Some franchise candidates wish to gain their mark by starting a franchise business from scratch while others prefer to skip the startup and purchase an up-and-running franchise business

Miami, FL -- In today's down economy, with high unemployment, many people are finding themselves out of work and unable to afford the risk involved in starting a new business. Rick Bisio recently spoke to a group of young entrepreneurs in Miami who were considering going into the franchise business. Rick discussed the advantages and disadvantages of buying an existing franchise unit.

Rick Bisio introduced himself to the group and began, "Buying a franchise is less risky than new business start-ups. Today, I'm going to talk about buying a franchise resale. Finding an existing franchise that is part of an established franchise system, one that fulfills your needs and matches your skills in an area where you want to live can take a lot of time and it generally requires a larger investment. If you choose this path to business ownership, it is a good idea to hire a business advisor to help determine the value of the business. Taking over an existing business is like climbing on a moving train; you're already going down the tracks; your task is to figure out how to operate the train before it derails."

Rick went on to discuss the advantages to buying a franchise resale. He explained that a successful existing business already has a customer base and a staff of trained employees. Rick said, "Besides avoiding all the work involved in a new business startup, you will likely be able to assume the existing lease, rather than search for space and wait for the build-out to be accomplished. Another big advantage is you may step right into a positive cash flow situation."

Rick Bisio of FranChoice Consulting is the author of the book, The Educated Franchisee. To learn more about how to identify a great franchise businesses and stacking the deck in your favor, go to http://www.educatedfranchisee.com or buy the book - The Educated Franchisee - on Amazon.com. Rick's books and articles cover everything you need to know about buying a franchise, owning a franchise, franchising skills and requirements, finding the right franchise, recognizing great business opportunities, starting and building your own business and more about business franchises. Read Rick's new blog at http://franchiseeducation.blogspot.com/ for more information.

Contact:

Rick Bisio
FranChoice Consulting
(941) 778 4660 PH
(941) 778 4670 FX
(800) 708 0040 Toll Free
rbisio@franchoice.com
http://www.educatedfranchisee.com

Some franchise candidates want to earn their mark by building a franchise business from scratch. Others opt to skip the startup and purchase an up-and-running franchise business.

If you consider you might be part of the latter group, here is some franchise information to study before you get your heart set on this path:

1. Identifying an existing franchise that is part of a well grounded franchise system, fills your needs, fits your skills, at a price you can afford, in an area where you wish to live can take time. Going concerns that match these criteria don't come along frequently.

2. You commonly have to pay more for a successful existing franchise than you would pay to build the franchise yourself.

3. Whereas franchisors may give you an idea of what it costs to build a franchise in Item 7 of the Franchise Disclosure Document, you often must rely on your own resources to find out the value of an existing franchise. You need to know how to appraise the business, or you need good advisors who are familiar with the business category or even with that franchise system.

4. Taking over an existing business can be a little like climbing on a moving train. The train is already going down the tracks. Your job is to figure out how to drive the train before it derails.

If you come across a suitable franchise, there can be numerous nice advantages.

1. A thriving existing business should already have a proven client base you can rely on once you take over.

2. A flourishing existing business should also have a happy group of employees that know how to lead the day-to-day operations of the business.

3. You should be able to assume the existing lease thereby eliminating the need to look for space and wait for the build-out to be achieved.

4. You may step right into a positive cash flow situation.

Over the years I have worked with a lot of people. Most have an opinion in relation to whether it is more beneficial to pay a premium for a thriving existing business or build a business from scratch. I can tell you that both approaches have their pluses and minuses. Recall that there are no free rides. If the business is flourishing, stable and profitable, it is going to cost more to purchase and you will have a smaller upside. In other words, you are buying cash flow at the expense of growth potential.

On the other hand, if you start your own franchised business it might cost less with an faster learning curve but the ramp up to cash flow break even will be longer.

Which represents the right answer? Well that is for you to decide. It you need advice, feel free to contact us at The Educated Franchise.

Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx

The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. Our objective is -

‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.

