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The dream of owning your own business -- being your own boss -- is the dream of thousands of men and women across North America who have entrepreneurial spirit and drive. They want to feel the sense of accomplishment and pride that comes from successfully owning a business. Business ownership has many advantages; most notably the ability to create equity and value in their own business rather than someone else's business. Franchising offers business professionals the opportunity to be in business for themselves, but not by themselves. Owning a business, like many of life's opportunities, has many potential pitfalls along the way. Fortunately, business professionals can significantly reduce the likelihood of falling prey to these risks if they buy a credible franchise, and commit the time and energy necessary to make it prosper. Buying a franchise means buying time tested systems -- operational and marketing systems -- that have been tried and found true by a large number of operators. When you go into a new business on your own, you are solely responsible for establishing the concept, evaluating the market and developing the marketing plan and systems that your business will utilize in the short and long-term. Independence allows you to shape your business as you wish, and alter any element, at any time. When you buy a credible, well-developed franchise, however, all of these elements are already in place. This "head start" allows you to focus on building sales by executing a program that has already been tested by other owners in the franchise. Depending on the franchise you choose, you may also enjoy the benefits of an established name and presence in the marketplace -- an advantage that could otherwise take many years to build on your own. According to a 1991 study by Arthur Andersen & Company, which looked at 366 franchise companies in 60 different industries, nearly 86% of all franchised store operations that had opened in the previous five years were still under the same ownership. In fact, only 3% of those businesses were out of business. On the other hand, according to statistics from the U.S. Small Business Administration from 1978 to 1988, 62.2% of all new non-franchised businesses closed or terminated within the first six years of their operation due to operational failure, bankruptcy, retirement or other reasons. Statistics show that franchises have a far greater chance of success than a stand-alone new business. Keep in mind, however, that your personal aptitudes and resources, the nature of your marketplace and many other factors also play crucial roles in the success of any business -- franchised or independent. "I know what it's like to open a non-franchised business," explains Gary Salomon, President and founder of American Fastsigns, Inc. "When my partner and I got the idea to open the first FASTSIGNS®, we had to figure everything out for ourselves. It seemed that no matter how much we learned, there was something new to figure out every day. It was like trying to herd cats!" While franchising offers many benefits and opportunities, it may not be right for everyone. While it takes a strongly motivated person to own his or her own business, the individual must conform to the recommended -- or even required -- systems, so it's important to take a hard look at yourself to make sure you are a good match for franchising. Success in franchising is a result of both hard work and smart work. Individuals who carefully learn about franchising, research various franchise concepts, and then work hard and smart can find great success as franchise owners. In our 14 years of franchising, we've found great diversity in successful franchisees within the FASTSIGNS network. This diversity is found in both the cultural, ethnic and racial aspects of their background, as well as in their business experience prior to joining FASTSIGNS. We have franchisees within our system who are Hispanic, African-American, Caucasian, Asian and Middle Eastern. Since FASTSIGNS provides custom sign products, communication between various parties is critical. Therefore a great deal of communication, knowledge and comfort with the English language is critical. That appears to be the only clear qualification one must possess. We also have great diversity in the professional backgrounds of franchisees. The spectrum includes professional salespeople and managers, engineers, lawyers, accountants, education administrators -- even ex-race car drivers and tennis instructors populate the FASTSIGNS network. To give a flavor of the type of success various minorities have experienced, we've spotlighted three individuals, each of whom has become a profitable, successful and enthusiastic FASTSIGNS franchisee. Ed Yang and Linda Fong are each of Asian American heritage, and Wendell Haynes is African-American. Ed Yang opened his Sunnyvale, California FASTSIGNS store in 1992, and has done extremely well with his business. His store ranked #21 out of 356 domestic FASTSIGNS stores last year for total gross sales. He explains his experience in choosing to purchase a FASTSIGNS center. "I wanted to own my own business, not only for the financial independence and rewards, but also for the challenges. I wanted to prove myself. Franchising was attractive to me because of the support and proven systems it offered. I felt my risks would be significantly reduced. I looked at different franchises and chose FASTSIGNS because I thought it was a good investment. The computer-aided retail sign industry was a growth industry, plus I was very impressed with the management team at the FASTSIGNS corporate office. Once I bought the business, I attended training, learned from the experiences of other FASTSIGNS owners, and then committed to working very hard to succeed. I'm very pleased with my choice." Salomon and the management team at American Fastsigns, Inc. feel it is critical to offer prospective franchisees as much information as possible. "When choosing a business to own, an individual is making an important decision -- a decision that will affect that person and his or her family for years to come, so we encourage our prospects to weigh all of their options carefully." Among the first criteria to consider is the management team stability and integrity of the franchisor -- you should not consider a franchise whose reputation is questionable. Another issue is the nature of the business itself. Does the type of work you would be doing appeal to you? Can you see yourself in that business for years to come? How does the franchise fit into current trends? How will it be affected by rapidly changing technologies? You should also consider the "personality" of the franchise. Do you feel the leaders in the company share your business philosophies? Are you comfortable with the mood and style of their operation? |
