Business in a Box

Pro-growth policies in the US have pushed the the stock market to record highs and the prospects for a continued, robust economy are very good. This boom is fostering the creation of millions of businesses providing jobs in abundance.. 

Many of these new businesses are started from franchises, distributorships or licensed business opportunities. These ready made business models are providing a fast track for people to start their own companies while minimizing risk. They also provide prospective owners with an array of choices not to be found on the resale market. I understand the allure of buying an existing business, but you should always look at starting a new one from a turn key model as well. If you approach finding your ideal business by limiting yourself to only existing businesses available in your local market, you are removing 99% of your potential options before you start.

Most people go into business for themselves because they want to have more control over their lives. Making a living on your own terms is one of the greatest virtues of business ownership, so it's important to choose a business that allows for the kind of work week that fits nicely into your lifestyle. Whether you want a flexible schedule, freedom to operate, or a higher income, business ownership will continue to be an increasingly attractive option and tried and true business models will continue to be a safe bet.

Have a question about business opportunities? Send it to dbrunell@dearbornwest.com. Dan Brunell is President of Dearborn West, LLC, an international business opportunity brokerage headquartered in Temecula, CA. He can be reached at 951.587.6929 or on the web at www.dearbornwest.com.

Don't Buy a Franchise

That is, if you have an ironclad business model, you don’t need a franchise. The problem is that business models are formed via an expensive and time consuming process of trail and error in the unforgiving, real world marketplace. People buy franchises and licensed business opportunities in order to mitigate their risks when starting a business. Having a fully formed method for making money is what makes buying a proven model, one of the safest ways to become a business owner. 

B-school professors like to say that the number one reason businesses fail is that they are under capitalized. The real reason they fail is because they lack a sufficient method for getting their product or service into the hands of enough paying customers. This causes the business to run out of operating capital before they can generate enough revenue to cover monthly expenses.

Distribution is the key to any business and it starts with finding customers. Many brilliant business concepts have fallen by the wayside, for lack of an effective sales and marketing strategy. Ralph Waldo Emerson is often credited as saying “Build a better mousetrap and the world will beat a path to your door.” This is simply not true and any entrepreneur can attest to that. Acquiring new customers can be the most difficult, costly and time consuming activity for business owners. Franchises have already perfected the sales and marketing component of the business, which makes initial growth much easier. 

Best selling author and futurist, John Naisbitt has called franchising “the most successful marketing concept ever”. In a franchise, you not only have an established product,  but a field tested distribution strategy and an experienced business partner guiding you. Of course, there are other benefits in a franchised business model, but the goal of any business is to create profit and that is a lot easier when your sales are robust.

Have a question about business opportunities? Send it to dbrunell@dearbornwest.com. Dan Brunell is President of Dearborn West, LLC, an international business opportunity brokerage headquartered in Temecula, CA. He can be reached at (951) 587-6929 or on the web at www.dearbornwest.com.

 

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Dan Brunell

Dan Brunell is the CEO of Dearborn West, LLC, an independent boutique consulting firm that specializes in entrepreneurial talent acquisition and training. Dan has fostered recruiting relationships with over 300 franchise systems throughout North America, created and delivered customized training and coaching programs for global consulting network, and established the best practices and ethical guidelines for this emerging industry space.

Internet Obfuscation

These days most people will use the internet to shop for a business opportunity. This is a reasonable method for gathering information, but be careful not to let the internet define your range of options. This is a common mistake and it is easy to get caught in that trap. The advertising dollars spent by franchises and business opportunities do not correlate to the relative quality of the company. In fact, I see many downright lousy opportunities featured prominently in the search rankings on Google every day. 

The internet is a great source of information, but it is like a library so knowing where to look is imperative to finding the right data. Answers are easy, knowing what the questions are is the hard part. 

Any company with a deliberate and focused web strategy can rank high in the major search indices for the categories it wishes to dominate. With Pay-Per-Click advertising anyone can side step the whole web optimization strategy and be at the top of any keyword searches that they wish to purchase. The result is that any company, irrespective of their size, quality or history can dominate the search engines. This leaves many people to confuse internet prominence with true success in the marketplace. 

One way to minimize the impact of this is to use the search engines in a different way. Instead of searching for “franchises” on Google for instance, try searching for something that you enjoy like running or baseball. Within the search results you will find companies that cater to these interests and some of these will be business opportunities. When you click through to the website, look for information relevant to franchise or license opportunities. Of course, just because you like an activity doesn’t mean it is the right business for you, (lifestyle considerations are the key) but you will be finding companies that you would normally never see if you typed in “sports franchises” unless you scrolled through to page 46 on the search results. 

Remember that a growing franchise with a brand name that is not recognized in your market yet, often represents the best opportunity. As long as the model has been successfully replicated in other markets multiple times and has experienced leadership, it should be a good bet. And if you are not sure, call our franchise help line at (951) 587-6929. 

Whatever you do in your search, be sure to talk to lots of people. You can only gain the subjective information that will make a difference to you personally by speaking with people who operate the franchise units. The Web is a great resource if you utilize it as a tool, not a road map.

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Dan Brunell

Dan Brunell is the CEO of Dearborn West, LLC, an independent boutique consulting firm that specializes in entrepreneurial talent acquisition and training. Dan has fostered recruiting relationships with over 300 franchise systems throughout North America, created and delivered customized training and coaching programs for global consulting network, and established the best practices and ethical guidelines for this emerging industry space.