Business/Franchise Ownership??

[Rider]

Anybody here own their own Business/Franchise?

My wife and I have been seriously considering going down this path. Perhaps share some of the positives/negatives about the experience, things you'd do differently, etc.

 

[graniteman]

I would just say have a long term plan, depending on your age and financial situation set up a SEP IRA a great tool for the self employed, you'll be married to the biz so be prepared for long hours and little pay while it's in it's infancy. Make sure being a couple you agree on not letting the business and it's stress' (money!!) cause fights and cause friction between you two.
Pro's are when it gets established they go on auto pilot for the most part, (just make sure to stay on top of expenditures\bottom line) once this happens depending if you have employee's or not you'll to take off here and there. You'll get out ,for the most part, what you put in
Alot really depends on the type of business tho, big differences between say a retail biz vs a service type

 

[JR Ewing]

I'd really think hard about a franchise. It can be very tempting to want to jump into your own location of a proven business model. But it can be very challenging in and of itself. And many industries can be very labor-intensive, low-margin, relatively low profit, overcrowded with competition, etc.

Not saying don't do it, just saying really do your homework and don't put any blinders on.

 

[monsoon]

I would just say have a long term plan, depending on your age and financial situation set up a SEP IRA a great tool for the self employed, you'll be married to the biz so be prepared for long hours and little pay while it's in it's infancy. Make sure being a couple you agree on not letting the business and it's stress' (money!!) cause fights and cause friction between you two.
Pro's are when it gets established they go on auto pilot for the most part, (just make sure to stay on top of expenditures\bottom line) once this happens depending if you have employee's or not you'll to take off here and there. You'll get out ,for the most part, what you put in
Alot really depends on the type of business tho, big differences between say a retail biz vs a service type

Dont net you have to offer the seep to your employees too?

 

[graniteman]

One other thing I would add Rider. If you have employee's do not pay them just to be there. It's a issue every small biz owner faces but if you don't have the actual work vs hours for them you can not keep them on because they're good employee's. You will go broke and then no one has a job or opportunity. Business is tough and you have to be also. Of course you want to do all you can for them but bottom line is you can only do what is financially feasable.

 

[Yaya]

A Market America convention is like having a bunch of Avon ladies wacked out on Walter Whites crystal meth

Crazy fukkers.. techno music and OPC-3 gets them through the day


Bunch of silly asians

Proceed

 

[graniteman]

A Market America convention is like having a bunch of Avon ladies wacked out on Walter Whites crystal meth

Crazy fukkers.. techno music and OPC-3 gets them through the day


Bunch of silly asians

Proceed

Serious shit YAYa, a friend showed me some tape he took at his Amway convention fuuudge..what a bunch a wackos. reminded me of a Jim Jones re-union. Seriously nutty people out there

 

[-KB-]

I'm in the same boat as you Rider as I may lose my job of 22 years next year.

 

[graniteman]

Dont net you have to offer the seep to your employees too?

Yes, If I remember right you only have to if they have a full 3 years with you. If they been there that long you will want to keep them and it's a great package for them. Contributions are voluntary so if you're having a bad year you don't have to put in til things pick up

 

[Joliver]

I have thought about the idea myself. The only thing that keeps me away from the idea is that the franchise royalties are usually based off of your gross. That can be very painful in a low profit/high volume business.

 

[graniteman]

I have thought about the idea myself. The only thing that keeps me away from the idea is that the franchise royalties are usually based off of your gross. That can be very painful in a low profit/high volume business.

Lots of pluses and minus's with franchises. Franchise fee's can be pretty hefty, you may also hav eto pick up and move for a open territory, they will want business experience . You do get a known established name, product and set up advertising help but the royalty sucks but you will get out what you put in lol. It's a vicious cycle

 

[Joliver]

Lots of pluses and minus's with franchises. Franchise fee's can be pretty hefty, you may also hav eto pick up and move for a open territory, they will want business experience . You do get a known established name, product and set up advertising help but the royalty sucks but you will get out what you put in lol. It's a vicious cycle

I agree. Some people end up picking up and moving for the opportunity. If I had my choice, I would look into franchises that allowed for absentee ownership (some won't).

A lot of advertising is also damaging to the franchise owner too because it is discount sales oriented with the "just get them in the door" mentality. Pizza places are notorious for this. I was watching Domino's CEO on Jim Cramer the other night (JC is an annoying bastard) and the CEO was saying how profitable the company was despite increases in commodity prices because "the franchisee absorbs those costs." Say wha????


You have to take the good with the bad, I suppose.