Turn it Up in the Down Turn

Bad economy? Forget about it. Why now is a great time to buy a franchise. By Carol Tice I Entrepreneur Magazine - December 2008

URL: http://www.entrepreneur.com/magazine/entrepreneur/2008/december/1 98682.html
There are 277 homes in the Clermont, Florida, neighborhood where Ronald 0liver lives, and he estimates that 80 of them are in foreclosure. But that gloomy news didn2t stop 0liver from quitting his job as a supervisor at Universal Studios and becoming the co-owner of a Maaco paint and auto-body repair franchise in Kissimmee.
Since opening in July, 0liver and his partner, former Universal co-worker Kenny Lagreca, 39, have focused on aggressively marketing the business. 0liver, for instance, has handed out 1,700 business cards around town to local businesses. That legwork paid off not only in an exclusive contract to serve a local car dealership, but also in a steady stream of individual customers. In the shop2s first 30 days, 0liver says they gave more than 600 estimates and worked on more than 100 cars, eventually making about $168,000 in the first two months.
0liver says being part of Maaco gave the pair many advantages over starting an independent repair shop, from professional site-selection advice to a bankable brand name that helped get their $500,000 SBA loan approved. "We put our shop on a plot Maaco helped us find, put our sign out, and we haven2t stopped since," says 0liver, 35. "We2re starting out at a bad time, but it2s working out really well."
When times get tough, franchising can offer many advantages over going into business on your own. "Buying a franchise makes more sense in this economy than either buying an existing stand-alone business or opening your own business," points out Michael Katz, president and CE0 of The Franchisee Consulting Group. "You2re getting a proven system and being taught how to do it correctly. You2ve got a leg up on any mom-and-pop competition."
Franchises also have a proven track record of powering through previous economic downturns. International Franchise Association figures for 2001 to 2005 show that despite the downturn that came after 9/11, the franchise sector2s economic output had average annual growth of 9.7 percent, about three times greater than the economy as a whole.
0pening in a downturn, however, requires careful research and planning, says IFA Educational Foundation president John Reynolds. With franchise sector growth possibly ramping up slower in the next year than it would have a year or two ago, missteps can be fatal. So proceed with caution. Now2s not the time to fall in love with a concept and, starry-eyed, take the plunge. "The finances have to work," says Reynolds, "no matter how much you love the business."
Good News, Bad News
The current economic decline has a couple of unique aspects compared with previous downturns. The good news? In many markets, commercial and retail real estate is cheaper and more available than it has been in a long time, notes Michael Seid, a franchise consultant and the co-author of Franchising for Dummies.
Many chains are scaling back or closing, from Bennigan2s restaurants to Starbucks. That means landlords have empty spaces and are motivated to fill them. "I2m seeing something we haven2t seen in years: landlords coming to the table with build-out allowances," says Seid. "Previously, if you2d mention it, they2d start laughing."
The bad news? Finding funds for your purchase may be tougher now than at any time since the savings-and-loan scandal of the 80s, Seid says, especially if you don2t have good credit. The banking-sector subprime mortgage meltdown that began in the fall of 2007 means many banks have less money to lend and are skittish about making riskier loans. Many prospective franchisees are looking to alternative financing to get around this hurdle (see "Financing Gets Creative" on page 99), and Seid says lower-cost franchises are gaining popularity this year.
As entrepreneurs contemplate buying franchises, they should take care not to overextend themselves financially, says Reynolds. It2s hard to predict how long it will take for a new franchise to turn a profit, especially now. To make sure you won2t run out of cash, Reynolds recommends running your projects by a financial advisor. "If you put every dime into a startup and it takes you a while to get the business going, that2s a huge risk," he says. "You should reserve a portion of that as working capital for the first year or two."
That philosophy helped Boston-based Edible Arrangements franchisee Chris Dellamarggio, 38, tough out the last downturn in 2002. The former market-research executive was the fruit-bouquet company2s first franchisee and opened just months
before 9/11. Dellamarggio took out a manageable loan against his condo to finance the purchase and kept his expenses low. He paid his two employees hourly and sent them home the minute work finished each day. He also kept up his marketing: During slow times, he sent free bouquets to businesses to keep word-of-mouth going. As the economy turned up again, he expanded and now has four locations doing about $2 million in combined annual sales. "I knew I had to muck through it," he says, "and if I kept getting the product in front of people, I would get there."
Time to Investigate
No one should ever buy a franchise without careful research. In a downturn, though, this step is especially important. You need to find out if your franchisor has the resources to help its franchisees through this difficult time. Rey-nolds recommends asking about services franchisees can tap, such as co-op purchasing, that will drive down operating costs and increase survival odds. Does the franchisor offer affordable software programs, mentoring or business coaching? "Ask them, What are you doing to help improve my bottom line? " says Reynolds.