To get more franchise information about how to stack the deck in your favor -

Visit our website at www.educatedfranchisee.com or

Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or

Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.

by Rick Bisio - Franchise Consultant

& Author of the Franchise Book -The Educated Franchisee

You've discovered a franchise that appears to be a good fit. You've talked to existing franchisees, read the FDD, and gathered nearly all the franchise information you need. Now it's time for Discovery Day.

Discovery Day constitutes a two-way street organized for you to discover more about the franchisor, and for the franchisor to discover more about you. Not all franchisors hold discovery days, but most do. Discovery Days are generally scheduled at the end of the discovery process and are held at the franchisor's headquarters. This ensures that time can be spent focusing on the franchise information issues that can only be answered face to face.

It's your chance to meet the franchise management team, assess their operation, and complete your franchise education. It's the franchisor's opportunity to make a decision on whether or not you are likely to be a successful franchisee.

Make certain you put your best foot forward and avoid these 6 common pitfalls!

1. Remember to sell yourself.

A top quality franchise is awarded - not sold. This is not like purchasing a car. This is more like a marriage. Both parties are entering into a long term relationship. Franchisors want to be as certain as possible that you will be successful in their franchise system. They want you to strengthen the brand. They want you to be an active learner so you won't need 24/7 support on a long term basis. A franchisor becomes more successful when they only allow high quality franchisees into their system.

2. Have a financial plan

By now, you should have went over your finances in detail with the franchise development person. However, be ready to prove you are financially prepared with the right finances and an understanding regarding the P&L. It shows you are a serious business person. It doesn't mean that you will definitely buy this particular franchise; however, it does mean you can afford to buy this franchise and pay your bills until the business becomes self-sustaining.

3. Dress appropriately

Some candidates consider Discovery Day as a day off work and show up in jeans. If you were the franchisor, would that impress you? The best approach is to dress the way you would if you were already a franchisee in that business and you were going to meet your most important customer. That might be business casual, but it won't be jeans or flip flops. An even better way would be to ask the office administrator how the senior staff dress and then dress the same way.

4. Demonstrate your willingness to learn the system.

Don't try to impress the franchisor with your knowledge of the industry and your thoughts on how to improve the franchise system. Digressing from the system is one of the leading causes of franchise failure. The franchisor will want to hear that you are impressed with their proven system (which you must be, or you wouldn't be interested in buying it!) and that you are willing and able to follow the system.

If you can't express this sincerely, franchising isn't for you. Be sincere with yourself before you get this far in the franchise education process. There are people who cannot follow another person's system. They love making up the rules, taking risks, and are willing to accept the consequences - good or bad. This is fine! But if this describes you, get a hobby that fulfills this need, stay in your day job, or buy an independent business.

5. Be proactive, be prepared.

At a Discovery day you want to be impressed - but you also want to be impressive. Prepare as you would be for a big job interview. By now you've listed your skills and matched them to the skills needed in this franchise (for more information on how to do this, see Chapter 4 of the franchise book The Educated Franchisee). Talk about your past experiences as they relate to running your franchise. Past success is an excellent indicator of future success - franchisors want to hear about your achievements and your expectations for your new business. Ask good questions that show your interest. Be a good listener.

6. Make sure you fit the corporate culture.

If you don't like or trust the franchisor, don't join the system. In addition, if you are not at ease with the franchisees that you have interviewed, don't join the system. Sounds logic but it is important. It could mean that you are a bad fit for this corporate culture. Don't presume you can work around this or that it will get better. Your chances for success are best when you connect with both the franchisors management team and the franchisees.

Avoid these 6 mistakes and use Discovery Day to your advantage. With the correct attitude and some preparation you can make sure Discovery Day ends with you being in the driver's seat!

Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx

The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. Our objective is -

‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.

To get more franchise information about how to stack the deck in your favor -

Visit our website at www.educatedfranchisee.com or

Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or

Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.

Listening to - and Weighing - Advice

by Rick Bisio - Franchise Consultant

& Author of the Franchise Book -The Educated Franchisee

You're in the market to buy a franchise, and you've discovered a concept that you like. You've read the website, went over the marketing materials and examined the Franchise Disclosure Document. In addition, you've talked to the franchisor a number of times. While your spouse may not be completely on board, you've kept him or her in the loop. It's looking pretty good so far.

