Nigel Mayne`s Start Up Plan for the Successful Small Business Franchisee

In the last 30 years, the franchise has grown into one of the most recognized and reputable business models on a worldwide basis.  According to the International Franchise Association, there are over 767,000 franchises in the U.S. alone, providing nearly 10 million jobs and contributing $624.6 billion in business annually. In the UK, the franchise industry is growing at twice the rate of the entire economy according to a NatWest/British Franchise Association study released in 2009.

While business ownership has traditionally been just a dream for many, franchising has opened the door for ordinary people to build their own small business and reap the rewards.  But how does that ordinary individual cope with the challenges of a business start up?  Shopping for the right franchise is in itself a steep learning curve for many new franchisees. One way to facilitate the process is by  searching out the guidance of experts on the process of qualifying as a potential franchisee and in taking the first steps as a new business owner.

Here are some suggestions on actions you should have underway when signing up for your new franchise.

• Turn your business plan, the same plan you used to obtain the financing that qualified you as a franchise buyer, into a detailed blueprint for your first two to three years in business.  
• Ask the franchisor for any checklists they have for new franchisees, along with their estimated timeframes. Year one should have high-level detail plotted out with Years two and three being more big picture.  
• Milestones to mark out include:

o    Final negotiation of the contracts for the desired location, equipment and fittings. If this is your first lease negotiation, spend quality time understanding all your rights, obligations and additional start up costs, and review them with your legal advisor. 

o    Overlay all your task related activities with the timetable of the training requirements of the franchisor.  This will help you set the first major milestone of opening day. 

o Working backwards from this major event, you will be able to determine the desired lease date and the date by which you should have your key staff on board.

.

By now you will have easily identified a number of the steps that need to be taken concurrently.

•          Turn to your franchisor for any assistance in marketing and promotional activities to make your opening day a grand success and keep your new customers coming back for more. This key event is worthy of a detailed plan of its own.
•        Now budget for each milestone in rough terms, so that you have the bones of cash flow control that you can flesh out as you learn more during the franchisor training sessions.
•       Allow a slippage factor in all milestone dates and budgets.
•        Your detailed business plan should be updated or adjusted two or three times a year or immediately should circumstances change.

 If at any stage you feel a little overwhelmed by processes that are new to you or perhaps not your greatest strengths, remember that just as you don`t skimp on the prime location nor should you skimp on having the right people in the right places in your new business venture. Recognise your business weaknesses and compensate for them in the quality of your business relationships and key staff. Whether it is the actual hiring of staff, setting up your back-room operations or dealing with the detail of cash flow management, you must meet these challenges with the same energy, leadership and enthusiasm you have for the franchise itself.

The risks of failure in the small business franchise are the same as those in any new and legitimate business model and range from issues relating to the personality and strengths and weaknesses of the business owner to intellectual property matters, general contract disputes and failure to attend adequately to fiscal responsibilities, as well as misrepresentation and commercial fraud by third parties.  A solid plan for start-up and year one goes a long way to laying out the areas where the new franchisee needs to call on expert guidance.

MatchPoint Franchise Consulting Network was founded in 2006 with the mission of building the world’s most successful international network of franchise consultants representing the industry’s premier franchise brands.  We achieve this through delivering value as a trusted partner to the best franchise brands, and offering high-value services to our prospective franchisee clients.

The advice offered freely to franchise buyers by MatchPoint consultants is vital to the buyer in making a better, more prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help the investor with a high quality due diligence process.  It is an effective hedge against misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.   

Nigel Mayne on the Franchisee of the Future

In recent trips to Europe, the Middle East, Asia and Mexico during 2010 as part of our international initiative to expand our consulting services into these “future-growth” markets, we confirmed the growing acceptance of the franchise model in many countries as an exciting opportunity for small business investors.  Yes, there is perceived risk, but it is a well controlled risk.

There are several European countries,  such as Spain, France, Belgium and Italy, with strong franchise disclosure laws, as well as several in the expected high-growth international markets with a mix of franchise laws and ”good faith”  laws to enforce fair dealing , including in the pre-contractual due diligence and negotiating period. 

The areas of concern for you, the intended franchisee, over and above those of any proposed business investment, may range from issues relating to the termination of the franchise to intellectual property matters, general contract disputes, misrepresentation and fraud.  The franchise documents themselves can be intimidating in size, as the franchisor would not want to be penalized for perceived inaccuracies resulting from abbreviation.

Currently, there are over 3,500 franchising opportunities in the U.S., an estimated 1,000 each in  the UK, Mexican and Brazilian markets, and twice that in the Euro Zone – that`s an enormous pool of opportunities for you to sift through to narrow down leads.