Each franchisor discloses details about its business in a Franchise Disclosure Document, or FDD, which you should study and use as a starting point for your investigation. From there, research franchise managers backgrounds and talk with as many franchisees as you can.
Many franchisors won t disclose their earnings or will only offer partial information on franchisee results. So talk with franchisees and ask franchisors direct questions about how the business is faring this year. "They can tell you trends in same-store sales without giving numbers," says Seid. "Are they going up? That s a straight-out fact a franchisor can give you."
New PuroClean franchisee Brian Medaglia, 39, opened his Arlington, Virginia, franchise in July after interviewing franchisees and grilling executives about their ability to manage the chain s growth. He learned the CE0 had previous experience running large franchise systems and that a key vice president had spent his entire career in the home-restoration business. "I asked franchisees, Are you profitable? Is the system working for you? and 99.9 percent said yes," says Medaglia. "I could tell the 0.1 percent treading water weren t following the system."
While you re talking with franchisees and the franchisor, get a feel for the corporate culture and think about whether it s a fit for you, advises Lori Kiser-Block, president of franchise consulting firm FranChoice. "A tried-and-true franchisor probably isn t looking for a cowboy entrepreneur," she says. "But new and emerging franchisors are looking for risk-takers, and that ground-floor opportunity with the right franchise can be extremely rewarding."
Also find out the franchisor s expansion plans, says franchise attorney Terrence Dunn. Are they too aggressive? "0ften they start encroaching on their own people and cannibalizing their territories," he says. "Even with a good concept, that can leave you struggling."
Another way to research a franchise is to check the price of any units for sale. If the price is lower than the franchise s startup cost, and the franchisee has been working the business for years, something s wrong, Seid notes.
While you re looking over sale prices, consider an existing franchise. During a slowdown, an existing business gives you a leg up: It already has a customer base and some name awareness in its market. "Plus, you can see if customers are happy and business is trending well," says Seid. "You also know what your staff looks like."
Picking the Right Concept
There s no question that generally some types of businesses fare better in a recession than others. Expensive restaurants tend to suffer, but people continue to need haircuts. Still-hot niches our experts identified include products and services tailored to Latinos, as well as child-care, elder-care and home-repair franchises.
Does that mean you should shop for a countercyclical concept? It depends in part on your own interests, income needs and long-term plan for the business. Medaglia, a former airline pilot, specifically looked for something that would be recession-proof and profitable right away. Because PuroClean focuses on helping homeowners with water damage and other house damage usually paid for by insurance, it s rarely affected by the downturn, he says. Medaglia was in the black within 90 days of opening, and he projects sales well into the six figures this year.
0thers have done well with concepts that at first blush might not seem obvious choices in 2008. The success found by Scott Pekovich, a Salad Creations franchisee in Billings, Montana, points to a key fact about the current downturn: It doesn t affect every market in the same way.
Billings economy has stayed fairly strong, notes Pekovich, 38. The PGA golf pro sensed an open niche for a healthy quick-serve restaurant, and despite the generally gloomy outlook in the restaurant sector this year, he opened his Salad Creations eatery in May. Since then, the restaurant has ranked in the top two in gross revenues in the roughly 50-unit chain nearly every week. Pekovich, who projects 2008 sales of $700,00, eventually plans to open about 35 Salad Creations throughout Montana, Idaho, the Dakotas and Spokane, Washington. "We felt the demand was there," Pekovich says. "It s unique and healthy, offering lots of choices."
Bad times can also provide opportunities to take advantage of others lack of conviction or business savvy. That was Bob White s strategy during the 2002 downturn. White, 46, opened his first The Maids Home Services franchise just a few months before 9/11.
Shortly after the economy tanked, White got a call from another Maids franchisee in his Dallas-Fort Worth market who was looking to sell. In short order, White bought out four local Maids franchisees. Each let him pay for the franchise in installments, keeping his investment costs low.
Suddenly, White had a dominant presence in the market and began advertising aggressively. Moving operations into one office created efficiencies that made the expanded territory instantly profitable. Last year, his franchise brought in $2.3 million. "There was quite a bit of uncertainty back then," White says. "But I was confident in what I was doing. And I still believe there2s huge upside potential in my market."
Seattle writer Carol Tice reports on business, finance and social issues for Seattle Magazine, Washington CEO and other leading publications.
Copyright © 2008 Entrepreneur.com, Inc. All rights reserved. Privacy Policy

