1. How to Start Your Own Business
Franchising vs. Start-Up

2. What We Will Accomplish
An Overview of
Franchise vs. Start-Up
You’re Going to do What? Why?
Lay of the Landscape
Matching the Why to the Which One

3. Who I am Explains My Choices – My Why
Entrepreneur Manager Risk Taker Risk Minimizer Experienced New to This Independent Structured 30,000 Feet In the Weeds People Oriented Process Oriented Collaborative Commanding It is a continuum, not one or the other

4. What Do I Want? Your Driving Force
Fulfill my passion at work
Work to support my passion outside of work
Make lots of money
Have a balanced work and personal life
Leave a legacy to my family
Help others succeed

5. Personality Assessments
Behavioral and Driving Forces Assessment
Myers-Briggs Type Indicator - one of the most well-known assessments
The Caliper Profile personality traits
Minnesota Multiphasic Personality Inventory
HBDI – Hermann Brain Dominance Instrument

6. What is a Start-Up?
The word Start-Up used in technology and innovation
General Definition - You have an idea for a business - You create everything from scratch

7. But you are starting from zero
What is a Start-Up?
You have experience in a profession
Idea to launch from scratch
But you are starting from zero

8. Characteristics of a Start-Up
National Mom and Pop Business Day March 29th
If it is your profession, you can have the independence you always wanted
If it is a new idea, a patented product, it can be exciting
Opportunity to create your own success
You leave a legacy for your heirs

9. What is a Franchise?
“You use common branding with common systems within a proven business model” - Rand Walker Is a distributor or business opportunity a franchise?

10. What is a Franchise?
Is it a Franchise if it is on the SBA list of Franchises?
SBA says a Franchise is "A legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business. The franchise governs the method of conducting business between the two parties."

11. Characteristics of a Franchise
Many are retail or service businesses
Volume purchasing
Shared advertising and marketing cost
Invests in a proven system which limits start-up and operational pitfalls
You do not deviate from the operations manual

12. Start-Up Franchise Lay of the Landscape Not in Business Risky
Less Risky
Going Concern
Less Risk
Even Less Risk

13. Start-Up Not In Business
Start from zero with
no road map
Most risk of all
options
Validate the idea before
you invest
Has the most opportunity on the upside if scalable

14. Start-Up Going Concern
You can be out front
on day one
You can make
changes to brand
it your own
You don’t answer to someone else so you can try new ideas
You can expand geographically and into new target markets

15. Franchise Not In Business
You have a road map
Someone has done it
and shows you how
Less risky but you still
have to go from zero
to operational
Faster cash flow if a recognized brand and product

16. Franchise Going Concern
You have cash flow
Immediately
There is a team that
knows your business
You have a foundation
to build on with new ideas
from your franchisor

17. Matching the Why To the Which One
These are NOT key factors because they apply to all options. You must have :
Significant funds, assets and/or credit to invest
Ability to manage or to hire a good manager
Understanding of financial reports, cash management
Knowledge of marketing and sales or hire someone who has
Learn to file government reports on time

18. Step #1 Discover your Passion
Will it be:
Helping parents with their childcare gives you peace
Working with animals brings you joy
Designing clothes delivers satisfaction
Producing beautiful artwork calms you

19. Step #2 Know Yourself A Franchise might be a better fit if you are:
More Manager than Entrepreneur
More Risk Minimizer than Risk Taker
More New-to-Business than Experienced
More Structured than Independent
More Detail Oriented than Creative Thinker

20. Step #3 Review Your Finances
Do assessment of your personal financial goals
Consider how much risk you want to take using savings and investments
If you are closer to retirement don’t use your retirement funds for the business
Do a review of funds available from family & friends, partners, equity in property, government grant and loan programs, etc.

21. Step #4 Assess Your Skills and Abilities
Rate these from 1 to 10:
Business management skills
People management experience
Understanding of financial reports and cash management
Marketing, including digital media marketing
Sales skills
Any item less then 4, get training
Any item 5-9, get more advanced training

22. Match Up You & Lay of Landscape
Start-Up
Franchise
Not in Business
Highly flexible
Independent
High Risk Taker
Structured
Will follow the Plan
Will accept direction
Going Concern
May need income now but could look for a turn around
Looking to expand and scale
Have Resources
Stay Steady on Course

23. Match Up You & Landscape
Franchise
From Zero
Franchise Going Concern
Start-Up From Zero
Start-Up Going Concern
Can’t survive one year without income?
A big Risk
Best Choice
A Big Risk
Good Choice

24. Match Up You & Landscape
Franchise
From Zero
Franchise Going Concern
Start-Up From Zero
Start-Up Going Concern
Do you want to do it your way?
Will Not Work
Good Choice

25. Match Up You & Landscape
Franchise
From Zero
Franchise Going Concern
Start-Up From Zero
Start-Up Going Concern
Have a lower risk tolerance?
Better Choice
Best Choice
Good Choice

26. Match Up Once you review specific Start-Up or Franchise Options:
Ask a lot of the right questions
Use a business broker if you don’t want to search on your own

27. Match Up
And
Use the local entrepreneur resources - Score, Hatch, ODU Center for Enterprise Innovation
Go to randwalker.com for local resources

28. Questions?