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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

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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?