Economy Shrinks, Small Business Market Grows

We’ve all read that small businesses are the backbone of the U.S. economy. It seems logical to assume that the small business market must shrink during a recession. In fact, the opposite is true. These are the types of misconceptions that marketers to small businesses must expose in boardrooms and budget meetings to be successful during a recession. This article is the first in a four part series highlighting the strengths of marketing investments in small businesses, as compared to consumer or enterprise alternatives, in the next 24 months. During downturn economies, not only does the net number of small businesses grow, but the number of start-ups actually increases vs. previous years. Trouble in the corporate sector tends to serve as a launching pad for would-be entrepreneurs. Where do all of the smart, aggressive, educated, A-type personalities at Lehman Brothers, Goldman Sachs, and AIG go when their firms make massive layoffs or cease to exist? Many of them start their own business. If history serves as a guide, the number of new businesses spikes as recessions get deeper.






Not only does the small business market offer continued growth during a recession, it also offers relative stability. Take a look at the growth rate of the small business market vs. that of consumer spending. Consumer spending sports impressive growth rates during the best of times, but also suffers wild swings during recessions. Conversely, the small business market offers a more stable source of revenue through good and bad economies. Year-over-year peak-to-trough changes in the small business growth rate are less than a third of the drops seen in discretionary consumer spending. The small business market is not only an important source of diversification for enterprise companies, but also a relative safe haven for investment during recessions.

The Entrepreneur's Source in Pickering offers Virtual Coach for Aspiring Entrepreneur's

Franchise Match®.com launched as the pinnacle of powerful portals helping people find their fortunes in franchising
Pickering, Ontario (Grassroots Newswire) -- Jeff Gordon , a Business Coach with The Entrepreneur's Source in Pickering now has a sophisticated ‘online’ tool to help aspiring entrepreneurs determine what business would be best suited for them with the recent launch of the company's virtual business coach, FranchiseMatch.com.
A unique, powerful information portal, FranchiseMatch.com, unparalleled in the franchise industry, has been launched as a virtual coach guiding people through an online process of creating an individual, customized profile of franchise concepts that match their goals, needs and expectations. Designed around a unique five-step process, FranchiseMatch.com takes each visitor through a series of questions that narrow down the possible franchise concepts which will ultimately match their lifestyle requirements, location preferences and available capital.
“After people complete the five-step process will I then personally assist them with the next steps in the discovery process at no obligation, said Jeff. “In the franchise industry, FranchiseMatch.com is now the Gold Standard of online educational portals offering visitors an unprecedented amount of information across all industries and hundreds of franchise opportunities available today,” said Jeff Gordon, Pickering business coach for The Entrepreneur's Source. “This very unique portal site draws on our franchise opportunity experience and allows a visitor to build a customized profile that is matched with franchise concepts that meet their long-term personal and business goals. I'm very excited to be able to offer this service to potential entrepreneurs.”
Beyond the volume of industry information, the site also contains facts and figures provided by the International Franchise Association (IFA). FranchiseMatch.com is one of many coaching tools offered to aspiring and established entrepreneurs by FSBI, the country’s leading educational franchise and Business Coaching firm. Over 200 Business Coaches based in North America provide Business and Franchise Coaching, and through a partnership with E-Myth® Worldwide, entrepreneurs have access to the largest franchise network providing business success education and business coaching.
The Entrepreneur's Source is a leading business coaching firm specializing in helping people discover the right business for their goals, needs and expectations and assist business owners to reach a new level of performance. Gordon provides executive coaching in areas including: opening a new business, communications and leadership, market and business planning, exiting a business, increasing profitability, expanding operations and exploring a new business.
For more information on The Entrepreneur's Source in Pickering or FranchiseMatch.com, please contact Jeff Gordon at 1(866)661-9791.