Linda Fong, a FASTSIGNS owner in Oakland, CA, was previously employed in the marketing department of a local utility company, and first became interested in FASTSIGNS because it was a business-to-business opportunity. "I'd worked in the corporate arena and I felt like I could better reach my full potential with a business of my own. I was climbing the corporate ladder, and while I enjoy politics on an even playing field, I did not enjoy corporate politics. I joined my husband in the field of hairdressing for about six years. I enjoyed that experience, but decided that, while I had not cared for being in the corporate world, I missed the business world environment. I looked for a business-to-business opportunity that would allow me to interact with corporate America without having to deal with the politics." Linda was interested in a franchise for the same reasons as many others. "I was swayed with the success rate and proven systems that franchises can offer," she explains. "As I investigated FASTSIGNS, I was impressed. Their communication and follow-up from the corporate office were very professional and helpful. The staff members that I met were consistent in answering similar questions and concerns. The structure appeared sound, and as I spoke with various FASTSIGNS franchisees, I knew this was a network that I wanted to be a part of." Linda continues to explain that the first few years were very challenging. "Even though my husband and I had owned businesses before, I had forgotten how hard it is to learn a new industry. It was a real challenge. While I still work very hard, I can say with confidence that I am very happy to be a FASTSIGNS owner." Linda's store has been open since 1995. She has consistently exceeded her sales forecast each year since. "When prospective franchisees are considering the purchase of a FASTSIGNS, we are committed to helping them get all the information they need about FASTSIGNS in order for them to make the best decision for their future," explains Salomon. "We also feel an obligation to look for those characteristics that we feel identify prospects who will be successful in this business. We aren't doing anyone any favors if we approve them to buy a FASTSIGNS and accept their franchise fee if we aren't fully confident they will be successful." Some of the many factors that are looked at when considering potential franchisees are work experience, personality traits and financial stability. "While a background in the sign industry is helpful, it is not required. Experience in sales, marketing and management, however, can be very valuable," Salomon continues. "It's infinitely easier to teach a person how to make a sign than it is to teach him or her how to be a good manager or salesperson." There are distinct personal skills and traits that are common among the FASTSIGNS owners who are most successful. "We have created a profile of these characteristics. Prospective franchisees are compared against this profile to determine the likelihood of their success in this industry," Salomon continues. "While we would never deny someone the opportunity to own a FASTSIGNS based solely on this comparison, we use this information to identify ways to increase each person's potential for success in this business. We might recommend that their first employee be someone with strong sales skills if we feel they are weak in that area. In other cases, we might recommend training in management skills that supplements our in-house training." The third factor that is considered is the individual's financial stability. "After opening over 425 stores in the past 13 years, we have a pretty good idea of how much money it takes to operate and market a new FASTSIGNS store until it is generating profits. We want to make sure that we communicate this clearly and unequivocally to our prospective franchisees and that they have the financial backing and foundation necessary to support those expectations," explains Salomon. At FASTSIGNS, we have just one goal," explains Salomon. "That is to help our franchisees succeed in building and maintaining high sales volumes and maximizing their profit potential. That process begins the day we meet the franchisee and continues as long as they are FASTSIGNS owners. Our owners are backed by the industry's most respected name, the most thoroughly researched and proven operating system, and the most all-encompassing program of professional training and marketing support in the computer-aided retail sign industry." Wendell Haynes had extensive experience in selling investment services. In 1998, he made the decision to buy a FASTSIGNS. In his second year of operation, he is showing triple digit increases in sales revenue. "I had worked for large corporations and sold services to large institutions, but wanted the opportunity to have a little more control over the direction of my business," Haynes explains. "I first considered buying an existing business, but then decided to look into franchising. A franchise could offer the security of existing systems that I wanted, but I could also feel I had control of the business from the beginning without having to 'undo' any existing problems." Haynes looked for a business in which he could leverage both his computer skills and sales experience. He also had a somewhat unique factor to consider. "I knew I wanted my business to be in Manhattan. It's a special market and I had to look at each business concept in relation to the characteristics of this dense business market. I also was looking for a business for which there was a clear demand - and a demand that would not go away in the future. I was intrigued by the fact that FASTSIGNS uses state-of-the-art technology to create a product that has been around in some form or fashion for centuries. People will always need signs, and I liked the idea of using modern technology to offer them better signs." Haynes also advises new franchise owners not to be frightened by the competition. "If you choose a product for which there is sufficient demand, the competition should not be a problem," he explains. "This doesn't mean that you can just show up at work everyday and that the customers will somehow find you. You have to be willing to go out and get your own customers -- or hire someone who will." Haynes offers more advice to those considering the purchase of a franchise. "Know your market, find a good location and don't rush. Take your time and do your homework. Talk to lots of the other franchisees in the system. They can give you a great picture of what the business is really like, what kind of support you can expect from the franchisor, and how much you can reasonably expect to make. If you like what you hear from the franchisees, and you feel good about your visit to the corporate headquarters, you probably have found a winner." As these three people have indicated, success in any franchise depends on the following characteristics; doing the homework to find out which franchise best meets your needs, knowing the market in your area for such a product, and your willingness to commit yourself to success. These traits and abilities are common to all ethnic groups. FASTSIGNS is committed to the success of all its franchise owners. |