Franchises

Franchises are a short-cut to small business success. The franchise buyer spends more money upfront to reduce the risk of failure. The heart of this business model is the franchise system, which spells out every little detail of how to successfully run the business.

A good franchise is based on concepts proven in one or more prototypes. There the system has been tried and refined to a high level. It's the proving ground that demonstrates the value of that particular franchise business. It's a model of a business that works. That's what you're paying for if you buy a franchise.

The great E-Myth books recommend a franchise approach to any small business. They argue that it takes 3 skill sets to run any business: the entrepreneur, the manager, and the technician. To the entrepreneur, the franchise prototype is the medium through which his vision takes form in the real world. To the manager, the franchise prototype provides the order, predictability, and system that is so important to his life. To the technician, the prototype is a place in which he is free to to his work.

The detailed systems that are the heart of successful franchises can give you personal freedom too. You can leave your business in the hands of others and know that it will be well run -- as long as they follow the system. And a business with strong systems is better able to withstand the inevitable challenges that come along.

Franchises are not for entrepreneurs who want to be creative. You won't have much fun because the decisions are all made for you. These are turn-key business operations that must be run according to all the details spelled out in the franchise manual.