About The Entrepreneur’s Source The Entrepreneur’s Source (TES) is North America’s leading career and business coaching company with more than 240 offices in the United States and Canada. With its unique E-Source Coach Advantage, TES offers a full range of services to individuals seeking alternate career options and to small-to-medium size companies looking to increase performance.

The Entrepreneur's Source® in Pickering offers new curriculum to area entrepreneurs Using E-Myth Business Success Programs

Pickering, Ontario (Grassroots Newswire) July 25, 2008 -- Great partnerships equal great opportunities. And creating more opportunities for current and aspiring entrepreneurs is the intent behind the recent partnership of The Entrepreneur's Source (www.EsourceCoach.com) and E-Myth Worldwide (www.E-Myth.com).
Now, Jeff Gordon in Pickering, is armed with additional business success systems and tools for training clients who are looking to become entrepreneurs or who want to take their business to the next level.
"In my Coaching practice, which now includes the powerful E-Myth tools, I help individuals build a successful, profitable business. Incorporating the E-Myth curriculum into my coaching creates an extremely powerful resource for entrepreneurs" Gordon.
With many people choosing entrepreneurship as a career alternative, AdviCoaches provide educational resources and coaching to get them ramped up. And for existing business owners, Coaches help laser focus on specific areas of business that may need improvement,” says Brian Miller, President of The Entrepreneur’s Source.
For more than 30 years, E-Myth has helped small business owners develop the strategic knowledge to start a business or take an existing business to the next level of success. The partnership will allow Gordon to enhance The Entrepreneur's Source's business coaching programs and assist clients in the Pickering area in developing the skills and knowledge they need to achieve predictable business success.
"The E-Myth business success system has been embraced and successfully leveraged by small business owners, independent franchisees and leading franchise corporations," said Bill Schlegel, CEO of E-Myth Worldwide. "The Entrepreneur's Source shares our commitment to entrepreneurial success. Together, we'll support the estimated 20 million self-employed individuals in the U.S. leveraging E-Myth's proven business success coaching platform."
The Entrepreneur's Source is a leading business coaching firm specializing in helping people discover the right business for their goals, needs and expectations and assist business owners to reach a new level of performance. Gordon provides executive coaching in areas including: opening a new business, communications and leadership, market and business planning, exiting a business, increasing profitability, expanding operations and exploring a new business.
E-Myth Worldwide, based in Santa Rose, CA, is the leader in online business education. The company helps small business owners implement the business success systems articulated by Michael Gerber in his bestselling book, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It.
For more information on The Entrepreneur's Source in Pickering and the E-Myth curriculum, please contact Jeff Gordon at (905) 231-1648.

About The Entrepreneur’s Source The Entrepreneur’s Source (TES) is North America’s leading career and business coaching company with more than 240 offices in the United States and Canada. With its unique E-Source Coach Advantage, TES offers a full range of services to individuals seeking alternate career options and to small-to-medium size companies looking to increase performance.

© 2008 E-Myth Worldwide, Inc. All rights reserved. Information is subject to change without notice. E-Myth and the E-Myth Worldwide logo are trademarks of E-Myth Worldwide, Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.

