creating income security in uncertain times through
Post on 30-Dec-2021
2 Views
Preview:
TRANSCRIPT
www.execunet.com/hireyourself/
Creating Income Security in
Uncertain Times Through
Franchise Ownership
Pete Gilfillan
Entrepreneur, Franchise Consultant, International Bestselling author of HIRE YOURSELF, and Proud Corporate Escapee
July 16, 2020
www.execunet.com/hireyourself/ 3
Why I Wrote HIRE YOURSELF
My Mission: Help executives take control of their destiny, build wealth, and live life on their terms
www.execunet.com/hireyourself/ 4
My Promise To You
● To teach you about franchising ● Answer common questions about
franchising● Share the 8 reasons why the future may
be the right time to consider franchise ownership
● Encourage you to create income security● Offer great resources at the end of this
webinar
www.execunet.com/hireyourself/ 5
What We Will Cover Today….
▪ What Is Franchising? Why Is Franchise Business Ownership Surging?
▪ What’s Trending In Franchise Businesses?
▪ Is Franchise Ownership Right For Me?
▪ How Do You Find The Right Franchise?
▪ Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?
▪ What Are The Capital Requirements for Franchises? What Are Good Sources Of Capital?
▪ What Are The Minimum Investment Levels For Franchises?
▪ Can I Replace My Corporate Income Through Franchising?
▪ What Are The Advantages And Disadvantages Of Franchise Ownership?
▪ Why The Future May Be The Right Time To Consider Franchise Ownership
▪ Why You Need To Create Income Security Immediately
▪ Want To Hear About Some ExecuNet Member Franchise Ownership Success Stories?
▪ How To Learn More About Franchising And Get Some Awesome Resources
www.execunet.com/hireyourself/ 6
What Is Franchising?
Why Is Franchise Business Ownership Surging?
www.execunet.com/hireyourself/ 7
What is a Franchise?
www.investopedia.com
www.execunet.com/hireyourself/ 8
Franchising is Booming
▪ Franchising is more than Subway, Dunkin’ Donuts and McDonald’s
▪ According to IFA there are over 3,000 franchise companies in 75 different industries - touching almost every aspect of our daily life
▪ Franchise businesses make a significant contribution to the U.S. economy (sales and jobs)
www.execunet.com/hireyourself/
cc: david_shankbone - https://www.flickr.com/photos/27865228@N06
9
Franchise Ownership Becomes A Viable Option For Executives…
▪ Future layoffs and downsizing▪ Under-employed consulting and contract work—a
new reality▪ Employees now change jobs every four years versus
30-year career ▪ More intense age and unemployment
discrimination “Control your own destiny or someone else will.”
- Jack Welch
% of 50+ Corporate Executives Force Into Retirement
% That Earn The Same or Higher Salary at a New Job
www.execunet.com/hireyourself/
Why More People Are Taking Path Of Franchise Ownership
10
Control their destiny
Create income
Build an asset
Be their own boss
Make a difference
Be engaged
Be rewarded for hard work
Build and lead team
Be happy, satisfied, and proud
Create a family business
Leverage personal capital
Create career and income security Beat ageism
www.execunet.com/hireyourself/ 11
What’s Trending With Franchise Businesses?
www.execunet.com/hireyourself/
Two Franchise Models
12
Service-based (B2C or B2B):
▪ Home Improvement: painting, flooring, closets, garages, window treatments, kitchen, and handyman services
▪ Professional Services: window cleaning, residential/commercial cleaning, restoration, plumbing, lawn maintenance, HVAC, and business coaching
▪ Personal Services: In-home care, senior living location, and estate sales
Facility Based (Strip Mall):
▪ Health and Wellness: fitness, massage, medi-spas, and weight loss
▪ Beauty: haircare, nails, facials, lash extensions, and hair removal
▪ Children: tutoring, pre-schools, martial arts, and sports training
www.execunet.com/hireyourself/ 13
Is Franchise Ownership Right For Me?
www.execunet.com/hireyourself/ 14
Determine What Characteristics Are Important To You
▪ Level of engagement/involvement
▪ Desired income/cash-flow
▪ Manage and lead employees
▪ Growth/scale
▪ Location
▪ Status
▪ Comfort level with sales
▪ Family
▪ Schedule
▪ Risk tolerance
▪ Duration
www.execunet.com/hireyourself/ 15
▪ Sales and business development
▪ Managing and leading people
▪ Ability to follow processes
▪ Satisfy customers
▪ Process change and evolve over time
www.execunet.com/hireyourself/ 16
Do You Have The Five C’s?
