All kinds of people decide to open franchises, from experienced business owners to employees dreaming of being their own boss.  Because of the nature of franchising, not a ton of business experience is necessary to succeed. That being said, one of the most important things to learn about is business expenses.  Understanding and managing your cash flow is vital to being a good business owner. Here are four business expenses that new franchises may overlook. Be sure to research all of these for any franchise you are considering joining.

1. Training fees

Most franchisees have set prices for the entire package of opening a new location.  The first things you pay for are your initial investment and training. What many people fail to realize is that this initial cost is not the only training fee you will have over the course of your business.  Many franchises require additional training. This can be for business owners as developments are made in the company. Other times the training is for employees. Before committing to a franchise, ask about their training prices.  Be sure to find out who needs training, how often, and how much it costs.

2. Failure to attend fees

This is one that slips the mind of all but those very familiar with franchises.  Some of these companies have annual retreats, training, or conventions that representatives from all their locations must participate in.  Failure to attend mandatory events is a not so smart way to raise your franchise prices. Be clear on this from the beginning as well. What is required from business owners in the franchise?  What events must they attend? What is the consequence for not attending? Keeping an eye on these expenses is important so that they don’t add up under the radar.

3. Royalty Fees 

Franchises run on royalties.  The parent company earns a percentage of the profits from all of its locations.  Sometimes this is for a measured amount of time. Other times royalties continue until the franchise makes a certain amount of money.  Some franchises pay royalties for as long as they exist.

Understanding your parent company’s royalty policy is necessary because it is one of your main business expenses.  A few percent every month may not seem like much, but if you end up struggling, that small amount could be what breaks you.  This is why choosing a franchise with low royalty fees is best. Do your research before committing to a specific brand.

4. Transfer fee

Thinking more long term, what is your plan for your franchise?  Whether you want to sell it or transfer the business to another owner, you will most likely need to pay a fee.  It is never too early to start looking at this expense. Putting money aside for this as soon as possible can help you a lot.  If you know the franchise prices for transferring and have the cash saved up, you are free to leave whenever you want. Having an exit plan from the beginning is the quality of a strong business owner.

Looking to take on your own business expenses and become an owner?

Are you ready to start running your own company but don’t have any idea how to start from scratch?  With a franchise, you don’t have to.  A Better Solution in Home Care can help you open a business for an initial investment of just $50,000.  They provide all the training you need to succeed, even if you know nothing about business or healthcare.  Visit our website to learn more.

Many employees dream of being their own boss.  What people don’t often consider when they debate becoming a business owner is starting a franchise.  A franchise business has all the pieces of an individual company with a lot of foundational stuff in place already.  Because of this, a franchise is a great first business to own and run. Here are three tips for first-time franchise owners.

Take advantage of all your parent company has to offer.

Companies that help people starting a franchise realize that these people may not have experience in the field they are in or business experience at all.  This is why most of these companies offer tons of training and advice to their clients. Don’t brush this off. There is no one that knows more about the franchise you are about to begin running than the parent company.  From operations manuals to business training, they have everything you need to succeed in a franchise business – as long as you are willing to listen.

Don’t forget about this help once you are well into running your business, either.  The company can be there every step of the way to offer advice. Remember to reach out when you are facing a challenge, even when you think you have nothing left to learn from them.  Chances are, there is another franchise in the company that has experienced something similar.

Have clear expectations of the time and money you will be investing in.

Before you commit to any sort of franchise deal, you need to do your research.  How much is a franchise business going to cost you – not just initially, but in the first year or more?  Time also needs to be taken into consideration. How much time can you invest in this business? If you still have another job, you need to seriously consider the pros and cons of leaving.  Find out what other franchisors are investing in their businesses. Is your company more hands-off, or will you need to be there all day every day? Thinking through all of these before you even begin is important so that you know what to expect as you head into a different period of your professional life.

Have a long-term plan.

As you head into being a franchise owner, what is your goal?  How long do you want to own this franchise business? Maybe it’s something you want to dip your toe into and then get out within a few years.  Maybe you want to pass this franchise on to your children someday. Either way, knowing what you want from the start can help you actually make it happen.

This is true for more than just an exit strategy.  Figuring out your goals for the franchise is an important step in planning.  From how much money you want to make to how many customers you want to reach, everything is more likely to succeed if it is thought about and planned well.

Looking for a franchise business?

Many people think of stores and restaurants when they think of franchises, but the idea goes way beyond that.  Healthcare franchising is a great way to become a business owner and positively impact your community.  A Better Solution in Home Care can help you open your own franchise for an initial investment of just $50,000.  Whether you have healthcare experience or know nothing about the field, they can help you succeed in running a home care network in your area.  Visit us online to learn more.