Preparing yourself for the New Career Economy by Jeff Gordon

Is it time you took control of your future? Over the past decade, many of us have had to make changes in our career path that we were not expecting. What I am writing about has been called the “New Career Economy”. When we compare the “New” with the “Traditional” career economy of the past, we have found that the days of working for a single employ­er and retiring with a pension and a gold watch is a thing of the past. The “New Career Economy” no longer offers the security and financial rewards that our parents and grand­parents depended on. There are many factors contributing to this “New Career Economy” effect. Some to consider would be corporate downsizing, job insecurity, job dissatis­faction and burnout. People are looking for freedom, securi­ty, benefiting from their own hard efforts and to create a pos­sible career option for their children.
75% of the population wants to be self-sufficient, but the majority do not know how to get there. For those that would like to consider self-sufficiency, there are a few options:
1. Start your own business from scratch
2.Acquire an existing business
3. Consider franchising
Starting your own independent business can be the most risky. Length of time to ramp up can create cash flow prob­lems in future years. The independent owner must have knowledge of all phases of the business and have the ability to create and execute an operating plan. Purchasing an exist­ing business offers a lesser degree of risk because of existing customers, which means immediate cash flow. However the value of the business may be at its peak, you are paying for the cash flow which could make this a more expensive option. With either option the owner of the business is “going it alone.” That perceived freedom and security that they were seeking is in great jeopardy.
The third option is franchising. The majority of franchis­ing opportunities require no experience or background. Franchisors are looking for people who want to be in the business of business and not be technicians. Franchisors also look for people who are interested in not only a single unit, but also in multi-units, masters, area and regional develop­ment opportunities. Franchising allows a business owner to be in business for themselves but not by themselves. When purchasing a franchise you are getting into a proven business model that you are able to validate before committing your investment dollars.
In closing, we know that the job security of the past is no longer available. We also know that for the majority of Canadians there will be a need to work later in life to be able to afford retirement. Now might be the time for you to con­sider self-sufficiency through starting a business, acquiring a business or franchising. You owe it to yourself and your fam­ily to discover what options are available for you.
Jeff Gordon moved to the GTA in 1974; living in Pickering with his wife Debbie and daughter Patricia. His previous work experience was working for several large financial institutions performing quality assurance testing on a variety of banking machines. After being downsized he sought a career change, where he found The Entrepreneur’s Source because “I enjoy helping my clients discover the possibilities of new career options.”

The Entrepreneur’s Source Jumps 45% in Entrepreneur Magazine’s Franchise 500 Rankings

© Business Wire 2007-12-21

For 8 consecutive years, The Entrepreneur’s Source, TES (http://www.esourcecoach/) is being honored once again by Entrepreneur Magazine, ranking the market-leading business coaching and consulting franchise in the top Franchise 500. This 8-year distinction, and a rise in rankings by 45% from 2007, further positions The Entrepreneur’s Source as a world-class franchise organization.

”This honor and new higher ranking points to the great year we had in growing the TES franchise base,” said CEO Terry Powell. “This recognition is an acknowledgement of the entrepreneurial spirit of our franchisees and the dedication of the Performance Enhancement Center staff and executives,” he added.

TES, ranked 266, is a market-leader in the business coaching and consulting industry with expertise in self-employment options, franchising, education and training working primarily with small-to-midsize businesses. TES, along with its affiliate brand, Business Advisers International, (BAI) also listed, dominates 33% of the multi-billion dollar coaching/consulting franchise market.

In separate categories, Entrepreneur Magazine ranked TES in the Top Home-Based Franchise list for 2008 placing #70 and also as one of America’s Top Global Franchises coming in at #163.

The Entrepreneur’s Source is one of the national franchise brands under FranchisEsource Brands International, FSBI (http://www.franchisesource.com/), a multi-brand franchisor principally engaged in growing solid concepts into major international franchise brands. Other FSBI franchise brands include Decor&You, Business Advisers International, Business Partner and search tool FranchiseSearch.com..

Entrepreneur Magazine is the leading magazine circulating in the business and franchise community and judges all franchises for the Franchise 500 awards on factors that include: financial strength, stability, growth rate and size of the system.

The Entrepreneur’s Source (TES) is North America’s leading career and business coaching company with more than 250 offices in the United States and Canada. With its unique E-Source Coach Advantage, TES offers a full range of services to individuals seeking alternate career options and to small-to-medium size companies looking to increase performance.