Critical Characteristics:
CAPACITY
CHARACTER
CAPITAL
CUSTOMER SATISFACTION
COOPERATION
www.execunet.com/hireyourself/ 17
Do You Have The Traits Of A Successful Business Owner
▪ Disciplined
▪ Confident
▪ Open-minded
▪ Self-starter
▪ Competitive
▪ Creative
▪ Determined
▪ Passionate
▪ Strong people skills
▪ Solid work ethic
www.execunet.com/hireyourself/ 18
How Do You Find The Right Franchise?
www.execunet.com/hireyourself/
Finding A Franchise That Fits You
19
1
2
3
5
Know the characteristics of what you are looking for in a business
4
Know what you want to accomplish with the business
Leverage a proven investigation process for your validation
Keep an open mind
Have FUN with your investigations
6
Remember, don’t turn your hobby into your business
www.execunet.com/hireyourself/
Finding A Franchise That Fits You (Your Search Process)
20
Utilize franchise inquiry websites
Example: www.franchisegator.com
Contact franchise companies directly
Example: www.supercuts.com
Leverage franchise consultant (free service)
Connect to potential franchise matches
Example: www.HIREYOURSELF.com/gilfillan
Good
Better
Best
www.execunet.com/hireyourself/ 21
HIRE YOURSELF Investigation Process
CandidateCompletes
Questionnaire
Conduct Consultation Call
and Create Model (summary)
Screen Franchise Concepts
–Match Key Model
Characteristics
Connect To Franchise Companies
and Candidate Starts
Investigations
Provide Weekly Education and
Coaching
Provide Resources
Support Decision Making Process
(Fear)
www.execunet.com/hireyourself/
Things Candidates May Consider When Investigating Franchises
22
1Experience of leadership team
2Launch support and training
3Franchisee satisfaction
4Image and reputation
5Size of franchise system
6Upcoming concept or established
7 Culture/feel
8 Marketing model
9 Ongoing support
10Level assistance with site selection and build out11
Financial strength of franchise company
www.execunet.com/hireyourself/
Four Core Steps : Over Six Week Period
Candidate’s Investigation Process
23
Determine key characteristics
and what want to accomplish
Determine engagement level
and franchise category type
Introduction CallFranchise Disclosure Document
Franchisee Validation
Discovery / Meet Team Day
Other Steps: Marketing Overview, Training Overview and Funding Plan
Franchise Introductions
Candidate Validation and Due Diligence Process (Completed On Their Own)
www.execunet.com/hireyourself/ 24
Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?
www.execunet.com/hireyourself/
Franchise ownership where you work “ON” the business versus work “IN” the business.
You set the overall direction and make the key decisions while overseeing a manager that manages the business
25
Growing Movement
www.execunet.com/hireyourself/
Levels of Engagement:
Franchisee Engagement
26
Executive Franchisee
Works “ON” the business and scaling it over time
Works “IN” the Business
Artisan FranchiseeSemi-Absentee Franchisee
manager operated/part-time 15-20 hours
week
Full-Time Franchisee
engaged full-time, but not artisan
Area Developer/Multi-Unitmultiple territories/locations in larger geographic area
www.execunet.com/hireyourself/ 27
What Are The Capital Requirements for Franchises?
What Are Good Sources Of Capital?
www.execunet.com/hireyourself/ 28
Two Primary Capital Requirements
▪ Liquid Capital: Need a minimum of $75K - $100K▪ Liquid capital may be: cash, stocks, bonds, equity
in your home (HEL) and retirement savings (ROBS)
▪ Personal Net Worth: Need a minimum of $100K
▪ Net worth = Assets - Liabilities
29
Funding Resources
SBA Loans
Traditional Loans
Franchisor Financing
Home Equity Line (HEL)
Brokerage/
Portfolio Line
Retirement Savings
(ROBS)
Outside Investors
Family and Friends
www.execunet.com/hireyourself/
www.execunet.com/hireyourself/ 30
What Are The Minimum Investment Levels For Franchises?
