In this episode we interview Nick Neonakis, author of The Franchise MBA and CEO of The Franchise Consulting Company. He shares value insights, tips and advice for those considering investing in a franchise business.
About Nick Neonakis:
Nick has over 20 years of business experience with 10 years as a senior executive in franchising. He is proof of the American Dream in Action; his family moved from Greece when he was a boy and achieved success in this country through hard work and education.
Now, his greatest joy – outside of his wife and 3 children – is in helping those who have made the decision to achieve independence through business ownership and make their own dream a reality. Nick has dedicated himself to what he believes he is best at and loves doing: connecting with people, problem solving, creating opportunities, and offering pragmatic advice.
Nick is the co-author of the book “The Franchise MBA”. The purpose of this book is to help you create wealth through using a franchise vehicle as a business investment. It provides information, frameworks, and stories to help you make an informed decision about whether owning a franchise is the right step for you.
- The Franchise MBA book: “This comprehensively researched and deftly written franchise guide brings together experience and fact to give you the tools you need to understand which franchise is right for you. With insights from respected franchise leaders and a thorough understand of franchising, this book will help you understand and master the 4 Critical Steps to finding the Ideal Franchise: 1. The Introspective Self 2. The Franchisor 3. The Franchisees 4. The Legal and Financial”
- “The best transfer of intellectual property that has ever been created in business.“
- Franchises account for 1 out of every 8 jobs in the United States.
- Nick has found success both in the corporate world, and being his own boss. He eventually felt that to put his “own stamp” on the world was for him to venture on his own.
- Nick believes you need to identify where you want to be in five or ten years, and then plan a path to get there.
- “Either you have the ability in this one life that we have, to chart your own destiny, or to follow the course of someone who has charted their destiny.“
- When you work for someone else, 100% of your income is dependent on that other person (i.e. the owner, shareholders, CEO, etc.).
- Franchising is a great option to consider for first-time business owners. You are leveraging a team of people that are working with you to help you be successful with your business.
- When evaluating a franchise, you are able to closely examine the business model and make sure that it’s a fit for you. You are able to “pressure test” the business concept every step of the way before committing to a particular franchise.
- One of the biggest challenges is with defining yourself before you begin the franchise selection process. It’s important to understand who you are, and what is your leadership and management style. This is one area in which The Franchise Consulting Company specializes.
- A common characteristic that makes for a good franchisee is someone who is entrepreneurial, but is also able to follow a system.
- How do you calculate risk when you look at a business opportunity? With a franchise, you are better able to calculate the potential risk of the investment.
- What has greater value to you, the foundation provided by the franchise or the flexibility to have an unlimited ceiling in flexibility?
- There are many options available to finance your new business. But it primarily boils down to other’s people’s money or your own money. Often it’s a combination of financing methods that are used to start a business. It’s also assumed that you have some capital and a decent credit score.
- You need to read the Franchise Disclosure Document (FDD) but it might make better sense to first evaluate potential franchises, then narrow it down to a select few for which you actually read the FDD. Nick also suggests that you consult with an attorney to review the FDD and the Franchise Agreement.
- The Franchise Consulting Company works with individuals to help them understand what they are trying to achieve, and then connect them with potential franchise businesses. There is no fee to the client, as the fees are paid by the selected franchise company.
- To received a free copy of The Franchise MBA book, click on the link in the Resources section below.
Books mentioned in this episode:
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Other Resources mentioned in this episode: