Erik VanHorn is an entrepreneur who uses franchising as a vehicle to success. He has been involved in many aspects of franchising from building franchise sales systems & multi-brand ownership, to helping others find great franchises to buy.
Erik’s Website – Helping People Buy, Grow and Sell Franchises.
3 Value Bombs
1) Franchising can be good for anybody, but you need to know what you want for the business.
2) You need to hire the best-of-the-best employees: people who think, act and behave like owners.
3) Relationships can help excel you and your business much faster than just you grinding it out yourself
**Click the time stamp to jump directly to that point in the episode.
Today’s Audio MASTERCLASS: How to Buy, Grow and Sell a Franchise with Erik VanHorn.
[1:13] – Erik shares something about himself that most people don’t know.
- He loves helping people. When he was in college he took time off, went to Albania, and spent time helping people during the war. He has seen humanity at its best and humanity at its worst.
[2:50] – Should you buy a franchise for the business or for the desired outcome?
- You need to know what you want for the business; you need to be honest with yourself and have the passion for the business or product.
- 2 reasons people get into businesses with side benefit:
- Cash flow – re-occurring revenue model; you can have a predictable lifestyle because money comes in month after month.
- Equity – where you can build real wealth.
[6:46] –Erik discusses traits a franchisor must have:
- Industry and franchise experience – a franchisor should have in-depth industry and franchising experience and key management position within the organization.
- Culture –a franchisor should be franchise-success focused.
- Sales – Be good at the consumer sales process.
- Growth – A franchisor should be focused on growing the brand.
[14:34] – Erick shares an eye-opener for potential franchisees.
- Do not underestimate yourself as a new business owner going into a new industry.
- Before getting into a semi-absentee franchise, talk to experienced franchisees first.
[16:43] – The 3 most common mistakes a franchisee makes growing their brand:
- Trying to grow too fast.
- Not taking advantage of other experienced franchisees.
- Not painting the vision and opportunities for your team to grow.
[21:14] – Erik talks about the best way to scale your franchise.
- You need to hire the best-of-the-best employees; people who think, act, and behave like owners.
- Do whatever you can to empower your employees or your team.
[25:42] – When should you think about selling, and how do you prepare for a sale?
- Have a goal of selling; have franchisees around you.
- Put key people in places; have people who can run the business for you.
- Your employees may be potential buyers of your business.
- You can prepare by knowing who your buyer is, and as you are growing the brand and the franchise, you want to be aligned with the franchisor.
[32:53]– Erik’s parting piece of guidance
- Think bigger.
- Relationships can excel you and your business much faster than just you grinding it out yourself.
- Be the giver. Be generous with your time to give back.
[33:50] – Erik’s call to action for Fire Nation
- FranchiseSecrets.com – Check out Erik’s website! Helping People Buy, Grow and Sell Franchises.
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