This may be the one of the largest financial investments of your life.  Which is why it makes good sense to call on the expertise of a franchise consultant or franchise broker, who’s services are paid for by the franchisor, to help weed out the more problematic leads and match you and your goals with the best fit franchise.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  That mission also included improving the quality of new Franchisees coming into the system.  Advice is offered freely to franchise buyers on our website and by MatchPoint consultants in the field and is vital to you in making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers in all business models. 

MatchPoint consultants trained by Nigel Mayne know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.  

That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your due diligence process. 

Nigel Mayne’s Tips on How To Buy Your Franchise

It’s never a bad time to launch your own business. Let’s face it, a start-up venture in a booming economy will always be the better choice, but the smart selection of a franchise opportunity can mean success in good or tough times.

 The franchise business model comes with a level of transparency that increases your chance of success when compared with other small business opportunities or multi level marketing schemes, which are often fraught with potential misrepresentations and fraud.

Whether you’re targeting strong international or local franchise brands, your initial research should be as broad as possible, leaving the narrowing down to the industry and location for your business for later and here`s a few tips why.

Simply choosing a well-known brand franchise may not automatically lead to success if it is not the right franchise for you.  Effective franchisors promote their franchises to qualified investors in a number of ways - trade shows, franchise shows, trade missions, the internet, targeted public relations, print advertising and through the use of franchise consultants or brokers.  The draw back to the do-it-yourself approach to narrowing down your best fit is the amount of time you'll need.  The right franchise needs the right location. Location is still key when establishing a small business.  Don’t skimp on the prime location because even the most viable franchise may still fail if it is off the path of the buying public.  .

A good concept in a saturated market is no longer a good concept. Even if you are in a country where the franchise business model is still a novelty and the number of franchises as a percentage of other small business is in a strong growth stage, the level of competition must still be researched.  Look into the proximity and strength of competing business in the territory outside of the franchise.  If the market is already saturated with like business, then consider locating to another area or to  a franchise in another industry entirely.

Make sure your customers know you exist. Don`t assume that the brand recognition coming with the franchise is enough.  Even though your franchisor may offer you the chance to buy into a marketing campaign there is always a need to allocate funds to promote locally.

The most effective approach for you to find the  best fit franchise involves the use of brokers specializing in franchise matchmaking in your region.  Brokers’ fees and commissions are paid by the franchisor, who relies upon the consultant to bring forward the qualified or serious franchisee buyer with financing ability.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  Its mission included improving the quality of new Franchisees coming into a system.  Advice is offered freely to franchise buyers by MatchPoint consultants and is vital to youin making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you, with a high quality due diligence process.  It is an effective hedge against misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.

  

MatchPoint consultants trained by Nigel Mayne know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.   That`s where seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your due diligence process. 

Nigel Mayne and the small business franchise in 2011

We’re now well into January 2011 and those New Year resolutions likely are forgotten dreams.  Except for that one significant promise, to become master of your own destiny and invest in your own business. 

If owning your own business is one of your goals this year, there are some trends in your favour.  Slow to moderate overall economic growth in many countries hard hit by the recession is forecast to continue through 2011.  In the US, the small business sector remained in recession in 2010, lagging in recovery, but is predicted to see stronger demand and better business conditions this coming year.

 

Key trends seen as driving the growth of small business through 2011 are

·        small manufacturing businesses in niche markets  aided by technology  making barriers to entry lower,

·         the weak dollar aiding US manufacturing cost competitiveness,

·       the internet becoming more widely known to small business as a low cost way of sourcing and selling goods and services,

·         small business growing more familiar with and making greater use of social media in their local marketing efforts -think Groupon Inc and its highly successful coupon business supporting local deals!

When time is not on your side, the resilient and proven franchise business model allows you a faster way to generating positive cash flow.  As the old adage goes, it’s your own business, you just don`t have to go it alone.  Strong viable franchise opportunities are there for the qualified buyer, so how to join that select group?

 

Access to financing from traditional sources is expected to remain tight in the US throughout 2011, in spite of the Government’s continuing efforts to support small business through tough times.  We recommend that potential franchise buyers be cautious when selecting companies to do their 401(k) rollovers or when selecting a financing company – with all of the fraud that has occurred in the banking sector over the last several years, finding a reputable company to provide you financing is more important than ever and a 

winning point in your favor with franchisors.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  Its mission included improving the quality of new Franchisees coming into a system.

Advice is offered freely to franchise buyers by MatchPoint consultants and is vital to you in making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you, with a high quality due diligence process.  It is an effective hedge against misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers. 

 

MatchPoint consultants trained by Nigel Mayne know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.   That`s why seeking the independent advice of an expert franchising consultant at the start of your due diligence process is both wise and invaluable.

