Creative Endeavors
Just because you bought into a franchise system that has everything thought out for you doesn't mean you should stop thinking for yourself.
All innovative entrepreneurs considering starting a business
face a tough decision: Should you start your own company--becoming
master of all business decisions and champion of personal
destiny--or succumb to a franchise's rules, plans and, of
course, royalties?
Marc Guttman has faced this very dilemma. He co-owns three
Navis Logistics Network franchises in the Colorado area--two
with his wife, Kathy, and one with his partner, Howard Feldstein.
"We could have started our own business and become Marc and
Kathy's Pack and Ship," says Guttman, 54. "But the
concept of franchising was more appealing because I didn't know
how to start a business. I just knew I wanted to do it."
Guttman found he didn't have to sacrifice his creativity to
gain guidance when he heard a radio ad mentioning the sale of seats
from the now-demolished Mile High Stadium, the former home of the
Denver Broncos. He realized these seats would need to be packaged
and delivered, and his company wound up being the exclusive
shipping company for the project.
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Guttman isn't the only example of this new breed of creative
franchisees. Felix Mirando, 42, found his franchise system,
Heavenly Ham, allowed flexibility when he developed the
"box lunch," a ready-made lunch meal catering to nearby
large corporations. "I recognized the potential for offering
catered lunch packages," says Mirando.
So what's the downside of franchising? Royalty payments,
both entrepreneurs agree. Royalties cut into your profits and
usually come off the top. Guttman also cautions that franchisors
"have the right to stick their nose in every part of [your]
business."
Still, Guttman's Mile High triumph validates his decision to
purchase a franchise. "I went to my franchisor and said,
‘I've got this potential piece of business, and I need
some help,'" says Guttman. "I could not have done
that job without the help of the franchisor."
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