On The Beyond Business Podcast, I talked with Katherine Martín-Fisher about buying a franchise versus starting a business from scratch, and what separates someone who dreams about owning a business from someone who really wants it. We covered the traits of a good franchise owner, why leadership counts for more than industry experience, tracking your progress from day one, validating the numbers with owners already in the business, the partnership between you and the franchise company, and the first question to ask yourself.
In this episode
- Introductions
- How I got into franchising
- A franchise vs starting from scratch
- Dreaming about it vs really wanting it
- What makes a good franchise owner
- Looking in the mirror before looking at the business
- Leadership vs industry experience
- Tracking your progress from day one
- The financial side, and validating the numbers
- The first year, and dealing with uncertainty
- The franchise agreement and the partnership
- The first question to ask yourself
What’s the difference between dreaming about owning a business and really wanting it?
Dreaming about it is easy. Really wanting it shows up in what you do when nobody’s watching: the practice, and the heart and soul you put in. I can’t make you want it. That desire is the big difference between people who should own a franchise and people who should think about it a little longer.
I’m a big sports fan, and coaches will tell you it’s not what people see when you’re performing. It’s what they don’t see when you’re not performing. Everybody’s a fan when the team looks great. The question is what you’re doing behind the scenes, and whether you still want it then.
That’s why the first thing I’d have you ask yourself is why you’d want to do this in the first place. I promise you there will be headaches and challenges. Do you want to win, and will it leave you feeling fulfilled? I talked more about knowing your why on C-Suite Secrets.
“I think a lot of people dream about owning their own business. And, you know, it’s one thing to dream about it. It’s another thing to really want it.”
Not ready to talk yet?
Take the QuizWhat personality traits make a good franchise owner?
Someone who wants to be out with people, communicating with them and helping them, whether that’s in a health care setting or contributing to the community. The financial side matters when you’re making an investment, but it can’t just be about chasing a dollar. People see right through that. Helping people grow has to be part of your DNA.
Before you look at any business, look inward. Ask yourself what you want your life to look like, and how you can build something bigger than yourself as one person.
When you do things for the right reason and the right way, it comes back around and makes the people around you better. To me, that’s what we’re here for: to pay it forward in a better way than what’s been passed on to us.
“It’s about helping people develop.”
Do you need industry experience to own a franchise?
No. Specific experience is valuable, but leadership counts for more. A good leader is adaptable, can read the room, and sees what has to happen for something to work. Where they don’t have the specific experience, they know how to reach out to people who do. That’s what fills in the blanks when things don’t go to plan.
When I ran brands in the corporate world at Maytag, Toro and Electrolux, I didn’t have the engineering background. But I knew how to work with engineers and what mattered to them. I knew what mattered to my CFO, and I knew what the consumer needed. Leadership is pulling all of that together.
Having the specific experience is one thing. But what happens when A doesn’t go to B, and it goes to C or D instead? Leadership is how you fill in the blanks, regroup when you need to, and get the right people in place to make it happen.
“They can read the room, so to speak, and they can see what’s important, what needs to happen in order for something to be successful.”
Is a franchise a partnership with the franchise company?
Yes. You own the business in your area, and they own the brand. They’re looking for partners just like you are, and it has to be a win for both, or it isn’t a win for anybody. The franchise agreement protects the brand, and you want it that way, because it protects your brand in your area too.
Starting on your own, you don’t have that partner. With a franchise, you’re often executing a plan the company has already put in place, and the other owners become your colleagues. I talked more about what that looks like on Get Business Smart.
It’s not about just getting you into a business. I’ll hold you back when I think you need to dig deeper and ask more questions, because I want your eyes wide open, and the franchise world is great for having specific information that helps you validate the opportunity.
“You own the business in the area that you’re in. They own the brand.”
Key takeaways
- I can’t make you want it, and wanting it is the big difference between people who should own a business and people who should think about it a little longer.
- Plenty of great businesses aren’t the right ones for you, so look in the mirror before you look at the business.
- Leadership counts for more than specific industry experience, because a good leader can read the room and reach out to people who have the experience they don’t.
- The companies share their numbers, and I want you to validate them by talking with owners already in the business, including ones who are new or struggling.
- A franchise is a partnership: you own the business in your area, they own the brand, and it has to be a win for both.
- Before anything else, ask yourself why you’d want to do this in the first place and what you want your life to look like.
Questions people ask after this one
You never pay me. The franchise brands do, and only if you end up buying one.
Then you decide not to do it. That is a legitimate outcome and it happens regularly.
Two to four, chosen because they fit what you told me. Enough to compare, few enough to go deep.
This conversation first aired on The Beyond Business Podcast. Listen on The Beyond Business Podcast