Assessing Franchise Opportunities – Advice at the Outset from Nigel Mayne

Taking on a small business franchise as the recession eases may be less of a risk than you think.  It is certainly easier in a recession to find the better performers and the strong brands, as well as a product or service with a demand that is still growing and will outlast your long term exit strategy.

The franchise business model can get you established and profitable in a shorter time than other small business ownership options and industry experience is not a requirement. Other benefits of the franchise business model are that the franchisee has the proven marketing and support systems of the franchisor and the contractual process allows for a level of transparency that minimizes the risk of business failure for many of the same reasons that other small business ventures may fail.

There are many traps for the unwary new investor—insufficient startup capital, a lack of general business acumen, not understanding the level of commitment required and its effect on family life, and a failure to be alert to promoters practicing various forms of commercial fraud.

Is a franchise business opportunity right for you?  If you can share the passion for the brand with the franchisor, understand the need to build a team following the proven system and procedures and focus on building sales in your territory, then success is likely to be mutual.  An honest self evaluation of your potential business skills should come hand in hand with your evaluation of franchise leads.  Most franchise companies now have systems to assess the potential, qualified franchisee.  They are looking for the best fit just as you are. The franchisor wants to ensure that you are financially sound and highly motivated, with both leadership and management skills. Also, your background, work ethic and personality are all attributes important to the franchisor.  This initial period of mutual assessment is vital to both parties.   

MatchPoint Franchise Consulting Network was founded in 2006 with a mission of helping companies expand their franchise networks and improve their systems.  The advice offered freely to franchise buyers by MatchPoint consultants is vital to the buyer in making a better, more prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help the investor with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.  

MatchPoint consultants trained by Nigel Mayne know the red flags of fraud in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an investor and their family. 

 

That`s where seeking the independent advice of an expert franchising consultant is prudent and invaluable. 

The Franchise In Singapore – Nigel Mayne Signs Up

Late last year, shortly before a promising business trip to Mexico City, MatchPoint signed a joint venture agreement in Singapore.  Even as economic conditions remain at very low ebb in many parts of the world, the interest in franchising outside of North America remains high and  the number of investors interested in becoming a franchisee is rapidly growing.  In part this reflects the recognition by political and business leaders of the contribution small business makes to economies, as well as the huge comparative contribution made by the small franchise business model.

Mr S Iswaran Sr Minster of State Singapore with Nigel

LtoR Nigel Mayne, David Sevingy Canadian High Commisioner, Richard Hoon

Richard Hoon (L) with Nigel at the Singapore Cricket Club Reception

Earlier in 2010, I enjoyed an extremely welcoming reception from the Senior Minister of State and the Canadian High Commissioner of Singapore.  Singapore is home to over 400 international brand franchises.   The Government of Singapore actively supports local brand development.  With its high standard of living, strong infrastructure and location as a regional distribution center, Singapore is often viewed as a test center for any new and innovative franchise.  We signed up with Richard Hoon, one of Singapore`s top business leaders and the owner of one of Asia`s most successful executive recruiting firms.
  

With the experience of the successful establishment of our UK and Ireland MatchPoint Franchise Consulting Network, we know our business model works in the international environment.  We have opened the New Year 2011 with the recruiting of our first Mexico-based consultant and more appointments are in the pipeline.  We expect to double our existing team of consultants by the close of 2011.

I founded MatchPoint Franchise Consulting Network  in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  That mission included improving the quality of new Franchisees coming into the system.

Advice is offered freely to franchise buyers by MatchPoint consultants and can be vital to you in making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.
  

MatchPoint consultants trained by Nigel Mayne know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.
  

That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your due diligence process. 

Nigel Mayne –2011 and Your Franchise Success

Are you overwhelmed with franchise leads that really motivate you?

Why not start by looking into the industries that  feature in the top tier for 2011.  Essential services like health care, child care, and senior care are our top picks  this year for the new small business investor.  Discretionary spending services, such as education and pet services, continue to grow within the franchise sector.  Going Green has its niche and food and beverage retail franchises tend to succeed where there is perceived real value for money by the local consumer.

Outside North America, we note that  Spa treatments are amongst the local brands enjoying huge success in Brazil aided by smart use of social media marketing.  Everywhere else the well-known, strong international brands continue to grow the franchise business model`s recognition.

These are amongst the range of franchise categories that we see as both affordable and likely to match with an entrepreneurial, highly motivated spirit to ensure a successful start up in this coming year, and to enjoy continued success throughout the five years of the usual franchise agreement.

