should you franchise or get investors
this is a common question I get asked by
entrepreneurs who are trying to expand
right you you’ve you built your business
up to a certain degree and now you want
to expand it and you need help and you
don’t have the capital to do it so
you’re looking at either franchising it
out and that’s where you own all your
business but you are selling the rights
and the training and the system to other
people or you bring on investors to help
you grow this business up I’m going to
answer this question with contacts from
one of my face book readers love you
guys John who wrote in John has been a
notch work for 25 years John’s based in
New Jersey is 52 years old he’s got a
pizzeria he says he’s got this new idea
to expand his pizzeria and two new
niches that nobody else has done before
and he wants to go big he wants to take
a nationwide he doesn’t have the capital
to do it he hasn’t launched it yet
because he doesn’t want people to steal
his ideas because there’s only one man
show and he doesn’t know which way to go
he’s talking to investors but it’s not
sure if you should do investors or if
you should go with the franchising room
so let me answer this with that context
okay John first of all to franchise you
have to have something that works people
buy into a system so I don’t know how
while your pizza we is doing right now
but you are basically selling this
concept there’s new concept for it to
work you have to show that your system
works you’ve got to launch it in your
store and show that it has proven
results because you won’t have to be the
best or people going to come to you for
training if you haven’t launched it yet
you don’t know how it works you don’t
know what the numbers are people can’t
buy into that right you have projections
but that doesn’t mean anything the best
and most successful franchises are the
ones who have a with high degree of
certainty here’s how much money you’re
going to make in this location
franchising is typically the faster way
to grow you want to take this big you
want to take this nationwide franchising
lets you get there because people are
paying you for the rights to open up
locations you want complete control of
business but you have all these kind of
independent people who are around the
country running this it’s fast because
they’re paying into it if you go own or
operate and you get investors involved
you have more say because you actually
own each store but you have the
challenge of bringing on partners who
you not have to work with instead of you
owning everything and you have the
challenge of slower growth because you
have to open one store at a time now
both methods can work if you look at two
of the biggest systems in the world
you’ve got starbucks and mcdonald’s
we’re starbucks everything is run by the
store you can’t buy starbucks franchise
and mcdonald’s is the opposite they’re
all franchise if they have their
training university you learn about
making hamburgers and running a
restaurant but it’s all franchisees so
it comes down to one what kind of
business do you want to run because i’ve
had a lot of successful entrepreneur
friends of mine who have gone the
franchising route and your business now
becomes working with franchisees and
training them instead of working with
the customer so most of your time is
spent talking to your franchisees and
recruiting them and training them and a
lot of the entrence have gone down that
road they don’t like it they want to be
customer facing so there’s not the kind
of business that you want to run or not
okay second how fast you want to grow
because if you want to get this going
quicker franchise and we’ll get you
there faster because you don’t need as
much of your own capital from investors
and from yourself people will supply the
capital you have to show you have a
working model people will supply the
capital the third one is do you want to
work with investors or not do you want
to have partners on board you know you
don’t know I don’t know how much you’re
asking for I don’t know much they’re
going to take as a percentage of your
business but you know can you work with
a business partner do you want that or
not so both models can work hopefully
help give you a little bit of clarity it
comes down to
kind of business do you want to run and
how it you want to grow that will help
decide which model to take good luck and
believe and keep me posted with your
progress for those you watching like the
video please give it a thumbs up below
leave a comment I’ll make a video
response subscribe to the channel if you
like what you’ve seen and I’ll see you
soon
this is a common question I get asked by
entrepreneurs who are trying to expand
right you you’ve you built your business
up to a certain degree and now you want
to expand it and you need help and you
don’t have the capital to do it so
you’re looking at either franchising it
out and that’s where you own all your
business but you are selling the rights
and the training and the system to other
people or you bring on investors to help
you grow this business up I’m going to
answer this question with contacts from
one of my face book readers love you
guys John who wrote in John has been a
notch work for 25 years John’s based in
New Jersey is 52 years old he’s got a
pizzeria he says he’s got this new idea
to expand his pizzeria and two new
niches that nobody else has done before
and he wants to go big he wants to take
a nationwide he doesn’t have the capital
to do it he hasn’t launched it yet
because he doesn’t want people to steal
his ideas because there’s only one man
show and he doesn’t know which way to go
he’s talking to investors but it’s not
sure if you should do investors or if
you should go with the franchising room
so let me answer this with that context
okay John first of all to franchise you
have to have something that works people
buy into a system so I don’t know how
while your pizza we is doing right now
but you are basically selling this
concept there’s new concept for it to
work you have to show that your system
works you’ve got to launch it in your
store and show that it has proven
results because you won’t have to be the
best or people going to come to you for
training if you haven’t launched it yet
you don’t know how it works you don’t
know what the numbers are people can’t
buy into that right you have projections
but that doesn’t mean anything the best
and most successful franchises are the
ones who have a with high degree of
certainty here’s how much money you’re
going to make in this location
franchising is typically the faster way
to grow you want to take this big you
want to take this nationwide franchising
lets you get there because people are
paying you for the rights to open up
locations you want complete control of
business but you have all these kind of
independent people who are around the
country running this it’s fast because
they’re paying into it if you go own or
operate and you get investors involved
you have more say because you actually
own each store but you have the
challenge of bringing on partners who
you not have to work with instead of you
owning everything and you have the
challenge of slower growth because you
have to open one store at a time now
both methods can work if you look at two
of the biggest systems in the world
you’ve got starbucks and mcdonald’s
we’re starbucks everything is run by the
store you can’t buy starbucks franchise
and mcdonald’s is the opposite they’re
all franchise if they have their
training university you learn about
making hamburgers and running a
restaurant but it’s all franchisees so
it comes down to one what kind of
business do you want to run because i’ve
had a lot of successful entrepreneur
friends of mine who have gone the
franchising route and your business now
becomes working with franchisees and
training them instead of working with
the customer so most of your time is
spent talking to your franchisees and
recruiting them and training them and a
lot of the entrence have gone down that
road they don’t like it they want to be
customer facing so there’s not the kind
of business that you want to run or not
okay second how fast you want to grow
because if you want to get this going
quicker franchise and we’ll get you
there faster because you don’t need as
much of your own capital from investors
and from yourself people will supply the
capital you have to show you have a
working model people will supply the
capital the third one is do you want to
work with investors or not do you want
to have partners on board you know you
don’t know I don’t know how much you’re
asking for I don’t know much they’re
going to take as a percentage of your
business but you know can you work with
a business partner do you want that or
not so both models can work hopefully
help give you a little bit of clarity it
comes down to
kind of business do you want to run and
how it you want to grow that will help
decide which model to take good luck and
believe and keep me posted with your
progress for those you watching like the
video please give it a thumbs up below
leave a comment I’ll make a video
response subscribe to the channel if you
like what you’ve seen and I’ll see you
soon
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