More and more the trend nowadays is for a family to come together to make a business work.
Through a survey I did towards the end of 2009 – I’ve found that the growing trend is that people are pushed out of employment and into self-employment for a variety of reasons. Some of these are:
1) Dissatisfaction with the quality of management within their current job
2) No incentive provided in the workplace for any initiative or true involvement in the business (in fact any ideas are squashed before they are even heard), and most of all…
3) No real financial reward (vs the time and effort put into the job) that matches expectation (this includes time in lieu of many hours of overtime above and beyond the call of duty).
So, what does this mean? Well, you will probably be so unhappy that your family around you may well say ‘Hey, why don’t we just do something for ourselves?’. This is why franchising then becomes an attractive idea – because:
- There is a lower risk at start-up (especially with established franchise models with proven statistics and performance from current franchisees)
- Any money invested upfront is going towards business support, set-up etc – and this has all been worked out for you
- Working with people you know and trust (your family) helps to eliminate the worry of employing unreliable staff
Now, of course, we could have a whole discussion on the dangers of going into business with family – but there are more than enough families out there making a go of it than you think!
The top tips for making a family run franchise business work?
- Everyone needs to have their own roles very clear from the outset
- Someone is elected as the Boss (end of story)
- Someone is elected as the Organised One (every business needs one of these) – to whom everyone needs to listen to in order to be efficient and cost effective
- Someone is elected as the Finance Person (every business needs one of these – this maybe outside of the business)
- Everyone needs to be earning a salary (or at least agree what that WILL be in the future…give a date…if there is a consensus to hold off for the first few months)
- A Team meeting needs to happen at least every two weeks to have a talk around the table to clear any issues, or PAT anyone on the back for a job well done
Respect who you are working with and they will respect you – this goes DOUBLE for family run businesses. Mom, Dad, Daughter, Son, Aunty, Uncle….those titles are not relevant during the work day.
Have you had any experiences working in family-run business? Please do let me know about it in the comments box below! I want to hear good and bad stories!
One of the crucial keys to keeping businesses moving and healthy is a trustworthy source of ‘Parent Finance’.
What do I mean by Parent Finance? Well – that’s what I call the ‘back-up-plan-for-when-the-fat-hits-the-fan’ option. Nowadays its hard enough growing up, but trying to afford to buy a house, start a business, grow a family….these things are becoming more and more difficult for each new generation.
Now you could argue that older generations were less materialistic and more realistic about what they could afford and well…credit cards hadn’t been invented. I would definitely agree in part with this – however there is a huge chunk of reality that slaps new generations in the face:
(a) out-of -reach mortgages (home loans),
(b) property prices and
(c) the cost of living being at an all time high.
My worry is that this will adversely affect the sprouting of new businesses and the future entrepreneurs out there. Heck I have a daughter that is 4 months old and my biggest wish is for her to be able to do absolutely anything her heart desires and florish at what she is (will be) good at – what I don’t want is money to stop her being all that she can be.
I have never been one to lend money – but you can see why you need to…when it comes to trying to start and/or grow a business. For franchises – financing is pretty crucial especially for a start-up franchisor. He/she has a lot of work to put in, in order to get his/her model into a healthy franchisable position and be able to support a new growing network of franchisees. What I don’t understand is banks that have dealt with some business owners for years (even in a personal capacity) are not willing to sit down, have a chat mano-e-mano (or womano) and see what is POSSIBLE…as opposed to immediately jumping on to the fence of ‘NO WAY…not possible’.
I dare any bank to revert back to the good old of days of healthy client relationships based on give and take…and most importantly trust. As with disciplining children….parents oddly end up punishing the good kids…because one bad kid messed up. I feel that the ‘loan requirements’ nowadays are a result of years of bureaucracy and once off fraud cases….and have become as stifling as a mole that can’t find away back up to the light.
What are your experiences or thoughts on the subject?
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I have just seen a conversation on Linkedin about the subject of being able to negotiate on Franchise Agreements.
I am of the strong opinion that in the UK, these agreements are not up for negotiation because if the model has been put together ethically and profitably for both parties in the first place there should be no need for negotiation. In my humble opinion it would indicate a weak system and/or franchisor if he/she did negotiate the terms – all franchisees should be on the same terms and be subject to the same compliance issues, advantages, etc. (Of course there are some models that have to have an exception to this – especially mixed models.)
Of course the law is different in other countries (and even in states in the USA) and sometimes the option is not even available. What I do like is that if an agreement is altered for one franchisee – it is made public and everyone will know about it. Unless I have misunderstood that point?
What do you think? I would be interested to know.