Franchise Ownership vs Entrepreneurship w/David Weaver
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In today's episode, David Weaver joins Jeremy Dyer to dive into his journey to franchise consulting, his personal investing philosophy, and the difference between employee, franchisee, and entrepreneur.
David Weaver, a FranChoice consultant, brings a wealth of entrepreneurial experience and Midwestern values. Born in Indiana, he learned business from his successful parents. David has over six years of experience analyzing franchise systems and has owned or partnered in seven businesses and recently completed the full cycle of buying, building, and selling a business once again. He and his wife invest in franchises and real estate. Based in Glenwood Springs, CO, David enjoys the mountains with his family and is dedicated to guiding others on their entrepreneurial journeys.
CONNECT WITH DAVID WEAVER!
Website: https://franchiseyourfreedom.com/
LinkedIn: https://www.linkedin.com/in/daviddweaver
Podcast Info: https://speakonpodcasts.com/david-weaver
Facebook: https://www.facebook.com/david.weaver.589/
Email: DWeaver@FranChoice.com
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Understand Your Business Persona
Identifying whether you are best suited to be an employee, a franchisee, or an entrepreneur is crucial. "This is an educational process Jeremy that I'm going to take us through and we're going to find out through this process if you really are an employee, a franchisee, or an entrepreneur." This process helps determine if you have the risk tolerance to make the leap and put your money at risk, or if you need the structure that a franchise provides.
Tip #2: Embrace the Franchise Model for Efficiency
Leveraging a franchise model can accelerate your business success. "Franchising is just ISO 9000 for small business; it is this is the methodology, this is the process, this is the standards that we're going to run this business." Franchising offers a proven system, reducing the learning curve and helping you achieve cash flow and scalability faster than building a business from scratch.
Tip #3: Consider the True Costs of Franchising
It's essential to compare the costs of franchising versus starting your own business. "Some people think franchising is expensive, but try to do all that by yourself; it costs the same or more and takes longer." Franchising includes built-in support and a playbook, which can save you time and money in the long run.
Tip #4: Utilize Franchisee Networks for Support
Engaging with other franchisees can provide valuable mentorship and guidance. "Depending upon the brand, you've got a lot of franchisees out there willing to help coach you along that journey and path to success." This network can be a critical resource as you navigate the challenges of owning a franchise.
Tip #5: Be Realistic About Time Commitments
Understand the time and effort required to succeed in a franchise. "Building a successful franchise means you're building a cash-flowing business, and that takes time, focus, and energy." Setting realistic expectations about the time investment needed is key to achieving long-term success.
Tip #6: Leverage Transferable Skills
Your previous experience can be an asset in franchising. "What you've learned in Corporate America in 20 years is all the stuff you need to be successful in franchising." Skills in attracting customers and managing employees are directly transferable to running a franchise.
Tip #7: Focus on Consistency and Long-Term Goals
Success in franchising comes from consistent effort over time. "Doing the right kinds of things consistently and long enough for the results to show up is crucial." This long-term perspective helps ensure that your business thrives.
Tip #8: Seek Professional Guidance
Working with a franchise consultant can clarify your business strategy. "A consultant will get you to frame why you are doing this in a more realistic way, helping to ensure the investment strategy is smart for you." Their expertise can guide you through the selection process and help align your goals with the right franchise opportunity.
Tip #9: Prepare for Leadership Challenges
Effective management is critical to franchise success. "You need to be good at managing your employees because they are all a little bit different and the same." Developing strong leadership skills will help you build a cohesive and productive team.
Tip #10: Plan for Financial Sustainability
Ensure you have sufficient working capital to support your franchise until it becomes profitable. "Item seven versus item 19 always focuses on the amount of working capital needed to get the business to cash flow positive." Proper financial planning can prevent early closures and set you up for long-term success.
