files say? Where most business are looking at it from the experience of just one or two businesses. Your charter professional accountant will be looking at it from hundreds.