Wednesday, April 17, 2013

Why are people standing in lines at Starbucks?

      The simple answer to this question is that it works !  Many have developed a taste and a habit for Hazelnut Macchiato Espresso or Chai Latte.  Others, like me, just love coffee.......strong black coffee varieties from around the globe.   The more subtle reason why Starbuck's "works" along with every other popular franchise is that when you walk in the door you know exactly what you are going to get.  No more mediocre coffee, unqualified service companies, and substandard products.  All they need to do is deliver what you are expecting with a high level of consistency.  That's it, BOOM !!  Success !

     Of course there are many franchises that do not succeed for a variety of reasons, a fact well concealed by the franchise industry.  Local knowledge is essential in choosing the right location and a product or service that matches up with the needs of the local demographics. The type of business also needs to match up with the skill set and experience level of the franchisee. Working with an experienced business broker is invaluable in helping a buyer make the right decisions.  It can be the single biggest factor in avoiding obvious and unnecessary mistakes along the way.

     The reason I want to talk about franchises is that we are seeing a trend of people moving to Florida who are not ready to retire or more often, cannot afford to do so when 10 year CD's are paying 1.01%.  Their plans have changed along with the unforgiving world economic downturn and they need a source of income.  For many of these folks, but not all, a franchise business may be a perfect fit.  I say "not all" because often an ongoing business that is not a franchise is a better fit.  I have written a questionnaire that many of my clients have found helpful in evaluating what type of business best suits their individual needs and matches up best with their skill set and level of experience.  Just send me an email and I would be glad to send along a copy to you.

      I want to emphasize how important "local knowledge" is.  You probably would not buy a house in Florida without the help of a local Realtor to guide you and answer any questions or doubts you may have.  It is doubly important to work with a local business broker when buying a local business or a franchise.  Would you want a franchisor's 'real estate expert' from Chicago help you select the best location?  We have all seen a spot where one restaurant after another has opened and closed.  It's the location !  Local knowledge, can't beat it.  If you want to see businesses for sale in Florida, or learn more  please get in touch by visiting our website:


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