www.execunet.com/hireyourself/
Total Investments – Significant Range
▪ Service Based: Minimum $75k+
▪ depends on size and number territories, equipment needs, and working capital
▪ Facility Based: Minimum $200k+
▪ depends on facility size and buildout, equipment, furnishings and working capital
31
www.execunet.com/hireyourself/
(FDD Item 7)
Investment Breakdown
TYPE OF EXPENDITURE AMOUNT
Initial Franchise Fee $50,000
Initial Training Program (Fees) 0
Travel and Living Expenses (Training) $1,000 - $3,000
Real Estate/Lease $10,000 - $20,000
Leasehold Improvements $20,000 - $60,000
Insurance $1,000
Equipment $70,000 - $90,000
Pre-Sale Start Up Package $7,000
Inventory Kit $10,000
Utilities Deposits $0 - $1,000
Licenses and Permits $0 - $3,000
Furniture and Fixtures $15,000
Computer System $1,000 - $2,000
Advertising and Marketing $12,000
Shipping $3,000 - $9,000
Installation $4,000
Additional Funds (3 Months) $10,000 - $20,000
TOTAL ESTIMATED INITIAL INVESTMENT $214,000 - $317,000
32All Numbers Provided Fictitious NOT For Investment Decisions
www.execunet.com/hireyourself/
Leverage Financial Resources – To Scale Your Business
33
Location 1
Cash
SBA Loan
Location 2
HEL
ROBS
Location 3
ROBS
Convent Loan
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
All Numbers Provided Fictitious NOT For Investment Decisions
www.execunet.com/hireyourself/ 34
Can I Replace My Corporate Income Through Franchising?
www.execunet.com/hireyourself/ 35
The Financial Performance Of The Franchise Business Depends 100% On You…..
All Numbers Provided Fictitious NOT For Investment Decisions
www.execunet.com/hireyourself/
It Takes Time And Scale To Replace A Corporate Income Corporate Executive Salary Pay Yourself Salary and Build Assets
Year 1 $200,000 SalaryUNIT 1
$0 Salary
Year 2 $210,000 SalaryUNIT 1
$50,000
UNIT 2:
$0
Year 3 $220,000 SalaryUNIT 1
$75,000
UNIT 2
$50,000
UNIT 3
$0
Year 4 $230,000 SalaryUNIT 1
$100,000
UNIT 2
$75,000
UNIT 3
$50,000
Year 5 and on $240,000 SalaryUNIT 1
$125,000
UNIT 2
$100,000
UNIT 3
$75,000
5-Year Asset
Check:$0 asset value of job
3 Franchise Units —
Potential Asset
36You Must Complete Your Own Validation. All Investments Have Risks, Including Failure
All Numbers Provided Fictitious NOT for investment decisions
www.execunet.com/hireyourself/ 37
What Are The Advantages and Disadvantages of Franchise Ownership?
www.execunet.com/hireyourself/
Saves You The Time
Capital Associated with Developing
Proving Out and Refining Your Own Business Concept/Model
cc: Instant Vantage - https://www.flickr.com/photos/44312356@N04
Franchising = Entrepreneur Lite
38
Business In A Box -Turnkey
Provide Operating System
Improve Success Ratio
Provide Training and On-going
Support
Value of Being Part of Network
Franchisees
www.execunet.com/hireyourself/ 39
Disadvantages of Franchises
Ongoing Royalty Payments
Franchise Company Restrictions Must Follow System
Risk of FailureLong-term Commitments (Agreements) Wrong Match Painful
www.execunet.com/hireyourself/ 40
F alseE videnceA ppearingR eal
Why People Go Through Their Investigation Process And Choose Not to Invest
● Business ownership isn’t for everyone● It is A LOT of work evaluating franchises● FEAR and ANXIETY stops many people from
following their dreams● Lack of capital● Still believe a job = income security● Maverick mentality ● Family and friends kill person’s dream● Not capable of making a decision
41
8 Reasons Why Right Now is the Time to Become a Franchisee
Diversify Your Assets and Income
Leverage a Potential Softening of the Real Estate Market
Franchise Validation Opportunities
Business Resale Options
Create Income
Security
Take Advantage of
the Labor Pool
Capitalize on Pent-up Demand
Leverage Economic Resources
www.execunet.com/hireyourself/
www.execunet.com/hireyourself/ 42
Why Do You Need To Create Income Security?
If you haven’t already been laid off or packaged out… you could be next!!!!
