Entrepreneurs continue to take underperforming, existing franchises for sale and turn them into healthy businesses. You can, too.
Why on earth would you want to give up a high-paying job to purchase a franchise that isn’t performing well, Mr. or Ms. “White-Collar” employee? Simply put, you can abandon the often overlooked but ever-present shackles that come with working for someone else, unleash your about-to-burst entrepreneurial drive and finally direct your energy into creating a fulfilling life on your own terms, with the potential to make good money and a comfortable retirement.
Many others have come before you and have done exactly that, taking misspent franchise opportunities in which former owners neglected to respect the system of operations or fell asleep at the marketing wheel and turning those businesses around to great success.
Top 5 Reasons to Buy an Existing Franchise Opportunity for Sale:
1. Head Start: You’re buying an existing location with a book of business when you purchase. No matter how small it may be, there is already cash flow coming through the business. It gives you something to build on right off the bat.
2. More Direct Benefit to You: You have a good paying job, but often that requires a lot of time and dedication to that job whereas the same time and dedication you can put into your franchise and reap the rewards yourself instead of a corporate entity. As a franchise owner, you have the ability to enjoy all the perks of your labor instead of it going up the chain to some superior officer.
3. Define Your Life: Freedom to make your own schedule, time for vacations and a good life – on the condition that you put in the work, market the business well and follow the system. You will have pride knowing it’s your business and you won’t have to start from scratch.
4. Embraced by the locals: Your community involvement makes you an valued part of your business community and when you purchase an existing franchise, you already have a track-record of servicing that community.
5. Underperforming = savings: Your savings can come in the form of an asking price that can be less than that of a new franchise.
Kenny Clark, owner of Minuteman Press in McKinney, Texas, has his preference firmly rooted in the fact that he took advantage of an existing business that was failing and he was able to take that situation, apply firmly the franchisor’s winning system in combination with his own drive and business savvy to grow a rewarding franchise operation for himself and his community. Kenny sheds light on the equation from experience, sharing, “In my own personal experience, I am a fan of buying existing businesses and I’m glad I didn’t shy away from one that wasn’t thriving when I took over. You are able to start with an existing customer base that helps reduce the burden of the capital required. While the business may not be self-sufficient, every dollar that is brought was one less dollar that comes out of my pocket.
Here are 4 of Kenny Clark’s notable reasons as a successful new owner of an existing business that was underperforming prior to his ownership:
“Pros” to buying an existing business:
- You may already be in a great location
- Employees and suppliers are established
- Equipment is already installed
- Inventory is in place.
Kenny Clark represents a population of determined, intelligent entrepreneurs savvy enough to snatch-up and benefit from an underperforming franchise-for-sale opportunity, utilizing both their own hard-earned business skills and the concentrated force of the franchisor’s proven system of operations, training and support. Upon that foundation, he took a business mismanaged by its previous owner and rebuilt it into one that generates the success for which he had hoped.
“Our doubts are traitors, and make us lose the good we oft might win, by fearing to attempt.” – William Shakespeare
Jim Galasso, Minuteman Press International Regional Vice President for NY/NJ/CT has no doubt that you can, and should, consider leaving your high-paying job for the right existing franchise opportunity, even one that has been underperforming.
Jim shares, “There are many different reasons why businesses underperform.
Some of the top current stores in our franchise system were previously owned by someone that was either unmotivated or unable to build it to where the new person has taken it to great heights.”
Jim Galasso shares 3 insights on the reality of underperforming franchises and how you can use them to your advantage:
1. See what happens when drive and a proven system are combined: I would say the number one reason contributing to franchise failure rates (or underperformance) is the lack of marketing and promotion on the part of the franchisee. A Minuteman Press franchise or just about any other successful franchise company has a proven formula for success. Those that follow it, are more likely to succeed than those that don’t.
2. Take the goodwill and build upon it: Many times the underperforming owner, at the very least, provided enough quality and serviced to the customers they did have, which can then be adopted and nurtured by the new more motivated, focused franchisee. So someone taking over this type of business may have a good solid base to start from.
3. Some unexpected costs may be covered: There could be a good chance the business may even be covering some of the overhead costs. So, by just following the Minuteman system, a new person with a new positive attitude could have a great opportunity with a big head start.
Jim adds, “Today, working for somebody else could be a higher risk than investing in yourself. Big companies are experiencing higher layoffs all the time. Sometimes technology is substituting for labor, and as one gets higher in age and also higher on the pay scale these smart, hardworking, dedicated people are the first to go. For the highly educated youth, no company wants to pay them what they may be worth, since they are not proven yet.”
“Safe is risky.” – Seth Godin
It is true that stagnation (or comfort zones) can give us the illusion that we are safe in business, especially as an employee working hard for what is essentially someone else’s gain. Far better it is to strike out on your own, after you have done your due diligence and found a franchisor whose training and support is unmatched. This is true whether your best opportunity is a new franchise or one that is already up and running, but never think that an underperforming franchise cannot be turned around towards success. It has been done but it does require a lot of hard work and a willingness to stick to the game plan.
Why should you leave a high-paying job for the chance to buy a struggling franchise? It can be your proverbial “golden opportunity”
Buying an existing franchise, even one that has not been brought to its full potential by its previous owner can save time, money and prove to be your own golden opportunity to break the shackles of corporate employment that may pay well, but also bind you to an unsteady future, even as a well-paid, manager or executive. Remember, the current revenue stream for an existing franchise (even if it is limited) has value and can give you a boost as the owner of a location that is already equipped and in operation.
You simply must find a reputable franchisor, however, and you will find them to be of enormous help in terms of financing and assisting as you set the ship straight again. As Jim Galasso comments, “Although we don’t have a crystal ball to see who will be successful or not, there is no limitation on where a person might be able to take their own business and the chances of getting laid off or fired are zero. So if a person is currently working hard to grow someone else’s company, who knows what they could do with their own, taking a franchise that has not performed well and turning it around into a booming business.
Frank Brown, owner of Minuteman Press in Minneapolis, Minnesota, knows that franchise opportunities arise for a variety of reasons and franchise failure rates can come from owners not utilizing training and the proven system of operations. He speaks from experience when he says, “Buying an existing franchise is a very smart move, even if it is underperforming. If a store is under-performing, then the owners need some assistance on how to increase sales and a real marketing plan.”
Frank continues, “[Focus on] Marketing, Marketing, Marketing! Bring a good marketing plan to the business by studying what the current owners are currently doing and not doing. Minuteman Press Int’l can help work on a good strategy to grow the business. In the end the truth be told, it is your own personal network or networks you can join that will lead to success. Join Chambers of Commerce, business networking groups, and volunteer to be on boards of non-profits. Otherwise, find someone who is already selling printing and can bring clients with them or is networked.”
He concludes, “Many times, I’ve seen it turn out to be a monumentally positive decision that has transformed people’s lives.”
To learn more about joining the #1 rated Minuteman Press franchise family, call us at 1-800-645-3006 or simply fill out the contact form on this page.