If given the chance, I’m sure you know of someone in business you want to say, “you just don’t get it, do you?” too.
What usually happens though is that what’s said behind closed doors is instead, “they just don’t get it, do they?”.
A case in point was today. I spent it working with a friend and colleague of mine, who owns a franchise business reliant on independent practitioners. Together with her business development colleague, we went over a number of scenarios to improve the booking rates of her practice. But the one phrase that was repeated over and over again was “they just don’t get it” in respect to their franchise comrades.
The main reason for this was due to the level of frustration directed at the independent practitioners who were generally not deemed to be business savvy. It was agreed it’s because they were/are not taught about the principles of business when at practitioner school and nor do they have someone around them, in their “A” team, that can assist with the transition either.
Typical eMyth stuff!
That said, it does not help the business owner who is trying to build a business based on the practitioners skill set.
So what do you do?
Do you interview many of them, in the hope that a select view will drop out of the mix as the ideal type of candidates or do you invest in training all of them to be better at the business of their craft? Regardless of choice, the fear is they will learn what they have to and before too long, may decide to leave and go out on their own, leaving you, the business owner, right back where you started.
So what other option do you have?
Maybe it needs to be built more on a Cooperative model? Or even a Legal Practice model?
There has to be some way for the practitioners to comprehend the commercial realities along with their own need to earn.
Given that in this particular scenario, the franchise model has already been cast, the franchisor is going to have to work really hard to bring the franchisees up to speed or otherwise the whole thing could fall over. And that won’t do anyone any good.
Would the same decisions be made today, based on what they now know?
I suspect not…
Picture this… you’ve been running your home-based business for 16 years when you decide in 2007 that it could be a successful model for other entrepreneur mothers to follow.
After extensive planning and roughly $65,000 in consulting and legal fees, you sell your first franchise that year.
Within three months, it had failed.
This is the basis of one entrepreneurial mothers true story. To read what happened, and how she turned it around, click here. Enjoy!
Podcast: Denise Hall talking Starting vs Buying a Business – businesssuccessradio.com.au by Denise Hall on Mixcloud
I know. The idea of owning your own business is becoming a more attractive and popular option for a lot of Australian women.
The idea of setting your own hours, having unlimited income potential and working in an area you are passionate about to bring value to the marketplace is an appealing alternative to an office environment, for a lot of individuals. Women are driven and great at multi-tasking, all great skills for a potential business owner.
Statistically speaking though, most businesses fail within the first two years. Although there are many reasons why this is the case, a few common denominators exist around the initial set up and structure of the business. It’s not enough to have a good idea. Or, to even be good at what you do. This alone doesn’t necessarily translate to success at owning and managing your own business.
Getting your business off and running takes a little capital and a solid plan of action. Researching your potential market along with establishing the legalities can be a headache in and of itself. Once you make a start, seeking expert advice, joining a trade association, and networking with your local chamber of commerce can be helpful launching steps.
In order to increase your potential success rate, you might consider some alternative options to starting a business from scratch. Franchises, Direct Sales, or purchasing an already existing business are viable options with a little less risk, or at least a different risk, involved.
You can find information about starting a franchise in Australia at www.franchisebusiness.com.au. You might be surprised at some of the great opportunities you will find. There are hundreds of franchises to choose from in many different arenas. The benefits of a franchise are that there is already name recognition in the marketplace along with a proven track record and system for success. The downside can be the amount of capital necessary to get a franchise on its feet. Also, it might take a while before you realise the profits you are after. Depending on the franchise, expect at least two years before you see a true return on your investment.
For all of the reasons entrepreneurial women like to own their own businesses, network marketing, or direct sales, can be a great option. Start-up costs are typically very low and you have the benefit of setting your own pace for your business. Oftentimes, you can build it with discretionary time as you continue in your normal job. This provides more stability and less risk to the woman who is after more financial stability for her family. The downside to a business like this is that you must be highly self-motivated. All of the good products in the world won’t sell themselves if you are unwilling to get out there and push them. Also, many people avoid this type of business because you typically need to start up with friends and family or someone in your close network. You can check out the Australian Direct Selling Association’s website for lists of reputable companies and information about direct sales.
Buying an Existing Business:
This option is really great if you know what type of business you are passionate about, have some capital, and would like to have an already established client base or revenue stream. The potential to grow it or expand to new areas is appealing. The downside is that you might inherit existing problems with personnel, debt, or organisational structure. You also lose the chance to start from scratch and establish your own vision and mission. However, these can be developed over time as you implement changes. The Australian government lists some other things to consider on their website before purchasing an already existing business.
All in all, women have what it takes to be successful in business. Eliminating all risk is unavoidable but if you are driven and passionate about your product, it might be worth the plunge.
Kayla Wilson, Editor of creditcarecompare.com.au
The Credit Letter Blog is dedicated to giving individuals financial advice in every area of life from credit cards to business and family.