www.execunet.com/hireyourself/ 43
Companies with Major Corporate Layoffs
General Motors 6,500Macy’s 3,900HSBC 35,000Hilton 22%Chevron 10-15%General Electric 10%Boeing 10%, +7,000 more soonAirBnb 25%United Airlines 30% in April, 36,000 nowHertz 10,000 (25%)Marriott 117,000Tenet Healthcare 11,000AT&T 3,400BP 10,000ClassPass 22%
www.execunet.com/hireyourself/ 44
The Bad Numbers…Tons of Uncertainy
▪ The Congressional Budget Office thinks real unemployment is 24.9%, with more layoffs coming
▪ The CBO predicts 15% more employees will become unemployed in Q3▪ Jobs in retail, warehouse, factory, and transportation areas are threatened by
increased automation▪ 75% of independent restaurants may not reopen▪ 4 out of 10 jobs aren’t coming back (a total of 13.5 million jobs are gone)▪ 11% of companies announced pay cuts for C-level employees▪ Mid-market companies have seen the highest level of pay reductions
www.execunet.com/hireyourself/ 45
The Next Few Years Will Be Tough for Senior-Level Execs
▪ Ages 45-54 are 10.4% of the total unemployed▪ Those 50+ are 11.5% of total unemployment… and rising▪ Job listings are down 20% compared to 2019▪ Most sectors are hiring between 5-22% fewer people than they were last year▪ 61% of C-Suite executives saw pay reductions—many of these will be permanent▪ Unemployment and age discrimination still exist ☹▪ Higher paying jobs are declining while low-paying hourly worker hiring is
exploding (Instacart +300,000, McDonald’s +260,000, Amazon +175,000)▪ 50% of 50+ executives are forced into retirement before they are ready and
unfortunately only 10% of executives taking a new job make the same or more income
www.execunet.com/hireyourself/ 46
Now Is The Time To Create Income Security
▪ If You Are In Career Transition: As you explore your many options for future, consider franchise business ownership.
▪ If You Are Currently Employed: Keep your job and create a secondary income through semi-absentee franchise ownership. Create a bridge to escape the corporate world and a safety net for the future.
Jobs are no longer
income security!As a business owner you will
not be laid off, given a
separation package or be
furloughed!
You will have income security!
www.execunet.com/hireyourself/ 47
Want To Hear About SomeExecuNet MemberFranchise OwnershipSuccess Stories?
www.execunet.com/hireyourself/ 48
ExecuNet Member Success Stories
Mike Furnisshttps://www.execunet.com/trading-corporate-life-entrepreneurship/
Mike’s story can be found here
Bill Welshhttps://www.execunet.com/trading-corporate-life-entrepreneurship-4/
Bill’s story can be found here
Keith Evanshttps://www.execunet.com/become-entrepreneur-keeping-corporate-day-job/
Keith’s story can be found here
https://www.execunet.com/trading-corporate-life-entrepreneurship-2/
Jim’s story can be found hereJim Griffin
https://www.execunet.com/quit-corporate-job-never-looked-back/
John’s story can be found hereJohn Weiss
www.execunet.com/hireyourself/
Have More Questions?
REQUEST CONSULTATION CALL
Request a free quick consultation call
Learn if franchise ownership may be right for you
Receive your free copy of the HIRE YOURSELF book
Go toHIREYOURSELF.com/execunetoffer
49
www.execunet.com/hireyourself/
Thank YouTo connect with Pete Gilfillan for more information, please submit your name and email through the following link:
HIREYOURSELF.com/execunetoffer
PGilfillan@hireyourself.com 855 904-7900
www.execunet.com/hireyourself/ 53
8 Reasons Why The Future May Be The Right Time to Consider Franchise
Ownership
Historic Tough Times Tend to Bring Future Opportunities
www.execunet.com/hireyourself/ 54
Create Career and Income Security
Protect yourself from future corporate layoffs.
When you own a business, you will not be fired or laid off.
Job income isn’t secure because you are renting it from your employer.
www.execunet.com/hireyourself/ 55
Diversify Your Assets and Income
Tired of the stock market roller coaster?
Your investment success maybe left up to someone on Wall Street who isn’t vested in your interests, only their own success.
With a business, you are in control your income and assets.
www.execunet.com/hireyourself/ 56
Take Advantage of the Labor Pool
Hiring just a few months ago was hard; unemployment was low.
Now there is an improved labor pool.
With more people eager to work, you can hire the best workers for your new business (top grade team).
www.execunet.com/hireyourself/ 57
Leverage a Potential Softening Real Estate Market
Landlords maybe hunting for new tenants.
Signing a lease in the future may mean better terms and options.
i.e. tenant improvement and lease abatement dollars.
www.execunet.com/hireyourself/ 58
Capitalize On Pent-up Demand
People are going to want to get back to living their lives.
Purchase products or services they postponed during tough times.
www.execunet.com/hireyourself/ 59
Validate the Franchise
In this unique time, you will be able to learn:
▪ How a franchisor supported franchisees during turbulent times.
▪ How franchises managed their business during the coronavirus.
www.execunet.com/hireyourself/ 60
Leverage All Economic Resources
Special SBA programs for new franchise owners are available.
Low interest rates.
Potential and future local financial incentives.
www.execunet.com/hireyourself/ 61
Take Advantage of Business Resale Opportunities
There may be more business owners interested in selling.
Financial terms for a resale might be better in the near future.
top related