Expect small business loans and micro credit to remain tight through 2011 in markets emerging from recession, regardless of high profile announcements of stronger government support.   To be qualified as a potential franchisee, the new investor will  need to demonstrate their passion and ability to succeed through determination, along with their financial ability to franchisors.  A business plan that you believe in and know all the details of must be included in your package of submissions to the SBA equivalent and bankers.  The fact that franchisors are motivated to work with you to get your loan application approved  is another advantage of your business model choiceChoose a reputable banker to provide your financing. If you are borrowing from family or have an associate to help provide your start-up capital, you need to protect their future as well as yours from business failure, incompetence of third parties, even commercial business fraud. Nevertake the risk of raising capital from less then reputable sources.

Franchisor support has always been a major attraction of this business model.  In some markets, 2011 projections are more conservative than those of the last 2 years.  In these markets, the franchisor will be looking to find the right franchisee from a larger pool of potential buyers.  On the other hand, the experienced franchisors are actively seeking to aid the success of their franchisees by providing enhanced levels of support and service.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  that mission included improving the quality of new Franchisees coming into the system.  Advice is offered freely to franchise buyers onour web site and by MatchPoint consultants in the field and can be vital to you in making a better, more prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you with a high quality due diligence process.

MatchPoint consultants know the red flags of fraud in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family. 


That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your search for leads.

The Franchise In Mexico – Nigel Mayne Places a Stake In The Ground

Late last year, I spent two highly energizing, long planned weeks on a strategic business trip to Mexico City to explore expanding into the region.  The Mexican market has amongst the highest growth potential for 

the franchise business model outside North America.

In each of the last five years, growth in franchising in Mexico has been between 13% and 17% per annum. The Mexican market is also very accepting of both U.S. and Canadian brands, providing a great exporting opportunity.   MatchPoint will work with locally recruited consultants to develop local brands for this market as well. 

With the experience of the successful establishment of our UK and Ireland MatchPoint Franchise Consulting Network, we know our business model works in the international environment. We have opened the New Year 2011 with the recruiting of our first Mexican-based consultant and have two more appointments in the pipeline.  We expect to have two dozen by the close of 2011.

This strategic direction for MatchPoint, taken some time ago, was very much reinforced by a meeting with the former Mexican president Vicente Fox, in early April 2010.  We discussed the significant growth potential of the Mexican franchise market during the Latin American Entrepreneurship Forum at Babson College in Wellesley, Massachusetts.  

That Vicente Fox is a great believer in the franchising model is hardly surprising.  His dramatic and successful career in business and his rise to the top of Coca-Cola de México is well documented.  He expressed his firm belief that franchising will continue to contribute to the future economic growth of Mexico.

Legislation in Mexico has adapted and evolved as franchising, particularly that of local Mexican brands has become more widely known in the last 20 years.  It has also taken into account the protection of franchisees and would-be investors in this attractive and resilient small business model.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  That mission included improving the quality of new Franchisees coming into the system.

Advice is offered freely to franchise buyers by MatchPoint consultants and can be vital to you in making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you, with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.

  

MatchPoint consultants know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.  

That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from 
the start of your due diligence process. 

Franchise Authority Nigel Mayne on the Successful Franchisee

What makes a small business franchise succeed where many other small business ventures fail?

That is a question that we as brokers/consultants are often asked.  The main contributors to a successful franchise are the selection of the right investment opportunity combined with the passion and dedication of an entrepreneurial owner and the ongoing advice and support from the proven, established franchisor.

The importance of the right investment choice can’t be overstated as a contributor to success.  There are many business opportunities competing for the new investor, creating a bewildering volume of options to be sifted through and evaluated in both the established and developing franchise markets.  These options can include risky business opportunities as well as scams and frauds, although those are easy to weed out when viewed with a little skepticism.  Beware the promises of phantom riches, the limited offers and bold guarantees, and the thinly disguised pyramid schemes promoted over the internet, in mailbox drops and through email marketing, anywhere the legitimate opportunities are to be found.

In general, we can divide the many attractive franchises marketed today into two main categories: those in the retail sector and those in service industries.  Retail franchises include everything from large full retail brick and mortar stores to boutiques and ecommerce operations.  Service franchises can be in a specialist niche, can cater to a local community need, can be mobile, located at home or require a shop front.  The franchise comes in a variety of industries and models to provide the right match for any investor. 

The franchise model provides an additional benefit over other small business opportunities in any market. This resilient business model is a major contributor to investor success as it is aided by rules and statutes that lessen areas for dispute between the parties and that could erode the success of the franchise and that act as a hedge against the destructive risks of commercial fraud.

MatchPoint Franchise Consulting Network was founded in 2006 with a mission of helping companies expand their franchise networks and improve their systems.  Advice is offered freely to franchise buyers on the website and by MatchPoint consultants in the field and can be vital to the buyer in making a better, more prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help the investor with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.

MatchPoint consultants know the red flags of fraud in the investment field.   It takes the very few promoters who practice investment fraud to taint the dream of the franchisee and their family.  That`s where the independent advice of an expert franchising consultant is invaluable.