It’s the push and pull in every business – you want to make an impact, but you need to make money.  This is especially true in companies that directly impact their client’s lives like healthcare. As a business owner, you want all of your company’s patients to be well cared for.  At the same time, you need to make money to pay your employees and yourself as well as keep the business running. The trick is finding the balance between client care and profits. Here are some tips for how to do that in your healthcare franchise.

Hire good staff

You may be wondering what this has to do with balancing care and cash in a healthcare franchise.  Hiring is the place where these things intersect. In order to provide the best care for patients, you want to hire the best people.  In order to run your business most efficiently, you want to hire people who are worth every penny they are being paid. Starting off by hiring staff that aligns with the goals of the healthcare franchise is key to getting the care/ profit balance off to a great start.

Don’t compromise – in either direction

It can be tempting to make a decision that would greatly help either a client or the company but hurt the other when you have all the power.  This is why it is important to layout your goals for franchising from the beginning. Your business should definitely have ethical standards to live up to, but you also need to decide in what areas profits are the priority.  For what services is pricing flexible, and which prices are set in stone? Thinking through your goals and values at the beginning of your franchising experience will help you stick to them when things get hard later on.

Know where your money is coming from

This may seem obvious, but it is important in any business to establish a good relationship with the people that are giving you money.  In senior healthcare franchises, this often means insurance companies. Keeping lines of communication open and taking the time to understand contracts can make a huge difference in the profits of your company.  Patients often don’t understand exactly how insurance works, so being able to explain costs in a simple way is also beneficial.

Recognize that quality care is what leads to good profits for a healthcare franchise

Maybe you know more about the business side of things than about senior healthcare franchises.  If this is the case, it will be natural for you to look at things purely from a business perspective when money gets tight.  It is vital to remember that in order to make money in healthcare, you have to provide excellent care. It’s not just a good thing to do or the right thing to do.  Providing good client care is actually a profitable thing to do. 

Think of it this way: for senior healthcare, people often do at least some research before committing to a specific company for home care.  You want to create the type of healthcare franchise that has tons of positive reviews online. You want your company to be the one people recommend to their friends and colleagues when they hear they are looking for a home care provider.  The only way to achieve this is to provide satisfying, high-quality care to every patient, every time.

Want to join a healthcare franchise?

Always dreamed of being a business owner?  With A Better Solution in Home Care, you can run a home care franchise for an initial investment of just $50,000.  Visit us online to learn more.

Nearly every adult in the United States has experience being an employee.  A comparatively small number of people own businesses, though many dream of doing so.  Owning your own business means being your own boss. It is hard work, but you are in charge of the outcome of that work.  Here are five tips for transitioning from employee to business owner.

1. Don’t expect to know everything right away.

Just like any new job position, becoming a good business owner takes time.  While you do have the opportunity to do a lot more on your own, don’t be afraid to reach out to others for help.  This is especially true if you are starting a franchise business. There are many other business owners within the franchise that have been in the same place you are.  Use their expertise to find out what you should (and shouldn’t) do as you build your company from the ground up.

2. Recognize good business owner characteristics in yourself and capitalize on them.

A great business owner is a very driven person who won’t back down from a challenge.  This is even more important than knowing a lot about the business you are starting. As you are thinking about becoming a business owner, think about your personality.  Are you highly motivated? How focused are you on success? What else do you want to do with your business besides make money – who do you want to impact? These and other questions can help you find what your strengths and weaknesses are as you head into this new position.

3. Don’t think you need a new idea to be a successful business owner.

Maybe you’ve never taken the step to become a business owner because you are waiting for the next big thing to pop into your brain.  Businesses don’t have to be super unique to work. They just need to exist where there is a need and to run well. For example, a franchise business is more or less the same everywhere a franchise exists across the country.  However, if it has a good business owner and is able to reach customers, it will be a success, despite not being the only one of its kind.

4. Don’t forget where you came from.

Did you hate the way your boss communicated with the company at your previous job?  Was the vacation policy just plain terrible? Remember what you liked and didn’t like as an employee when you transition to a business owner.  It is easy to forget what it was like before once you are in a position of power. Be purposeful in remembering which traits you liked in the bosses you had in the past and which you didn’t.  This is your opportunity to give a group of employees a place they love to work.

5. Consider a franchise business and save.

Becoming a business owner by opening a new location of a franchise is a great way to get in on the action without risking it all.  Franchise businesses are already established, and they have plenty of tips on how to start your own place. Perhaps best of all, investing in a franchise is worth it.  Unlike starting a small business from scratch, a franchise business has the experience to make your investment worthwhile. The odds a new business will fail in a franchise are much lower than a company all on its own.

A Better Solution in Home Care can help you become a home care business owner for an investment of just $50,000.  Visit our website to learn more.