Business consultant
Let's take a look at a case that is repeated too often. We will use a fictional character and call him Frank.
Frank runs after 25 years, and he finds himself bored, and money in retirement is not as much as he had hoped. Frank had that over the years believed that his own company, and while looking around on the Internet face a franchise site. Your car garage and make $ $ $. They say anyone can do it, they will be ready to use) all set up (. Frank thinks I have always wanted to know more about cars, and he knows firsthand that his car repair bills are a lot of money. Garages are usually $ 80.00 to $ 120.00 per hour on the so-called flat rate. This is the right thing!
Let us skip a year. France is bankrupt and has collected a large amount of debt. He has been a mortgage on a house that was paid when he retired. It looked so easy, what went wrong? Let's take a look at what happens normally.
Frank, remember when you said: "I've always wanted to know more about cars." This error is # 1! Go into a store that you have little or no experience in. It is important for franchisees rely on a manager and mechanic) as you do and hope that they, or (you can find the right people. Autorepair (a fairly technical area and it always will be) all the time, with expensive equipment and high overhead.
The other problem, Frank (if he is lucky) is gross, an average of 40k per month. Its franchise fees and advertising? Around 6k and salaries, rent, insurance, etc. Frank is now paying cash for a high stress job that. Frank knew the statistics, it may take 3 to 5 years for a company to become profitable. What he had not expected was the amount of money it costs him and "learning" mistakes that cost even more.
The reverse should have done more investigation Frank. All information about the company he was entirely legal, even if only a shadow on the gray side. The information he needed was available if he just saw. This company has a 48% failure rate with the owner, will receive an SBA loan. It does! Remember that most of the people who bought this franchise was not eligible for any loans because they lacked experience in the field. (There is a reason that they do not) loans to people with no experience.
The margin of error was a matter of public interest. Franchising companies had given him a list of people who left (the system). If you're always still be found, many have settled with the company and signed a Non Disclosure Agreement. You can not say anything negative about a franchise business. However, you should meet, how many of these people as you can. The company sells a lot, but have a minimal growth for many years. Just another indicator that something is not quite right.
Looking for my next article on how to protect yourself when choosing a business, franchise or start on your own. If you are in this mess. Above all, know the franchise shops and not what to do. Please contact me and I can help you.
