1 Business Boot Camp: Putting Veterans in Business.
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Transcript of 1 Business Boot Camp: Putting Veterans in Business.
1
Business Boot Camp: Putting Veterans in Business
Jim Gleason, CBCFranchise Consultant
• Indiana University – BS in Marketing
• Butler University – Masters Degree
• 30+ years experience in companies ranging from small family owned businesses to Fortune 500 companies
• Certified Business Coach
• Former Board Member Indiana Christian Businessmen’s Committee
• 20 years experience in business ownership
• Former Board member of the Exchange Club of Speedway
Who is FranNet?
• Over 26 years in business• We have worked with SBA, SCORE, and
the ASBDC. Only consulting firm with those relationships.
• Locally based: we have a representative in your area
• Veterans nearly 10% of 2013 FranNet placements
• FREE TO YOU
We’re not talking a job change.
We’re talking a life change.
Why Own Your Own Business?
In other words,
what do you want to
BE?
Why Own Your Own Business?
What is it for you?
What Do You Want to BE?
What is Franchising?
The creation of a distribution channel to build brand identity and attain market dominance…
QUICKLY!
Franchise is…
A license to use:• Name and trademarks• Products• Business Systems
In exchange for:• Initial franchise fee• Ongoing royalties
Government Disclosure: FDD
• Franchisor Info– Time in business– Business experience– Bankruptcies– Litigation
• Costs– Total Investment
• Franchise fee• Other fees
(Adv, Equip,Supplies, Insurance, etc.)• Working capital
– Royalties
• Franchise Contract
Government Disclosure: FDD
• Obligations for Franchisor & Franchisees• Territory• Listing and Contact Info For:
• Current franchisees• Past franchisees
• Earnings Claims• Financial Statements• Manager Policy• Renewal, Termination & Transfer Policies
VetFran Program
• Founded in 1991 to support veterans transitioning back into civilian life after the Gulf War.
• More than 400 IFA member companies participate– Offer financial incentives, training, and mentoring for Vets interested in
starting their own franchise business
• “Operation Enduring Opportunity”– Campaign to recruit and hire as franchise owners 75,000 Veterans and
their spouses and 5,000 Wounded Warriors– The IFA has partnered with the White House Joining Forces Initiative,
the SBA, and The US Chamber of Commerce in this unprecedented recruitment effort
– The program offers tax credits to employers who hire unemployed Vets
• “Help Veterans Own Franchising Act” (HVOF)– Establishes a tax credit for Vets to become franchise owners
– Allows a tax credit of 25% of the Franchise Fee to offset start-up costs
• 1 in 7 franchises are owned by Vets– 66,000 Veteran owned franchises in the US provide 815,000 American jobs and
generate $41B in GDP
• Veteran success in Franchising is driven by:– Outstanding leadership and teamwork skills– Ability to implement and execute systems– Franchises provide extensive training– Franchises offer on-going business support
• More information is available on the IFA’s VetFran Directory– http://www.franchise.org/Veteran-Franchise.aspx.
VetFran Program
• Business ownership is one of the hardest, but most rewarding thing you’ll do.
• You have to really want it. However, as a Vet, military discipline and focus help immeasurably.
• One in seven franchises in the U.S. is owned by a veteran.
Is Franchising Right for You?
• What do franchisors look for in a prospective franchisee?• Can you follow a system?
• Are you willing to work long hours?• Have you thoroughly researched the business?• Do you know the market for your business?• Do your skills match the franchise needs?• Can you afford to buy & operate the business?• Can you manage people?• Are you passionate??
Do a Self Assessment
Is Franchising Right for You?
Franchising Fact #1:
FACT: • Over 3,100 different
franchise companies • In more than 80 industries • With over 900,000
operating units
Franchising Fact #2:
FACT:
Average Initial Investment Range Percentage
Under $50,000 13%
$50,001 to $100,000 17%
$100,001 to $250,000 28%
$250,001 to $500,000 23%
Over $500,000 18%
Financing Facts:
How Much Do I Need?
Typically, 25-30% of the total investment will be your money.
Financing is relatively easy to get for 70-75% of the total investment including working capital.
Financing Facts:
Sources:• Personal savings• Friends, relatives or partner• Home equity line of credit• Financial Institutions• Seller financing – resale• 401K, IRA, etc.
Franchising Fact #3:
FACT:
There is no automatic correlation between the cost of the franchise and the potential return.
Franchising Fact #4:
FACT:
Service businesses require far less capital investments and frequently yield higher returns.
The Benefits of Franchising
Proven, systematic approach to starting
and staying in business– Experience– Simplicity– Initial Training & Ongoing Support– Name Recognition– Sales, Marketing & Operational
Systems– Culture of Teamwork
Franchising Benefits
You’re in business for yourself,
but not by yourself.
Why Own a Franchise?
If you pick a franchise that is a great fit for you,
it is:
– Vehicle that can get you to your destination while meeting your lifestyle and financial goals
– Way to reduce risk
How Do You Find a Business That is a Great Fit?
Separate the function of the business, from the function of the business owner!
Determine Your Business Model
25
Identify your Financial & Lifestyle Goals
5 Years
10 Years
20 Years
What Are Your Transferable Business Skills?
CustomerService
MarketingManagement
Sales
Your Business Model
Types of Customers
Service or Product
New or Established Industry
Room for Growth
Other Items?
Employees
Budget
Business Environment
Full or Part-timeHours
Number of Units
Business Preferences
Business Characteristics
• These are preferences
• It will not be perfect
• Expect some of your preferences to conflict
• Be clear about your few “must haves” versus your many “nice to haves”
Finding a Great Fit
Match your business model with franchisors who are looking for people with your characteristics, attributes, goals and business preferences.
Plan Your Strategy
When you are thinking about being a business owner, you should develop:
• Short-term strategy
• Long-term strategy
• Exit (Destination) strategy
Conducting Your Research
We'll coach you through a 4 Step Research Plan and you’ll determine if one of the franchises is great fit for you.
We do not sell franchises.
Professional Advisors
AdAdditional Resources You Should Use
AccountantFranchise Attorney
Business Selection Criteria
The Science of Psychology
FranNet Means Business
Thank you for your service to our country.
Allow us to be of service to you.
Questions?