More Than One Way To Get What You Want!

Can you believe it? September is here already and before you now it we will be singing and celebrating Yuletide!

Since my last column I have traveled to several States to visit clients e.g., New York, Florida, West Virginia, North Carolina and have had numerous enquiries from others in Pennsylvania, Arizona, Iowa, Georgia plus a few others and a common question has been about franchising.

Several repossession companies have been looking at a way to grow their company by buying into a repossession franchise. Yes, definitely a way to grow, and a quicker way than the normal business way BUT there is a price to pay for that growth.

Getting into franchising has it’s pros and cons and I hope that those companies contemplating this avenue of growth have done their homework.

You can make money for sure in being a franchisee, BUT not as much as you probably would were you building your company through normal business practices and growing it YOUR way.

When you are a franchisee you can only do business as the Franchisor directs you and there is no middle ground. You have to pay to buy into the franchise, you have to pay a monthly fee for all kinds of expenses i.e. insurance and a monthly fee just to be a franchisee.

Buying a franchise means you have to take on the identity of the franchise, do business as they do, meet all their requirements, charge fees in accordance to them and run your company THEIR way. Ultimately you own your company, but so do they! Once you pay the monthly fees associated to the franchise, you will be left with a minimal profit margin … and let me tell you….I have two clients at the moment that are EX-franchisees of a repossession franchise and neither could be dragged back by wild horses to become franchisees again.

You might think that franchising is an easier option, it is for the most part, BUT it’s a more costly way to develop and grow your business, and not necessarily the way you might want to grow your company.

Don’t get me wrong, I am not telling you that getting into a franchise is wrong or not a good idea, that is for you to determine. There are many lucrative franchises out there in many differing industry sectors and I know many business owners that have made a good living and made a great deal of money by being a franchisee. The key is to find a franchise that is lucrative and if it is, be warned it will be expensive to buy.

The other option of course, is to concentrate on growing YOUR own business and there is absolutely no reason as to why you cannot do that. I have been working with one of my clients for just twelve months now and since I began working with them, they have quadrupled their business and YES they are making a good profit too!

Good business is about good planning….you have read this in my column many times and if you continue to read it, I will be saying this forever more. BUT there are no short-cuts – it’s all hard work, lots of time and yes, lots of money, but the rewards are there for you if you do it right!

It’s about working smarter not harder, it’s about being open to change (yes that word again! J ), it’s about reaching beyond the elements of your surroundings be it geography, competitors, clients, equipment etc.

And there is no reason….and I mean NO reason as to why you cannot grow your company…..

Well perhaps there is ONE reason…….YOU!

SUSAN A L MARSTON, MBA
BUSINESS EDITOR
The American Repossessor Online Magazine