Jeff Elgin: Buying a Franchise
Passion Vs. Profits
What's passion got to do with buying a franchise?
By Jeff Elgin
| July 03, 2006
URL:
http://www.entrepreneur.com/franchises/buyingafranchise/franchisecolumnistjeffelgin/article159420.html
In any life endeavor, your chances of success increase greatly
if you're passionate about your desired goal. Passion is a huge
source of energy--it drives people to accomplish whatever they set
out to do. And, let's face it, it's far more rewarding and
satisfying to strive for something you're passionate about.
But as a franchisee, do you need to be passionate about the
product or service your franchise is providing to be successful?
Furthermore, do you need to be passionate about the franchise
business at all to be successful?
Truthfully, the answer is no.
You don't need to be gaga over grass to be a great lawn-care
franchisee. There's no need to be passionate about dog poop to
become a super-duper pooper-scooper. And yes, even a vegetarian can
make a great fast-food franchisee. You don't need passion for
the franchise's product or service--but you do need passion for
some personal result that you believe you can achieve by being a
franchisee.
The simple reality is that when most people become franchisees,
their motivation isn't to buy a specific business; their desire
is to buy a certain outcome in their life they'd like to
see as a result of buying a franchise. The specific product or
service involved is often the least of their considerations--as
long as they see the business having a high likelihood of producing
that outcome.
To be a successful franchisee, your passion for the outcome you
seek will give you the drive and energy to overcome the obstacles
involved with setting up any new franchise operation.
It's also very important that you're completely
comfortable with the role you'll have as a franchisee. If
you're only passionate about the product or service, it can
actually be detrimental to success--especially if that passion
leads you to get involved in a franchise business that otherwise
doesn't match well with your skills and goals.
As an example of that dynamic, I don't have to look any
further than my own personal experience. I love movies and have
always had a passionate interest in all things
"Hollywood." In the early '80s, my first franchise
experience was becoming a franchisee of a video-rental store.
I loved the idea of being in the movie business. I had visions
of being in Hollywood and having lunch with Jane Fonda, working the
back lot at Paramount and even walking the red carpet. The decision
to become a franchisee in this business was going to, if not make
me a star, at least put the stars into my life!
What I soon learned as a franchisee was that I wasn't in the
movie business--I was in a standard retail operation where the
product just happened to be movie rentals. The product could have
been shoes, office supplies, plumbing fixtures (or any of a host of
other products), and the business would have been much the same. No
Jane Fonda lunches or red carpets; just long hours, lots of
minimum-wage employees to try and manage effectively, plenty of
fixed overhead, big-time inventory-management issues and a work
environment that absolutely did not match my skills or
interests.
I wasn't happy, and I wasn't accomplishing the dreams I
wanted to achieve in life. Frankly, the experience even ended up
taking away some of the passion I had for movies, since I
associated the negatives of the retail business environment to my
product: the movies.
Don't get hung up on the product; it's the results that
matter. To avoid an experience like mine, you should focus on the
result you want in your life, whether that's more free time,
more responsibility, more income--whatever's driving your
passion.
You should be passionate about this result and make sure the
franchisee role is one you'll want to have while you're
achieving the desired result. Just because you love the unique
sandwiches at a franchise restaurant like Schlotsky's (another
passion of mine) doesn't mean this is the right business for
you.
To help you get started, you may want to consider consulting a
franchise referral network. The good franchise referral networks
all focus on this key point when trying to help people find a
franchise. They strongly urge prospective franchisees at the
beginning of the process to ignore any preconceived notions about
products or services, and instead focus on what results they want
to achieve.
They ask many questions about where the candidate wants to be in
a few years. In their desired outcome, what will be different from
their current life? Where will they live? What will they be
spending their time doing? How much money will they have? What
changes will that produce? What options will that give them? These
types of questions are designed to determine the result that the
candidate wants to accomplish and the level of importance to them
(the passion they have) to make this result happen.
Once a referral network determines the passion driving the
interests of the prospective franchisees, they focus on what types
of role activities match their skills and interests. They spend
considerable time asking questions about what hours the person
wants to work, what types of activities they want to do at work,
and what they see their desired role being long term (once the
business stabilizes after the initial growth period).
Then, and only then, will a good consultant even begin to
consider individual franchise businesses as potential matches.
Whether you use a consultant to help you with this process or just
do it yourself, the exercise is invaluable for finding your passion
and finding the franchise that fits your needs.
Jeff Elgin is the "Buying
a Franchise" coach at Entrepreneur.com and has almost 20
years of experience in franchising, both as a franchisee and a
senior franchise company executive. He's currently the CEO of
FranChoice
Inc., a company that provides free
consulting to consumers looking for a franchise that best
matches their needs.
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