Business Advice, Financing Tips, and Small Business Trends from a Young Franchisee
FranchiseHelp interviewed Vishal Sharma, a young entrepreneur and small business owner who bought his first franchise business at 24 years old. In 2009, shortly after graduating from California State University-Long Beach, Sharma acquired the Irvine, CA location of Juice It Up!, a fruit smoothie and juice bar franchise specializing inblended-to-order real fruit smoothies. Due to the business' success, Sharma acquired another Juice It Up! in Tustin, CA in 2011. At 26, Sharma now owns two successful franchise businesses and talked to FranchiseHelp to give advice as a small business owner and young entrepreneur.
Today, Juice It Up has nearly 100 stores across California, Arizona, Texas, and New York. The California-style juice bar's smoothiesare consistently voted "best tasting" among the top smoothie and juice bar chains.
FranchiseHelp: Why did you choose to own a business versus join a company as an employee? And why a franchise versus an independentbusiness?
Vishal Sharma: I chose to own a business because I like to be my own boss. If I work hard, I can make a direct impact on my business.Working for another company, I would not be able to do things the way I would want to do them, as I would have tocheck with upper management. Franchises have a structure that is already set up and has proven to work, so in my eyespaying a small royalty to the franchise is worth it.
FH: What has been your biggest challenge thus far as a small business owner? Any 'everyday' challenges?
VS: My biggest challenge thus far as a small business owner has been to increase the ranking for the stores and to ensurethat customers receive the highest quality service possible. I have not had any 'everyday' challenges.
FH: What has been your biggest victory/rewarding experience as a franchise/small biz owner?
VS: My biggest victory as a small business owner has been to increase the ranking of the store from the 60s to the top 5 inthe company. My biggest rewarding experience as a small business owner has been giving back to the community, suchas fundraising for local schools and organizations.
FH: How did you get financing, any tips? It must have been more difficult as a young entrepreneur.
VS: I was fortunate to have my parents' financial help for the first location. For the second location, my wife and I saved andpurchased the location.
FH: What are your plans for the two businesses you own, and your own career path?
VS: My plans for the two businesses I own are to increase gross sales, catering, and community involvement. My plans formy own career path is to continue improving business for my current locations, as well as obtain more locations.
FH: Any trends or changes you see in small business ownership?
VS: A change I see in small business ownership is businesses with more health- driven products since consumers are morehealth conscious and are purchasing healthier products, such as fresh squeezed fruit and vegetable juices. For thatreason, I am introducing a raw juice bar in my two stores.
FH: Any advice for future young entrepreneurs? What are some of the most important things you've learned from yourexperience?
VS: My advice for future young entrepreneurs is to be involved with your business and act as an owner/operator, not as an absentee owner. Some of the most important things I have learned from my experience is proper time managementand management of employees, as well as excellent customer service.
FH: Any advice for franchise owners in particular?
VS: My advice for franchise owners in particular is to follow the established franchise structure since it has proven to beeffective.
Thanks, Vishal! Visit FranchiseHelp.com for more tips for young entrepreneursand the best franchise opportunities for recent college grads. To find your own franchise opportunities, search our franchise directory.
What Draws Investors to Franchising
Most prospective franchisees are drawn to the business by previous frustrating experiences in their past employments. This could have been caused due to lack of control over one’s work environment, being bound to report to superiors and insufficient room to exercise one’s authority at their work place. The micro- managing bosses, unresponsive organizational structures, or lack of voice in the organizations process are a few of the reasons why many people decide on investing in franchises as their new career. By investing in this business they take control over their own life with a little risk as compared to starting their own business from scratch.
Negotiating the Franchise Agreement
Now that we’ve discussed the franchisor’s point of view and arguments towards negotiating the franchise agreement, here are a couple of tips for not wasting time on trying to negotiate items which franchisors do not alter and concentrating on the change-able clauses in the Franchise Agreement.
How Much Do You Have to Spend?
Whether you’re purchasing a whopper from Burger King or joining the Burger King franchise system, the old mantra holds true: there’s no such thing as a free lunch. When you first get started running a franchise you need to pay a fee to allow you to enter into that franchise. These fees are the largest fees that you will normally pay a franchisor and typically range between $5,000 and $1,000,000 depending on the franchise. The franchisor charges this fee as a way to recoup the costs of expanding the franchise and to continue to grow. From a franchisee perspective, this is a major outlay and can take a long time to make back, but is a necessary step. Aspiring business owners must understand how much capital is available to them so they can ascertain how much they can afford. The cash you have at your disposal is known as liquidity, and there are numerous ways to increase your liquidity above the balance in your bank account. As a result, many people don’t realize how much capital they actually can use for investments, like launching a franchise branch. We’ll run through some of those methods below.
