You open your business with one goal in mind... and that is to make money, right? Absolutely! Guess what? The absolute number one thing you must keep in mind is that the number one goal of the Franchiser is exactly the same! I know, you are thinking, well, no kidding I already knew that! But, did you really? Do you really know what that means to you? Have you really thought about how their goal of profitability and your goal of profitability are two entirely different goals? You must understand that since these goals are divergent, decisions made by the franchisor are made with only ONE goal in mind - their profitability.
The Colorado Franchiser will say that their success depends on your success. That is only partially true. Sure, they need open units and happy Denver franchisees to expand, but remember, they make their money off your sales - the TOP line. The business issue for you is that driving top line sales does not always translate into bottom line profits for you. For instance, deep discounting of products, while increasing your top line sales, could severely impact your cash flow and your bottom line. Also, adding additional units in your market will increase the top line sales for the Colorado Franchiser, but it could severely impact your sales and profits. In the Franchiser profitability model, two units producing $500,000 each in sales, is better for the Franchiser than your single unit producing $750,000 in sales, even though the decrease in sales impacts the profitability of each unit. This has become a major issue in the Denver franchise community over the years.
There is no reason to be bitter, resentful or angry about it. It is part of the franchise business world. Too many people enter into a franchise or business opportunity and expect everything to be done for them or handed to them. Always remember that it is a Denver business for sale, and your franchiser benefits as much as you do.
While there are great Denver Franchisers out there who truly care about Franchisee success, you must realize that they care about their profitability first. When reviewing opportunities make sure they really do care about YOUR bottom line. Unfortunately, you will never really find out if that is true until you are open and operating your Colorado business for sale. It may even take several years before it becomes an issue. Hopefully, it never does.
That is why the best and most successful direct sales and network marketing entrepreneurs work to ensure the bottom line success of their team. Their level of success is dependent upon assisting and helping each other attain as high a level of success as possible. Done properly, a true network marketing system, with proper support can produce great results, without a lot of the costs and risks associated with the start up of a typical Colorado Springs franchise business. Both models work. Find the one that works best for you.
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