A Recent Entrepreneur Success

As you already know, I have my own business “The Entrepreneur’s Source”, I coach individuals who are considering self-employment as a career alternative and want to explore the possibilities.
I wanted to let you know of my most recent success story…
Ryan is employed in the health care field and works rotating shifts. Ryan wants a business opportunity that allows him to be a semi-absent owner. I presented Ryan a business opportunity that provides:
- No industry experience required
- Low start-up costs
- Published earnings claim, 30% Return On Investment
- Semi-absentee ownership (10 – 15 hours per week)
- Franchise listed in the top twenty of the Forbes Fortune 500
- Recession proof industry
- Industry leader with over 2,500 franchisee’s
- $55 billion industry
- Cash based no receivables
- Multi-unit operation, 5 year franchisees typically own 5-6 units
Ryan was introduced to The Entrepreneur’s Source at a franchise show and he quickly jumped right into our Discovery Process. For Ryan, a man who loves to work and being kept busy, having a business that he can operate in-between his rotating shift work seemed like a natural fit. Thus began a two-month search to find Ryan a business that would support his lifestyle goals, needs and expectations.
Then the rigorous process of financing! Ugh. But working with a coach can and will make all the difference. "This is all very new to me and the process would be an intimidating one without a coach to help." Ryan said.
We are thrilled to announce a new Entrepreneur has joined our ranks! Ryan will be opening his new business within the next few months. What an accomplishment!
Typically, my clients are interested in new challenges; frustrated with their current job or career path; unemployed due to downsizing, rightsizing or capsizing; considering a career transition; wanting to develop an alternative source of income; or looking to pursue their dreams of self-employment. Franchising is one option many clients consider.
Only 8% percent of all business are franchises, in 2007 2.4 trillion dollars, that is correct trillion dollars, or 50% of all consumer spending was at a franchise business. The five-year failure rate for independent business is 80% the failure rate for franchises is 8%. It is an easy decision where you will find the highest success rate!
This is a great opportunity to expand the number of small business-owners. The fact that The Entrepreneur’s Source is independent, with no exclusive ties to any company or franchise, makes us unique and completely focused on the success of our clients.

How I can help you

The Entrepreneur’s Source

The Entrepreneur’s Source is America’s leading franchise ownership consulting organization. With over 300 consultants and thousands of clients nationwide, we have developed a proven process to help you discover possibilities – and find the right career options for you.

What’s the cost of doing nothing about your dream?

We’ve worked with thousands of people just like you, individuals considering business ownership. We have helped them discover businesses that led them to achieving their goals and objectives.

We’re coaches, NOT BROKERS. We’re not trying to sell you anything. We guide you through a process of education about opportunities in business ownership. We have so much more to tell you about The Entrepreneur’s Source, including the benefits of business ownership coaching, our no-risk promise, and our educational process.

Dispelling The Myths About Owning a Franchise

Do you have a dream of becoming an entrepreneur? You’ve reached that point in life where you want your own business. That’s great... you’re taking a step toward having more control over your future. And you’ve considered franchises as one possibility, but you’re ready to dismiss it. From what you’ve heard, they’re a bad idea that usually can’t or don’t work out.

The problem is, what you’ve heard is largely false. A number of misconceptions about franchising exist, and if you accept them at face value, there’s a good chance you’ll be robbing yourself of an opportunity that can not only be financially successful, but personally satisfying. Before you make up your mind, it helps to know the facts:

Myth 1: I’ll Only Become Successful By Finding The Right Business

Many of us equate “right” with what we’re already good at. But that doesn’t mean you need to limit yourself. Define your transferable skills from the corporate world – delegation, people management, marketing, whatever. If you had them in one type of business, you can easily move them to another.

Myth 2: I Can only Be Successful Doing Something I Love

Believe it or not, businesses based on an owner’s background have the highest failure rate. Your franchise business is a vehicle to the lifestyle you’re seeking. If you limit your choices to what you’re familiar with or good at, you’re placing yourself at a major disadvantage, because you’re ignoring a huge number of possibilities that are outside your realm of past business experience.

Myth 3: I’ll Instantly Know The Right Opportunity When I See It

Many people want to fall in love with their business at first sight. That’s an emotional decision, not a career choice. You have to take the time to learn about the details and nuances of the opportunity to understand its potential. You simply can’t do that when you make a determination based on just what you feel today.

