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If Franchising Is Your Backup Plan, Please Go With Your Other Plan! Get A Job!
Posted on August 22nd, 2009 10 comments
I’m afraid the remnants of the recession and sustained unemployment will lead people down a path similar to the one this subscriber told me that he may take. Without revealing his name, he wrote:“I am between careers. I was laid off in January from a 27 year engineering career. I’m trying to juggle two possibilities at one time . . .” (1) interviewing for jobs “when they do come up” and (2) looking at franchise opportunities.
Franchising as the backup plan
“I am continuing to research franchises as, frankly, a backup plan. . . I’d definitely like to get your opinion . . . .” He went on to say that he’d like my opinion once he “identifies that franchising is the right path” for him and when he’s ready to look at specific opportunities.
He concluded, “I’m currently working with a local office of (a franchise brokerage).”
My take on this
The saving grace is that the subscriber acknowledged that he has to determine that franchising is the right path for him. I trust he’ll do that before he invests in a franchise.
But if he doesn’t find a job in another 90 days, or more, it may be easy for him to make the decision to go with his “backup plan.” Suddenly, he’ll decide (perhaps with some outside pressure, i.e. a spouse, a broker, hungry children, friends, etc.) that franchising is for him. Forget that it was once a “backup plan” — it’s now the plan because, seemingly, there’s no other option.
It’s probably a mistake
And I think that will be a mistake.
If your “backup plan” is franchising, that’s probably not going to work. If it’s not your passion to own a business, it’s not going to work. It’s too difficult to own a business. There are so many decisions, challenges, transitions, pitfalls — if it’s not your passion to tackle these issues head on, don’t do it.
Bottom line: Franchising never makes a good “backup plan.”
Franchise misfits
Unfortunately, we’re likely to see a lot of misfits in franchising as a result of the current economic crisis. People have their backs to the wall financially. When their unemployment runs out and they’ve used up their savings — what are they to do?
Lots of folks who have a vested interest will tell them to “Buy a franchise!”
That spells disaster for them and for franchising. It won’t help franchising when these reluctant buyers, who never really wanted to own a franchise, fail and return to corporate America in a couple of years when jobs are again plentiful. The aftermath of failures and disappointments will further damage franchising’s reputation.
I could be wrong. Hope I’m wrong. But history tends to repeat itself!
Photo image by: cesarastudillo
10 responses to “If Franchising Is Your Backup Plan, Please Go With Your Other Plan! Get A Job!”
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Great point. I would add to bring someone else with you if you get as far as Discovery day. When the backup plan becomes “the plan” you esily may be seeing the franchise through rose-colored glasses. If they tell you it may be a year before you’re profitable- hear them instead of thinking, I’ll do it quicker.
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A very interesting analysis, and one that makes perfect sense.
As a potential franchisor, I am very wary of taking on the wrong franchisees, and having read this will be even more wary. It is hard to say no to people who want to have a go, but it is better to say no up front than allow someone to go down the wrong path, even if it means throwing out a couple of good franchisees together with the wrong ones.
Ray
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John,
Fantastic job on this article. So true. You know that I am a franchise broker/consultant. I won’t work with anyone who is looking at something as big as small business/franchise ownership as a Plan B.Good stuff.
The Franchise king
Joel Libava -
I agree, John. Most tenderfoot entrepreneurs — including some veteran business players — tend to look at franchising as the second, “this-will-get-us-of-trouble-so-let-us-franchise” option.
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Thank you for this article, John. Very timely. As a franchise consultant, I too find that there are a lot of people out there kicking the tires trying to find the right fit but tied to what they know…a job. What I’m finding is that getting into a franchise requires passion, confidence and belief in ones self — perhaps even a dissatisfaction with the insecurity of jobs and going the route of the masses. I’ve seen greater success with individuals who have been there…done that and are looking to get off of the beaten path and pave their own destiny.
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Great insight and true for potential franchisors, too. Franchising is not a back-up plan for business woes. It takes commitment and focus. The best is when a dedicated franchisor meets the committed franchise candidate. Whatever you do in life – commit to it.
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This is an awesome article, to describe that investing in a franchise is not a quick fix and nor is it the silver bullet to end all your troubles in a flash. Even if they go with “plan B” their mindset is off focus, if it isn’t what he truly wants.
Great Job
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Hmmm…
I agree that there must be passion and focus to have success. However, I humbly disagree with the assertion that anyone who thinks they might prefer the security of a job will fail in a franchise.
Is it possible that some are not familiar enough with franchising options and systems available?
Could the person in your scenario have gotten information from someone who has had a bad franchising or self-employment experience (lack of support, too much control, insufficient ROI, etc)?
Is it possible that an executive has spent so many years in a great job they’ve just been downsized from that another such job seems the best choice, even though they are very passionate about their industry and have the qualifications and traits for success?
Every franchise and every potential franchisee are different and should be considered on their own merits.
Though there are likely more who were unsure they should start a business and subsequently failed at it, there are still those who were unsure, but with guidance ended up wildly successful.
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Joel Layman December 1st, 2009 at 21:05
Franchising was certainly not a “backup” plan for me. After working my way through college and then on toward my MBA, I often locked horns with those above me in whatever business I was working for at the time. If I felt something wasn’t being done efficiently and/or effectively, I voiced my opinion. I was also often held back by those above me who didn’t want me to be on their level or worse, above them. Hence, I looked into several franchises.
To be a success at being a business/franchise owner, one must certainly possess the “ownership” mentality. This is not a 9 to 5 job folks and you won’t be punching a clock. You often have to work long hours to ensure all objectives are being met and most importantly, that your customers are completely satisified. Although I don’t have to work exceptionally long hours often, sometimes I do, but I knew that before I got into the business that I’m in (Jan-Pro Cleaning Systems), and I don’t mind it one bit because my customers love me and I treat them as my friends-not JUST a customer.
Also, when looking for a franchise, one might consider buying into something they have experience in. While I had general management experience, I also had practical cleaning experience (including strip and wax, and carpet cleaning) that I acquired from years of Army service-I guess I had an edge when it came to cleanliness. However, if one has the passion and drive enough to be successful at owning a business, the rest will often fall into place provided the company invests in the new franchise owner by providing quality training.
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Great point. I would add to bring someone else with you if you get as far as Discovery day. When the backup plan becomes “the plan” you esily may be seeing the franchise through rose-colored glasses. If they tell you it may be a year before you’re profitable- hear them instead of thinking, I’ll do it quicker.
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