Scott took a different path. He grew up with parents that were big in education. But Scott didn’t get along with education. He left college in the middle of his sophomore year of college and asked to borrow $20k to start a pizza shop. Needless to say, it didn’t happen and he ended up in Washington DC working in the news business and the Reagan administration. But, he was just not an employee and wanted something more. He left DC and started some businesses in printing, restaurant, home services, and some others.
He got involved in a restaurant fast casual chain and had a lot of success brining him into the franchising space. After about 10 years, left to start his consulting business to help people in their journey of entrepreneurship.
You left corporate America to pursue entrepreneurship. What is your advice to people wanting to go out on their own and make the leap?
- You must be prepared for the risk/reward.
- In anything you do, there is a risk/reward with it.
- You need to plan it out and involved your family in the process.
- You do not want to “buy a job.” You must understand why you want to open or own a business.
At the 8 min mark, Scott talks about the 2 types of entrepreneurs, the Visionary and Process entrepreneur.
Let’s talk about franchising. Why does franchising make sense and why doesn’t it for people?
- The best analogy is if you loved food and always wanted your own restaurant. If you bought a franchise, you have to serve the food they tell you to and do it their way. As an independent, you get to choose what you serve in your restaurant.
- What are you really good at? Delegating to people to run the systems of a franchise or are you good at building the systems and have things done in your own way.
Take us through your process and steps to help people understand what they want…
- First, Scott wants to make sure the client has put themselves in a position where they want to learn and educate themselves.
- There is a lot more to franchising than the “golden arches.”
- Step 2 is knowing why you want to leave what you are doing and build the business – because you do have to build. Understanding your why is the most important pieces.
- Step 3 is understanding the financials and returns on investment to see what is possible and makes sense for you.
How do you help people to best understand their why?
- The first question is “If we were to flash forward 5 years from now and in those 5 years you were a business owner, how would life be different?
- What are the differences/changes you would see?
- People want to get out of the “complacent optimist” position they are in and act, but need help to do so.
- Understanding the endgame and what it looks like is great way to back into the why.
“Franchises aren’t sold, they are awarded,” explain that….
- Just because you can afford it doesn’t mean you will get.
- Franchisors are kind of like pro sports scouts.
- As you are vetting them, they are vetting you for their team and making sure you are the best fit for them.
- Franchisors care most about if you can follow the process and systems.
Which verticals of franchises are trending the best right now and why?
- People thought that home services would fall apart during the pandemic, but it is the opposite, the vertical is doing very well.
- Businesses that are need, not a want that have recurring revenue do well. Things like the beauty industry like haircuts, nails, etc.
- The pet industry is doing well, especially for dogs.
- Automobile franchises are doing well.
- The recession resistant brands that people need are always good.
What is the benefit of using a franchise consultant like you vs. working directly with the franchisor?
- Scott’s job is to educate on what the expectations are in the process and questions you should be asking of the franchisor.
- He helps streamline the process helping to focus on what is important to them and aligning that with the brands that fit.
- He is an advisor to help ensure the best outcome possible.
Can people negotiate with franchises?
- Yes, but it is on certain things.
- If you are buying multiple territories or units, you can negotiate on some items.
- Royalties and fees are not negotiable.
Anything else we should know?
- The royalty structure is how the franchisor earns their income,
- Things like marketing fees should not be money making for the franchisor, so it is something you want to watch.
- Franchising is highly regulated by the govt, which helps to ensure people are treated fairly.
What are some of the most important lessons and principles you’ve learned in your entrepreneur journey?
- It’s pretty easy to fail. It takes a lot of hard work to be successful.
- You must be self-disciplined.
- People that think they know more than the franchisor or know better, typically fail.
- It is nice having a support system from the parent of a franchise.
- Being an entrepreneur allows you to get into multiple different things.
Anything you’ve learned on how to build support systems as a solopreneur?
- You cannot be afraid to ask for help.
- Do not let ego get in the way.
- Seek out people you can lean on and be honest and open with.
- You have to constantly be learning and growing.
Best advice for an entrepreneur just starting out?
- For someone who just invested in a franchise, rely on the support levels the franchisor offers.
- Get involved and meet other franchisors and learn from them.
- Ask, ask, ask. Don’t let questions go.
- Get to know your people and listen to your employees.
Best Quote: :Franchises aren’t sold, they are awarded..."
Scott's Misfit 3:
Having strong values is very important to be successful in life and business.
Be true to yourself and do not let ego get in the way.
Have fun. Life is short and goes by fast. Enjoy it!
5 Minute Journal: www.MisfitEntrepreneur.com/Journal
Travis Makes Friends Podcast: Search for the Podcast anywhere you list or go to www.travischappell.com/show