Myth 4: I Can’t Be In A Business I Know Nothing About

Of course you can. It’s instinctively natural to want to remain in our comfort zone and stick to areas we have experience in. But as a franchise owner, your business is running and growing your business, no matter what it is. Remember, you have transferable skills. That’s your strength. You can hire people who know the details. Your road to success is buying into and learning the system, which is already a positive working model, then using your talents to make it grow.

Myth 5: There’s No Freedom In A Franchise. Corporate Dictates Everything.

This is one of the most pervasive beliefs. In fact, there’s tons of room for individuality. The franchisor “dictates” only one thing: the basic system; the framework, if you will, that’s already proved successful. Beyond that, you’re in charge. You’re managing your business. You decide whom to hire and fire, how to market your location and how to promote it regionally. Keep in mind that the franchisor wants you to succeed, because if you don’t, it doesn’t. It’s not a complex relationship, but one of the clearest examples of those win-win situations you’re always hearing about.

Myth 6: Franchises Stifle Creativity

Again, this is patently untrue. The only limitations you have are, once again, those that have already been proven to generate income. This might include signage, uniforms, formulas, protocol, and so on – the basics that allow you to represent the brand and your own location as professionally as possible. But it’s completely up to your imagination to think up new ideas and make suggestions to corporate. In fact, most franchise parent companies encourage suggestions, because it’s where many of them get their best ideas. McDonald’s corporate, for example, didn’t come up with the inspiration to start selling breakfast. The concept of the Egg McMuffin was developed by a franchisee.

Myth 7: I Can’t Afford A Franchise

Sure you can, if you look at it for what it is: an investment in your future. Most franchises can be established for well under $100,000, and some can be set in motion for as little as $12,000. Your only expenses to the parent firm are a one-time franchise fee and weekly or monthly royalties, which are usually determined on a case-by-case basis. Beyond that, your out-of-pocket expenses are the same as they’d be for any business – salaries, local advertising, etc. The difference is you have the support and training of the franchisor network, which will also help you ramp up to full speed far more quickly that you could on your own.

Myth 8: I’ll Have to Quit My Job to Become A Franchisee

Many franchise concepts are specifically designed for people who are working other jobs. In fact, approximately 70% of all franchise owners are passive rather than full-time investors.

Can franchises still fail? Sure they can. But the vast majority of the time, over 95%, this is due to the owner deciding to deviate from the system and attempting to cut corners by using inferior materials or altering formulas. The key to making it as a franchise is consistency. If you don’t adhere to the groundwork, which, once again, is in place because it works, your chances of success will drop dramatically. You want to leave the habits from the corporate world where they are, and bring along your marketable and transferable abilities.

All told, there are over 760,000 franchised business in the country, which account for over 18 million jobs nationwide, or one out of every seven in the private sector. They produce $1.53 trillion (yes, trillion with a “t”) in total economic output and represent $506.6 billion in private-sector salaries. Those are figures it’s tough to argue with. Perhaps it’s time to stake your claim.

Education Is Everything

Once you select a franchise investment opportunity for yourself, your education is provided. But what about the decision itself? Even though there are thousands of franchisors to choose from, they can all be rendered down to about 70 different industries.

Not a huge number, but it can still be a bit daunting. How do you research them, and more importantly, how do you choose one?

First, get some basic information from organizations like the International Franchise Association (www.franchise.org). It will also put you in touch with professionals who can offer support, answer questions and provide leads.

Next, consider using a franchise coach from an organization called The Entrepreneurs’ Source. With a 23-year history in franchise placement, they’re specially trained to take you through a discovery process to help you define your lifestyle, goals and dreams. When you’ve identified what you want your lifestyle to look like, it will be easier to pick the right business concept to support that lifestyle.

Once you’ve narrowed down your choices, take the time to contact current and former franchisees to pick their brains. Most are happy to help. You’ll quickly pick up tips about what to do and, more importantly, what not to do.

Finally, don’t just skim the major points of the Uniform Franchise Offering Circular (UFOC) of the franchise you’re thinking about. Read it carefully and completely. It’s a legal document, and offers a wealth of information.

