Hello everyone,
I have asked this question before i think.( Always new forumites)
Does anyone have a buisness or franchise, and can you please tell me your experience in this sort of investing. How difficult was it to find the right buisness? What hurdleds did you come accross (Unexpected). Did you have a lot og critisism from your family and friends?Thanks
Dom [biggrin]I do. All my friends were supportive and still are. My Parents well they have their own as well and so it is a case of they don’t stress and my Father is always handy for advice. (The man is very strange but brilliant when it comes to businesses and running issues day to day). I also speak with my other associates with businesses and network with them for problem solving solutions as I believe most businesses should. It helps.
finding them is the interesting piece of the puzzle. If you know what you want then it can be simple. Or not. My last two were purchased against the advice of my Accountant and he is still stunned that I have managed to make them viable so quickly. But then I find it is amazing what can be done when everything is on the line and how I just seem to make it happen.
The best advice I can give is this – Know what you want. DO NOT settle for anything less. DO NOT compromise. Otherwise you may find it won’t work for you. Oh and research, research and more research. Like any investment a thorough understanding of what you are getting yourself into is paramount to success!
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi Stuart ,
Thanks for your input much appreciated. I am excited and nervous to enter into a buisness but i cant wait.
But this does all take time to find and set up the right buiness.
You say the last two purchases, do you have more then one buisness?Dom [biggrin]
Congratulations! What industry is it?
The advice I can for somebody why’s looking for franchising – ONLY go to trusted and solid systems.
Basically those are the larger companies that were around (as a franchising) for 5+ years.
And ONLY those that are approved by a bank – bank will lend money for their purchase!!!
You don’t have to lend money – but this approval means that bank sees a well established system, good operations and safe. Banks checks hundreds of businesses and they are pretty good in spotting a trusted business. After all, if bank wouldn’t risk their money on the business – why would you?I really think the franchising, when properly set up is a fantastic thing.
I know at least dozen of happy franchising owners. And with the right company it really works!!!I owned a trade franchising for 18 month but I get out of it last year.
The reason I left – was mainly personal. Imagine the perfect right person…Now imagine the complete opposite…that was my Franchisor!
I was treaded as a slave; I only received a half of my training, and never had ANY ongoing support in any form. I only was given 2 leads at my area (I was promised at least 4 leads per week in my contract), and was pushed work on the chip hourly base on other’s person area. At the same time I witnessed franchisor cheating on other’s leads.But I don’t want to complain too much…
I know from the beginning all the risks and I understood what I’m I doing. I was only 4th franchisor and there’s only two left at the moment. So the company’s collapsing.
I still think it was an extremely good experience for me!!!!
The knowledge I received about building a business is incredible.
I since build my own company and in 12 month achieved a turn over on $350,000.
If I knew what I know now – I would still do the same think – franchising fees were the smartest money I ever invested!!!Cheers,
Hi Lesia,
Congratulations thats a great achievement their.
Thanks for your story its inspirational. At the moment i am looking into all sorts of franchises as i like to compare. My accountant is busy with the crunching of numbers from differnt franchises. Some promise or gaurentee a certain income but you have to examine the contracts fine details to understand what you need to acheive that income. And some are straight upfront with all the figures.But either way the amount of money i am willing to spend on a franchise may triple or quadruple my current income. So this is why i am keen to purchase a franchise.
Dom [biggrin]
Sounds like you getting really well prepared.
Good luck with it.Despite your past experience with franchising (we think it was good, many think it was bad, but the fact it we out of it at the moment) – despite this we still looking for more opportunities in this area.
We are planning to get a second business and will be investigating it in the next few months. But it’s the most likely that our next business will be a franchising. We don’t have to waist our time and money and energy on doing our own mistake. We can simply buy an existing highly organised system, get bank finance for it and concentrate purely on growing a business. After all (if you are into thiese things and unless there’s a clause in the contract) nothing stops you from selling an established franchisee after you got a sufficient experience and start up an own business in the similar field.Send a post when you get into a business!
Cheers,
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