•A National Treasure •Tame Your Temper •Diet Mistakes

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FROM EMPLOYMENT TO EMPOWERMENT 3 - Part 1 By Gerri Sefi It’s crucial that your journey to financial and lifestyle freedom include every option in the business environment. Have you considered investing in a franchise? Here are some points to consider: Franchising is often referred to as a turn-key operation, or cookie cutter business methodology - a McDonald’s hamburger looks and tastes the same from Toronto to Sydney. Franchising is not an industry; rather it is a method of distribution initiated by a company wishing to expand by licensing business partners to reproduce their system. There’s a reason that a Tim Horton’s coffee tastes the same at every location! When starting one’s own business, cost is very important but it should not be the only factor to consider. One of the most important challenges will be to minimize the time frame for the business to ramp up, start producing the product or services, attract clients and, of course, commence cash flow. The franchisor has: a. Completed and tested the blueprint for the business. b. A wealth of experience in what has, and what has not, worked. It has already tried, tested, accepted or rejected every aspect of the business. c. Current information on demographics, competition, market strategies and emerging markets. d. Made a commitment to profitability and partners with franchisees to increase revenues. Their future is your future i.e. win-win. Rather than having to go through creation, labour and delivery of the product/service, the franchisee’s focus is to learn the system, build the business plan and implement - all of which is conducted under the guidance and watchful eye of the development team. What are the benefits to buying one? a. A proven method: the franchisor has already developed a model that has been successful for others. Guesswork is eliminated and risk is minimized. b. Name Recognition – consumers prefer familiarity and consistency. For example, when you last stopped for a coffee in a strange town and ordered a coffee at Tim Horton’s, the beverage will be exactly the same as your local brew. The only difference may be cost as that may local market driven. c. Strength in Numbers – you are in business FOR yourself, not BY yourself, By having a network of non-completing other franchisees, you can exchange marketing ideas and receive quick feedback to resolve challenges. d. Improved Buying Power – simple economics – the more you buy, the cheaper the price. Having multiple franchisees buying the same goods will significantly reduce the price. e. Access to capital – it is possible you will need start-up capital. Many franchisors have a financing program already in place for qualified applicants. Or they have financing arrangements with lenders based on the strength of their brand. How much money do you need to buy a franchise on average? There are 4 important numbers to consider: a. The Franchise Fee – this is a one-time payment to the franchisor when the agreement is signed and 28 “LIKE” East Gwillimbury’s Bulletin Magazine on FACEBOOK
covers the license to distribute the product or service, training and support. b. Business Start-Up Expenses – this covers build-out expenses e.g. leasehold improvements, implementation of franchisor design, inventory. c. Business Expenses – this is the amount of cash needed on an-on-going basis to keep the business open e.g. telephone, hydro, staffing. d. Personal Expenses – this is the amount of cash needed to live while the business ramps up. It is generally recommended that the franchisee have 3 months’ living expenses available but this could vary depending on the nature of the business. It’s impossible to give an “average” number because of the wide range of franchises available today in so many differing industries – from coffee to pet grooming to home inspections. The investment can range from $40,000 to $5M … The total cost of starting the franchise will also vary as it will depend on the product or service, and if the business has to lease space, or can be run from a home office. How long does it take to be profitable? This is also a huge variable and will depend on the franchisor, product/service, model and location. Regulations do not allow the franchisor to guarantee earnings, or the time it will take to become profitable. The reason for this is that they cannot know how YOU will actually run the business. However, many franchise companies declare earnings and profit of existing franchisees in their Disclosure Document - this is called an Earnings Claim. and they are only allowed to include this under strict regulatory guidelines. Although this is not a guarantee, it can be seen as an indicator of what profit the business could be capable of achieving. There’s a lot to learn! Part 2 will cover the variety of franchise models, and factors for you to consider in your search. Gerri Sefi, Self-Employment Coach, 416-628-3171 www.theesourcecoach.com/gsefi Plant bulbs in October, giving them time to start rooting before winter. Wayne N. Dargus Financial Advisor 19101 Leslie Street Vince’s Country Market Plaza Sharon, ON L0G 1V0 Office: 905-478-8963 Fax: 905-478-1842 wayne.dargus@edwardjones.com www.edwardjones.com Life Insurance Agent for Edward Jones Insurance Agency TheBulletinMagazine.com October 2011 29
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Page 18 and 19: decorating Why are closets importan
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Page 22 and 23: FIRE PREVENTION WEEK OCTOBER 9-15 F
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Page 30 and 31: in the garden Abkhazi Garden, a Nat
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