Starting Over After 50

As baby boomers start to turn 60, they may be feeling nostalgic about the early days of their careers, when job security actually meant something and a person could retire comfortably at 65.

Unfortunately, today’s reality for many workers over the age of 50 is downsizing, difficult job searches and the very real prospect of working past 65. Fortunately, this generation is healthier and better trained than any prior generation. They have more opportunities for self-employment than ever before and are increasingly considering that option as they head into their golden years.

According to AARP, nearly half of the self-employment population is over 50, and about one in three self-employed workers age 51 to 69 made the transition to self-employment at or after 50.

“The franchise market has proven to be an excellent opportunity for downsized professionals or career changers to pursue after the age of 50,” according to , a area consultant with The Entrepreneur’s Source.

goes on to say that new business opportunities – particularly in the franchise market – can be a very rewarding and flexible career path for business professionals who have valuable experience that can help them be successful in a new business venture.

Motives for starting a new business or choosing to go the entrepreneurial route are often different for the over-50 business owner. Many have the financial means to buy into a franchise and look at their business as an investment that not only generates income but allows them to have more flexibility and personal freedom.

Franchises are a good place to start when researching whether you’re ready to make the leap to become an entrepreneur. Because they often have long-term strategic plans to build their brand, a tested model and a support structure to help franchisees, they are generally more successful than an independent small business.

Another challenge for baby boomers is knowing what they like to do. Even someone who’s been in a career for 25 years may have trouble determining what their dream job is or what career direction to take. Many may have begun their careers with something different in mind, and decades later, when they’re ready to pursue a new venture, have lost sight of what they envisioned years ago.

Ninety-five percent of the people helped by The Entrepreneur's Source become an owner of a business they would never have considered on their own -- or had already discounted, cites.

uses a unique "discovery process" that allows people to explore business options -- and uncover possibilities that are in sync with both their personal and income goals.

“Our clients look to us to tell them what would be best. But my job as a consultant is to find what motivates them, understand their goals, needs and expectations, and help coach them through The Entrepreneur’s Source discovery process, so they can evaluate options for themselves and determine works best for them,” says.

Whether you’re looking for a more flexible schedule, a home-based opportunity or more time to travel, it’s a good idea to weigh all of your options, suggests.

Entrepreneurship: It’s Becoming a Mom’s World

Women own nearly half of the privately held businesses in the U.S., says the Center for Women’s Business Research. That translates to over 10.5 million businesses that generate over $2.5 trillion, the Center reports. For many women – particularly moms – the flexibility that comes with owning their own business is becoming more and more appealing.

The Center also reports that one in 11 adult women is an entrepreneur. “Women business owners have a different style to leading and growing a business. They tend to build relationships and understand the importance of work-life balance, which is extremely important to business owners who are also working mothers,” Jeff Gordon, a Pickering area consultant with The Entrepreneur’s Source.

As research indicates, women are more likely to listen to the expertise of others, including consultants and experts in order to help build and grow their business.

Melanie Bergeron is the president and Chief Operating Officer of Two Men and a Truck and says that one of the most important things for entrepreneur mothers is having a strong support network.

“An entrepreneur mom needs a strong support person that can help them balance their family/work life,” Bergeron says. “It's no surprise that a new entrepreneur needs to spend an enormous amount of time in the beginning developing their business. My advice would be to set a goal of not working more than 40 hours a week, outsource and delegate as much work as you can afford to do, being part of a franchise System may help you with the support you need.”

With more and more new businesses starting every day and finding the proper fit is critical to a business’ success – and the business owner’s personal satisfaction. For many women, the motivation to become an entrepreneur is find a better work/life balance, so finding the right business is very important, Gordon explains.

Many moms are starting businesses that are family friendly in nature. Business such as childcare centers, preschools or educational programs can all be a good fit for a working mom.

“One of the greatest advantages to owning your own business is the flexibility. You become your own boss, so the things that are important to you – such as on-site childcare or flex hours – are up to you to decide,” Gordon explains.

Gordon uses a unique "discovery process" that allows people to explore business options -- and uncover possibilities that are in sync with both their personal and income goals.

“The most important thing in this process – for anyone, including moms – is finding what motivates them, understand their goals, needs and expectations,” Gordon says.