Begin With the End In Mind
When Stephen Covey published his now famous book, The Seven Habits of Highly Effective People, the second habit quickly entered the lexicon of the business world. “Begin with the End in Mind” is a directive that is appropriate when planning a task, creating a marketing plan or strategizing the expansion of a business. If you are thinking of exploring franchise ownership, this particular ‘habit’ is not just important – it is essential! Successful entrepreneurs tend to share a common story: they had a vision before they started their business as to where the business would eventually take them and what it would ultimately become. They understood where they would be at the start of the business and what the reward would be as their business achieved the targeted level of success.
For the successful business owner, the vision is more than just a goal. It is a driving force.
We accept the logic of “beginning with the end in mind” and yet, when it comes to finding the right franchise, people tend to get quickly forget this discipline. The franchise industry is vast and loaded with concepts that appeal to people’s obvious passions, making it easy to focus on what appears to be the ‘fun’ factor and the easy ‘fit’, while losing sight of their personal reasons for owning a business in the first place. Examples of industries that have a high degree of appeal for people based on their passions:
Fitness and Health
Children Oriented
Pet-Oriented
Coffee
Ice Cream
There are excellent franchise opportunities operating in all of these categories. Yet just because you love ice cream doesn’t mean you would enjoy owning an ice cream store, or even have the right set of skills to manage that kind of enterprise. More importantly, would owning an ice cream store bring you the financial rewards and the quality of life that you are looking for?
Too often people who are looking for a franchise neglect to begin with the end in mind, opting instead to direct their energy towards opportunities that match their personal areas of interest. A business looks “easier” or like it would be more “fun” because the person already knows something about the business’s product or service and/or is comfortable with its customers.
If you only focus on what the business is or does, you risk ending up owning a business that initially fuels your interest and enthusiasm but quickly evolves into something else entirely. By the end of that first year, you may discover that the business model itself is not a good fit for your skills, or that your day-to-day responsibilities have little to do with the ‘passion’ that led you to make this choice. This happens a lot in the franchise world, resulting in under-performing owners who realize too late that they made a wrong choice because they paid more attention to what the business did (something they related to) and not as much attention to what the business model would do for them as a business owner.
As you begin your search for a franchise, ask yourself this: “Which question is more important to me…
What the business is? Or … What the business will do for me and allow me to do?”
Try this exercise as you begin your franchise search and acquisition. Write down what the end results will be when you find the ideal business. What will your role be in the business? How much time will you need to commit to the business in the short term? As it matures? How will it improve both your personal and professional life? Think big and be specific. If you want to send your children to private school, write it down. If you wish to take Thursdays off to play golf, include it. If you’ve dreamed about volunteering in your community, imagine how your career or business will allow you to achieve that goal. Focus on the destination rather than the vehicle you use to get there.
Here are a few samples of what people have written in response to this exercise prior to beginning their search for the right franchise opportunity. Some offer a great deal about their long-term goals and dreams. Others focus more on their immediate objectives as these relate to their family or their free time. The common denominator is that these individuals took the time to be thoughtful about what being a business owner will do for them and will allow them to do.
(Please forgive grammar errors or misspellings. These comments are being shared exactly as they were written)
*My biggest goal is ownership and the potential to earn an income past what any other company could ever possibly pay me. I have had good success so far with my professional career and I believe it’s time to step out on my own. I believe I have a much better future when I have control of it instead of some “big wigs” making the decisions for me and where a company goes. I believe I was born for ownership because I have been a leader my whole life. I was the kid who organized all the neighborhood games and set all the rules. I was the captain of almost all my hockey and baseball teams. Then in my professional career I have taken sites that were making very small profits to make large profits within less than a year both times. I expect nothing but the best from myself and those that work with me and I never accept failure. I also know what it takes to make a company succeed and I know the hard work involved and the steps necessary to grow a company from the ground up. Like my dad told me, I was born to lead.
*My ultimate personal goal is to have financial freedom. I want absolute zero debt by the time I am 40 years old, which is 9 years from now. I plan to have my house and cars paid off and to have a minimum of $200,000 towards my portfolio of other investments and retirement plans. On top of all this, what motivates me the most is that I want to provide a life to my children that I could have only possibly dreamed of. I know that is a trendy line, but it couldn’t be closer to the truth for me. For me to be able to send them to private school or any top provider of education and also be able to send them to any college they choose would mean the world to me. I want to give my kids a good start when they finally venture into the world on their own.
*Our time frame to exit the business would be within the next 10 years and within 5 years begin a diminishing involvement strategy.
*We desire to build significant cash value in the business upon exiting. That cash value would be in excess of $250,000.
*I would like to work hard, but have little weekend work or travel involved. I would like to have a very few employees, little overhead, inventory, and work out of my house or at a small office.
*To support my family in all financial respects, to regain control of my personal and financial well-being and to never stop working again unless it is voluntary and my choice alone.
*To have independent control (or as independent as possible) over both my work and financial life. I want to own something which I am both passionate and proud to own. To me, this means something which contributes to my local community, something that I can work hard at every day potentially for the next 15 – 20 years+, and potentially a business that my family can get involved with if they so choose. Ideally, I would like to own a portfolio of businesses in the local market to which I live so that I am financially and intellectually diversified.
If you lack a vision for what your mature business will offer you and do for you, then your search for a franchise will be limited to what looks good on the surface. If on the other hand, you have created a clear picture of what your business must be able to provide – financially and personally as it reaches maturity – you should be well-equipped to recognize the right opportunity when it crosses your path!
“If one does not know which port one is sailing, no wind is favorable.”