This post is not meant to be read by anyone who sells a franchise. This includes franchise brokers, franchise matchmakers, and franchise consultants.
I set it to private, so if you’re able to read it, you’re probably(hopefully) not a franchise seller.
A Popular Franchise Question
This question probably comes in at number #2 or #3 on my most-asked franchise question list, and rightly so. After all, if you’re going to invest $150k or more into a franchise business of your own, it’s certainly a fair question to ask. ROI and all that jazz. But, before I go into the answer, I have a question for you.
How would you like me to answer the money question above?
A. Like someone who sells franchises?
B. Like someone who doesn’t sell franchises?
I’ll wait for your answer. Tapping…pencil tapping…
Well? Is it going to be A?
Great! You must want the truth! And, that means that you don’t want me to *Gini my answer?
*Gini Dietrich is a friend of mine, her website is Spin Sucks, and so is her upcoming hardcover book.
Click Gini up above to see her website. And more. She rocks!
(This is the part that shouldn’t be seen by the characters named on top of this post.)
How Long Is It Until You Make Money?
The answer to this popular franchise question: A while.
When you actually do open your franchise up, you’ll certainly have money coming in. But, it can’t go into your pocket right away. You’re not going to “make” money. Yet. It needs to go back into the business. You’ll have expenses to cover…things like rent, inventory, advertising, and utilities. And don’t forget your loan payment. And, franchise royalties.
Your goal needs to be to break-even. That’s the point in which your revenue pays your business expenses. Only then can you start thinking about drawing a salary.
So, Can You Handle That Answer?
Can you wait for a while…to make money?
Or, do you have to replace your income within the first year?
If you need to make money fast, a start-up franchise isn’t the way to go. I don’t care what anyone tells you.
Great franchise salespeople, and their close cousins, The Brokers and Consultants, will tell you the truth about starting a franchise.
And the cool things is, since I don’t sell or broker franchises…since I’m not paid a brokerage fee, I get to tell you everything.
If you’d like to know the difference between what I do…how I help prospective franchise owners make safe and super-informed decisions,versus what a broker or consultant does, this short article should do the trick.
And, if you’d like me to send you free updates about franchise ownership, including a lot of facts about franchising that you may not know, just type your email in the box below.
I’d love to teach you everything I know about franchising.
How to Use a Franchise Opportunity Website
The 10 Commandments of Franchise Research
What You Need To Know About Franchise Consultants/Brokers