Do You Know How to Prevent Friends and Family from “Guiding” You to the Wrong Decision of Owning a Franchise?
If there’s one thing most people are good at, at least if you ask them, it’s giving advice. And there’s nothing wrong with asking people for advice – as long as you know when to listen and when to ignore that advice.
Why would you want to ignore well-meaning advice? Because, when it comes to buying a franchise, you’re the one who has done the research. A decision this important should only be made by the people it most affects: you and your immediate family.
Unfortunately, it is fairly common for the friends and family of potential franchisees to try to “scare” them out of making the franchise purchase. In fact, in the industry, it’s called the Ambush and has kept many people from reaching their goals of business ownership.
How can you prevent others from sabotaging your efforts at taking control of your future? It helps if you come to the discussion prepared. Think of these facts as your “ammunition” and you’ll leave the battle victorious.
Scare Tactic #1:
Why do you want to own a business? Don’t most small businesses fail?
While there is a high failure rate for independent small businesses, the reverse is true for franchises. A 1999 study by the United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.
Why does franchising succeed? Here are just some of the ways owning a franchise will give you an edge over being an independent business owner:
Scare tactic #2:
You’re investing a lot of money in this. What if you fail?
The majority of people come to franchising because corporate America has failed them. Americans today are finding that they work longer and harder and earn less. Not only are people not receiving the recognition and advancement they deserve, once you reach a “certain age,” you are likely to be laid off and replaced with a younger, cheaper employee. For those fed up with feeling disposable, business ownership allows them to take control of their future.
The list of other failings and shortcomings of corporate America in regard to employees are reported daily in the business news as mergers, buyouts, layoffs, restructurings, and bankruptcies. With the ever-increasing shift of jobs overseas coupled with companies that fail to keep up with technology and their competition, it’s no wonder that most employees see corporate America as a temporary employment agency.
People who invest in a franchise are not just buying a business – they are investing the money in themselves. This is not like investing in the stock market, a passive investment, where you sit by and watch what happens. When you buy a franchise, you are investing not only money but also time, talent, experience, desire and drive.
And if that isn’t enough, you also have behind you an entire franchise corporation dedicated to making sure you have all you need to succeed.
Scare tactic #3:
Starting a business sounds risky. Why don’t you just change jobs if you are unhappy?
Speaking of risk, think about staying in corporate America! As the above paragraph relates, there is no longer such thing as job security. For people who want to create wealth for themselves and not the stockholders of their employer, business ownership is a tempting option. The track record for franchises is significantly better than stand alone start ups as several long-term studies have shown. Instead of relying just on your own experience to succeed in business, you have an entire franchise corporation dedicated to making sure you have all you need to succeed when you partner with a successful franchisor.
There are only three investments people can make to build equity and create wealth – the stock market, real estate and a business. People who invest in a franchise do not just own a business – they are investing in one of the very few viable means to generate wealth.
Scare tactic #4:
This is an important decision. Maybe you should wait and think about it some more.
TRUTH: No one should make an important decision in haste. That’s why people who go through the FranChoice process are encouraged to do an enormous amount of internal soul-searching and external research. Your FranChoice consultant will select franchise opportunities that match your goals. Those franchisors will also evaluate you thoroughly and will only accept as franchisees people they feel have a very strong aptitude, good financial stability and have the personality and drive to make the business succeed. When you succeed, the franchisor succeeds.
Once you have selected your franchise and been accepted you WILL feel fear. That’s just part of being human. However, waiting is not the answer. If you have confidence in yourself, the confidence that you have been thorough in your franchise research and have the ability to succeed, you can push through the fear and make the decision to focus on your future. The only thing waiting will do is delay your dream.
Ambushes by friends and family can do one of two things:
They can exacerbate your fears and prevent you from achieving your dream of business ownership or they can confirm that you’ve been thorough in your investigation and are ready to commit to your future. Luckily, you can choose to ignore well-meaning but ill-informed advice or, better yet, have your answers ready.
Bonus Read: “13 Most Franchise Myth-Busting“