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Old 04-10-2012, 06:59 PM
 
744 posts, read 859,451 times
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Default Opening a franchise

I know there's a line here where discussion turns to advertising and the thread gets pulled. This is not that.

I'm stoked. I've made the decision to open a franchise. It's exciting and scary as hell.

If anyone wants to offer any advice, especially regarding NC specific small business, it would be great. We can take it offline as well.

I'm really excited to do more than sit in a cube and collect a check.
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Old 04-10-2012, 07:42 PM
 
162 posts, read 70,781 times
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That is so exciting! Congrats to you, I just decided to open a small business myself, it is both scaring and exciting! I wish you the best of luck.
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Old 04-10-2012, 07:58 PM
 
744 posts, read 859,451 times
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Quote:
Originally Posted by abri07 View Post
That is so exciting! Congrats to you, I just decided to open a small business myself, it is both scaring and exciting! I wish you the best of luck.
And you as well. I have a whole new perspective when I shop at a small business. I don't use coupons anymore because I know it comes right out of their pocket.
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Old 04-11-2012, 05:41 AM
 
Location: Charlotte, NC
3,221 posts, read 5,943,087 times
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As my Father over the years has been the accountant to numerous small businesses.

I can offer the following :

Watch payroll costs, the best asset to the small business is you.

A local example the Quiznos in Latta arcade the franchise owner can be seen working everyday.

Also balance the books daily if that is not practical, weekly, this can catch a problem quickly.

Do not rely on a Manager do take care of your interest, they can get carried away with your money.

Sometimes businesses bleed money without realizing and by the time you find out you are in a deep hole.

Also pay yourself last, if you cannot pay suppliers they will very soon stop delivering.

Lastly spend smart, once the franchise is up and running don't go out and buy a $70,000 custom van when a $20,000 one will do.
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Old 04-11-2012, 07:34 AM
 
79 posts, read 101,420 times
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Quote:
Originally Posted by flyingscotsman View Post
Lastly spend smart, once the franchise is up and running don't go out and buy a $70,000 custom van when a $20,000 one will do.
I will second the spend smart comment and add another:

-Don't get carried away with the fads and pet projects. Unless you can realize true value, they will eat up your time and cause you to bleed money on things that don't really matter.

Good luck!
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Old 04-11-2012, 05:17 PM
 
744 posts, read 859,451 times
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One of the scariest things is health insurance. Anyone here who has had to purchase their own insurance, I wouldn't mind discussing it with you. So many different plans. The deductibles are shocking coming from a lifetime of group plans.
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Old 04-11-2012, 05:22 PM
LLN
 
Location: Upstairs closet
3,553 posts, read 4,221,872 times
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Slow to hire, fast to fire. Believe it!
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Old 04-11-2012, 05:29 PM
 
3,915 posts, read 1,249,465 times
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The advice I've heard about franchises is to stay away from any franchise where the owners don't run a significant percentage of the stores themselves.

You will need to decide how you want to incorporate, how it's owned, the advantages/disadvantages of paying yourself a dividend vs income (you will do both) with the idea of keeping your taxes as low as possible. I'd find a tax lawyer to help with this. As someone who is involved with a business with an employees, find yourself an accountant who will handle the paperwork, taxes and run the payroll. You don't want to take this on. Otherwise you will spend so much time on this, you won't have time to run the business.
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Old 04-11-2012, 06:31 PM
 
744 posts, read 859,451 times
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I'm definitely using an accountant and tax lawyer. I thought I was going to use our personal accountant until she made statements about self directed 401k that were flat out wrong. I really need solid professional advice for setting that up and minimizing taxes.

I'm required to work there full time, so that's not an issue. I'm also required to use a payroll service for the first year. At $100/month, that sounds like a bargain considering everything else there is to worry about.

And I'm already researching security cameras that I can view on my phone/tablet when I'm not there.

I have to do about 300 hours of training before opening.
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Old 04-12-2012, 05:39 AM
 
Location: caribbean island
5,340 posts, read 4,926,207 times
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Pizza?
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