Is Franchising The Answer?
Dave explains to Matt what he'd do if he were looking to open up a small business, rather than just jumping into a franchise.
QUESTION: Matt wants to open a business, but hasn’t been able to jump out there. What are Dave’s thoughts on franchising a dry cleaner?
ANSWER: A franchise offers 2 things; a system for marketing and running the business that is proven, and a national brand. I’m not against franchising in some situations. If I were opening a dry cleaner, I’d study some dry cleaning guys that I’m not in competition with, maybe even go to work for one. Try to find a business that is for sale and ask if you can manage it for him for a percentage of profits, and buy it from him later. You can manage it and learn the business, because right now you are clueless about it. In your case, don’t go with a franchise. Look for something that you enjoy doing, rather than something that is a money machine or low risk.