When choosing a franchise it’s important to understand the industry you are about to enter. Here at Shots Miami, we are proud to partake in the ever-expanding bar & nightclub industry. Let’s take a look at the state of the bar industry, shall we?
Sales in the drinking place sector in the United States have steadily grown since the mid 1990’s reaching 23.15 billion U.S. dollars in 2015, according to statista.com. This includes all establishments that primarily sell alcoholic beverages for immediate consumption (bars, pubs, lounges, taverns, nightclub’s, etc.). Our industry has grown at about a 1.1% rate since the mid 1990’s and it’s one of the only industries that saw a bit of growth during the most recent economic recession.
Although we’ve seen steady growth in the industry overall, 1 in 10 make it past the first year and about 80% of those that do make it, go belly up within the first 5 years. The landscape is brutal! That’s why an established brand and franchise opportunity incredibly increases your chances of success. A good track record for a franchise show’s that their brand has been able to withstand the test of time. Especially when we’re referring to the bar and nightclub industry.
Moreover, there are over 65,000 bar and bar-like establishments in the U.S. alone. The market is saturated, which makes it that much more difficult to succeed.
Yet, it’s not all doom and gloom ladies and gentlemen. The bars that do get past the initial hurdles can potentially enjoy excess returns. While the amount a bar can earn depends on size, location and other factors, an average bar makes between $25,000 and $30,000 a week! It is widely accepted that bars can make between 200 to 400 percent on drinks served! An extremely attractive margin for bar owners.
The reality is the bar industry has enjoyed steady growth for decades. Although it is a rough terrain, when managed correctly, a bar can enjoy remarkable returns on investment.
Check out our 7-step SHOT at Franchising to make this happen for you!Read More
For those of you who may be thinking of starting your own business, you most definitely have come across the idea of buying a franchise. Whether you made a quick google search or your next door neighbor recommended it, owning a franchise is an incredible opportunity for anyone wanting to go off on their own. (Check out my last blog post on why franchise is a viable option when starting your own business.)
Now, one major question arises in all our minds when thinking of purchasing a franchise. Will I be successful?
There are numerous qualities that would increase your chances of being successful, but here are my five characteristics that, more than any others, determine the success of the franchisee:
- Risk Aversion: Anybody who knows about entrepreneurship or setting up a business, will tell you that it’s incredibly risky. Although there is risk involved, the successful franchisees are risk averse. They are willing to take some risks but prefer to minimize it as much as possible. A strong franchise with a proven track record of success will minimize this risk. Successful franchisees do their homework, so they know what they’re getting into.
- System Orientation: Don’t think that you need to be a born entrepreneur with Elon Musk-ish type talent to become a franchisee. That’s simply not true. Successful franchisees seek and use proven systems in their organization. They want a system of operation that shows them exactly how to run the business so they can avoid mistakes. This helps franchisees be more successful more quickly.
- Coachable: The motto of franchising is “In business for yourself, not by yourself.” Their philosophy is: When in doubt, ask. They seek out opportunities to learn from those who are already successful in the franchise system.
- Hard-working: Successful franchisees have an affinity for hard-work. They will do anything and everything to get the job done. No matter what franchise you buy into, you can be sure it’s going to take work to make it successful. Great franchisees know and accept that fact.
- Strong people skills: The most successful franchisees always have excellent interpersonal skills and can effectively interact with their employees and customers. These skills help to create loyalty, value and trust. It is probably the most important skill of all five.
Buying a Franchise – Shots Franchise
Buying a Franchise? Starting your own business can be one of the most exciting times in your life. It’s intriguing to think about not having to adhere to the boring 9-to-5 structure and constraints of a fixed income.
As exciting as it is, the difficulties of starting a business from scratch can be daunting. So, one major question arises: Should you start a business from scratch or buy an existing business?
One advantage of buying an existing business is that the structure is already established. You don’t have to gruel through the start-up phase. Moreover, you will be able to hire skilled staffers and provide services to an established clientele.
An even better approach might be to think of buying into a franchise. Instead of taking over a business and becoming its new owner, you will be given a comprehensive business system to manage. Furthermore, your new business will have an established track record.
If you have little or no business experience, starting a brand-new business from scratch can lead to devastating results. It is not easy, and your chances of success are very low. Even when making an investment in buying an existing business, you still need to have working knowledge of how to manage business finances, marketing, sales, and accounting.
Franchising offers incredible benefits to you in these regards. Some benefits of buying into a franchise is, for one, you will be representing an established brand. You will be able to work with a network of other franchisees. And lastly, you will get training on all the aspects the business operations.
This type of support and training is extremely valuable when it comes to starting a business. A franchise will take the time to help you develop any missing skills that you might have in running a business. This difference between starting a business from scratch, buying an existing business, or buying into a franchise can ultimately make or break your success.
Consequently, considering a franchise business opportunity is an extremely viable option to any of you that are thinking of venturing off on your own.Read More
Invest in Franchise or Not?
Working After You Get Retired? – The idea of buying a franchise as an encore career for boomers has been around for some time. But the skeptics fail to believe in the success rate that these entrepreneurial wonders offer. Reportedly low failure of franchises in comparison with de novo startups by proselytizers is in reality not supported so much by actual numbers. The difference is minimal, but according to a franchise broker, Bill Freund, the whole universe of franchise business is so diverse that it is not so much a bad idea to try your luck and explore while you are still unretired. If the option works for you, there is nothing better for you once you are retired. Also, if it doesn’t, you still have a job from which you can get the most. The experience is worth it though, and it highly depends on the match between your personality and the franchise business you are taking up whether the two are to last any longer.
What Exactly is a Franchise?
Before delving deep into whether buying a franchise is beneficial or not, let us first have a look at what exactly the whole hype of a franchise all about. A business owned by a franchisee via a legal agreement that bounds the franchisee to follow a specific business model and follow certain rules specified by the franchisor is known to be a franchise business.
The most sold franchises are those by the widely prevalent food chains such as Subway or McDonald’s. Other entrepreneurs are as many and varied as there are business options in the entire US. The cost to set up a franchise also varies from a couple of thousand dollars to many millions.
Benefits of Buying a Franchise
According to Arthur Koff, the head of Retired Brains (an online site aimed at helping boomers and retirees in planning retirement) and author of the biggest attraction for a franchise, especially for boomers, you do not need to brainstorm a lot on a new business strategy. The reason for that is that there are opportunities for you to take advantage of somebody else’s already successful and proven business model.
Eric Stites, a chief executive officer of the market research firm, training, marketing, and support are part and parcel of a franchise, so these areas don’t need any coverage when you decide on buying one.Read More
Baby Boomers Have Left Retirement in the Rearview Mirror – Looking Forward to Investing in Franchises to Stay Focused and Active
Baby Boomers and the Increasing Trend
Baby Boomers – The generation that sprung right after World War II has other plans for their old age than retirement. That’s right. Baby boomers are increasingly looking forward to buying business franchises as part of their retirement plan. In fact, they have taken early retirement or golden handshakes to support their new plan already.Read More