Getting Clear on Your Business Model

Before joining FranNet, I was a multi-unit operator for one of the well-known national haircare brands, and I operated salons throughout Southwest Florida. The question I often get asked is: How did you find your way into that franchise, and how did you know that it was the right business for you? 

The answer lies in the criteria I defined for myself before I even heard mention of any possible brands as being my preferred franchise business of choice. I’ll credit my FranNet consultant who was working with me at the time for putting the right questions to me, but only I could define the answers. This was going to be my business, and I was the one to operate it, so I had to build a clear set of criteria against which I’d evaluate any business concept that was presented to me.

I had 5 criteria that I applied as my filter for considering businesses:

  1. NO TECHNOLOGY THREAT: The business had to be one that was unlikely to be edged out by technology advancements. Yes, the Flowbee haircutting system had been tried in the past, but it wasn’t a raging success. I liked that haircare was a service that would likely continue to be delivered person-to-person;
  2. CASH IS KING: I favored a business where payment was immediate, and that there would not be any necessity to chase for collection;
  3. LOW INVENTORY: I preferred business models that would not carry a lot of inventory. This would keep my carrying costs down, and also eliminate the need for warehouse space for storage;
  4. PROFESSIONAL STAFF: My vision for a business included a staff that have a strong passion for what they do, as evidenced by formal education and/or a certification. Cosmetologists invested meaningfully in themselves through schooling (both upfront and continuing education). My expectation was that this investment would keep them committed to their career path .
  5. FRANCHISOR’S STRENGTH IN EDUCATION: Again, with continuing education being a priority, I leaned toward franchise concepts where the franchisor had a demonstrated strength in delivering field training to all associates. Technical education in cosmetology was never a strength that I personally could deliver.

As consultants, our role at FranNet is to help our franchise candidates get clear on their business criteria, and to introduce them to franchise concepts that meet some, if not all, of their requirements. If you are ready to build your business model and consider the possibilities that await you, I’d welcome the opportunity to work with you. Simply email me to get started today, or book an appointment to speak by clicking here https://calendly.com/jim-mceleney.

Jul 22, 2022