Advice that Helps

If you are serious about becoming a franchise owner, the next step would be to seek advice from business professionals who possess practical experience in franchising, in the industry that you are looking at and better yet, in the franchise you are considering. The franchisees are a wonderful resource and in most franchise systems they are open and willing to help. An accountant that has experience in this industry and knows the norms regarding profit would be very helpful. A franchise consultant that has years of experience in franchising can provide you with a balanced point of view regarding the opportunity. Finally, a lawyer that specializes in franchising can be helpful in reviewing the structure of the relationship.

Advice that Disorients

Far too often, potential franchisees get so excited about the idea of being a business owner that before they fully realize the risks and rewards, they begin reciting their loosely formed dreams to anyone who will listen. They discuss their business idea with their drinking buddies and even with Great Aunt Edna. Now let's be honest, Great Aunt Edna loves you but she's been out of the working world for 25 years - she does not have an email address and still enjoys watching reruns of Bonanza. There is very little she can do to help you as you seek out more franchise information. There is a lot, however, that she can do to disorient you. Be careful.

How about your buddy who works for the U. S. Postal Service? His lifetime has been spent avoiding risk, maximizing salary, establishing his pension and surviving until retirement. There's nothing wrong with that, but is he able to provide you much guidance? Probably not.

A lot of people have your best interests in mind. But well-intentioned advice from people who simply don't understand business ownership, the industry you are looking at or have practical franchise information can be incredibly disorienting.

Advice that Matters

Spouses usually balance each other in temperament. If you are a go-getter, there's a high chance that your spouse is more conservative. S/he will remind you that the paycheck is nice, and will worry about what will happen if you fail. These are critical conversations to have. But you want to be prepared.

First, gather all the facts and be sure you have a clear idea of what it requires to be successful in the business. How long does it generally take to break even and what level of income would a successful business create. Learn everything you can and involve your spouse every step of the way. If you spouse has a concern, listen to the concern and get as much information on the topic as you can to share with your spouse. These decisions are normally made as a partnership. If you and your spouse decide not to move forward with a business opportunity that you love, won't you feel better knowing you've given him or her all the facts? At least then you know you gave it your best shot.

Here are a few of the most frequent objections you are likely to hear, as well as some facts to combat those perceptions.

1. Don't most small businesses fail?

Several long-term surveys have shown that, contrary to independent start-ups, franchises have a strong success rate. Owning a franchise (vs. starting an independent business) gives you a tremendous head start, including:

· A proven operating system that can predictably create success.

· National marketing programs

· Group buying power

· Training and on-going support

· Manuals, procedures, job descriptions, accounting help, and so much more.

To get more information on this subject go to the Download section of www.educatedfranchisee.com <http://www.educatedfranchisee.com>. There are a few reputable surveys that will give you all the franchise information you need in regard to success rates.

2. Why don't you just change jobs?

Any book you read on wealth creation will tell you that very few people become wealthy by working for other people. Wealth is generally created in three ways - the Stock Market (less than 10% of millionaires created their wealth by investing in the stock market), Real Estate Investment ( 10 - 20% of millionaires created their wealth by investing in real estate), and Business Ownership (70 - 80 % of millionaires created their wealth by building businesses).

Finding another job will not prompt you to the next level. If you are looking to create wealth and a better future for you and your family, business ownership is the best path. Chapter 5 of The Educated Franchisee can help you learn more about how business ownership leads to wealth creation.

3. Perhaps you should think about it some more.

You should not make a decision of this magnitude rushing but you do not want to postpone either. Do your homework, ask all the questions and take notes - then make a yes or no decision in a timely and businesslike fashion. One characteristic of successful business people is their ability to make good business decisions with incomplete information. If you find yourself paralyzed, be careful, business ownership may not be for you. Yes or no, the most important thing is your ability and willingness to make a decisive decision and move forward.

4. What if you fail?

You need to get into business ownership with the knowledge that you may fail. Of course you could also lose your job. There are no guarantees with anything that we do in life. Nobody can guarantee success. All you can do is stack the deck in your favor.

If you know that most franchisees in your chosen system are pleased with their success; that you have similar skill set to successful franchisees; that you are adequately capitalized; that you trust and can follow the franchisor's system; and that you are willing to work hard, you are on your way to being confident that you can succeed.

Before you start to share franchise information with your friends and family make certain you have the facts straight. Educate them. Help them join your team. And if they can't be on your team, maybe that's OK. Everyone likes to give advice, and naturally, everyone gives advice from their point of view - their reference base. As long as you know that, you can appreciate their concern, and not let it overly influence you.

This Article was written by Rick Bisio, a franchise consultant who is dedicated to franchise education. Rick's objective is to create educated franchise buyers that have clearly defined objectives and are able to recognize a great franchise opportunity. Visit the http://www.educatedfranchisee.com for a free monthly newsletter and more information.

Don't Shoot Yourself in the Foot!

by Rick Bisio - Franchise Consultant

& Author of the Franchise Book -The Educated Franchisee

You know you want to have your own business, and you've find out that franchises can represent the safest and fastest path to success. You begin looking into franchise opportunities and find yourself feeling like a kid in a candy store. There are so many franchises out there! Do you want to own a food franchise? Or maybe a franchise that helps seniors stay in their homes? Do you want to build things? Have a staff? Work from home?

Perhaps you already have an idea of what type of franchise you'd like. Or maybe you have no clue. Either way, you are at a critical point. Arriving at good decisions now can spare you a lot of time and heartache by ensuring you only investigate franchises that might be a good fit for you.

The Wrong Path

Let's look at the typical franchise candidate. She's excited about the idea of franchise ownership. Suddenly, she has an increased awareness of small businesses in her city. Everywhere she goes, she realizes that people are working for themselves. She envisions herself in different businesses. She considers what she loves in life, and what kind of business that might guide her to. Hey, she likes clothes and shoes and is constantly organizing them! She really understands the importance of a great closet and thinks that maybe a franchise that builds beautiful closets systems would be fun! She even saw an article that said custom closets are hot! And there isn't a single closet company in town! She decides she'll start her search by looking at closet franchises.

The Ambush

By starting the process this way she has made a grave mistake. Just because she likes clothes, shoes and organizing does not mean that she will be an qualified owner of a cabinet design, manufacturing and installation business. Only because there are no other businesses in the community providing this service, it does not imply that she is positioned for success. Her hobby/passion is for shoes, clothes and organizing. Does she really have a passion for woodworking, managing a staff, managing a marketing program or selling? The purchasing and cash flow aspects of this business are critical. Would she be effective in this area? Following your hobby and passion into business often leads to a loss of the hobby and a challenging business.

Avoiding the Ambush

The franchise investigation beginning place is never external - what does the community want - and it's seldom your hobby. Do not make the mistake of thinking you need to pursue your hobby/passion to be successful. As Rich Dad, Poor Dad states, "Passion is more about what you are being (business owner), than it is about what you are doing (laundry).

The most competent way to focus on the type of franchises that are good for you is to focus on your skills and abilities, as well as what you desire from a business.

Skills and Abilities

Let's imagine our hypothetical franchise prospect has spent the last 20 years managing casual dine restaurants. Over the years she has acquired solid skills when it relates hiring, firing and managing high-turnover employees, creating happy customers in a retail setting, inventory management, scheduling, purchasing perishables and planning. In order to position herself for maximum success she must look for franchises that utilize those skills. To learn more about how to do this read Chapter 4 of The Educated Franchisee.

What You Desire from a Business

There are various things she may also want. Perhaps she wants to have weekends and evenings off for the first time in her life or perhaps she wants a low investment. If this is the case, she may want to get out of the restaurant industry. Maybe she wants a business that will provide her with greater flexibility to spend time with family. Then she will need to consider businesses that have key employees she can trust to manage the business while she is away.

There are a lot of things a person might want from a business. Before looking at franchise businesses, you want to identify both your skills and your desires. Then you need to gather the franchise information required to ensure you find the best business for you. Remember, most people are happiest when they are successful. Prioritize your skills and lifestyle desires to give yourself the highest potential for success.

Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx

The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. Our objective is -

‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.

To get more franchise information about how to stack the deck in your favor -

Visit our website at www.educatedfranchisee.com or

Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or

Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.