Field-tested business consultant shares secrets of choosing the right franchise

By: Richard Simtob - President of Finance and Development at Wireless Toyz.

 

/> Farmington Hills, Mich. - Even after one has made the initial decision to buy into a franchise opportunity, there is an endless checklist of things to consider before choosing ‘the right one.´


Recognized franchise expert and President of Finance and Development of Wireless Toyz; one of the country´s fastest growing companies; Richard Simtob recommends a cold, hard look at every one of his top 10 franchise selection criteria before making the leap.


There is one acid test Simtob prescribes to everyone who comes to him for advice about choosing a franchise opportunity: "Make sure you select a business which you are truly passionate about," says Simtob, a 38-year-old entrepreneur who has managed the expansion of Wireless Toyz Cellular Superstores into national mega-chain status.


"Like any business you choose to run, you´ll be nurturing it for a long time," says Simtob, "and nothing is worse than a marriage without love. Are you intimidated by technology and change? Then a telecommunications franchise is not for you.


"The second most important thing, is to have skills and a real liking for the daily operational tasks required in your selected business. If you hate dealing with people and problems, don´t choose a business in which success is predicated on being a good listener and inventive trouble-shooter. Don´t expect to change your basic character just because the money is good."


Simtob sees this principle at work everyday at Wireless Toyz where he is responsible for the strategic direction and management of the organization´s franchise growth, as well as its technology, financial and business systems.


"Wireless Toyz is a good example where franchisees with passion for the business are typically more successful," says Simtob, "we were founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.´ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes our consistent sales leaders is a passion for solving problems, one customer at a time."


Here are Simtob´s Top 10 criteria for choosing the right franchise - regardless of the businessperson´s temperament or personality type. Simtob emphasizes that this is not a definitive list by any means, but a good starting point. Legal considerations, for example, constitute an entire checklist in themselves:

1. Choose a business about which you are passionate. Do you believe in what you will be doing? If you love what you do, you´ll never "work" a day of your life.

2. Choose a business whose daily tasks align with things you like to do. Do you enjoy dealing with people, food, travel, coffee? Are you happy recruiting, managing and retaining employees? Make a list of likes and dislikes.

3. Can the dollar potential of the business meet your long-term financial goals?

4. Do the investment requirements and start-up costs fit within your budget? Is

financing assistance offered? What is your risk tolerance?

5. Is the income potential - short and long term - sufficient for you and your family? Are royalty payments reasonable and designed for both the company and franchisee to profit? Is this is a true entrepreneurial opportunity to acquire wealth or just a repackaged "employment opportunity" and which do you want?

6. Assuming the product is superlative and demand has been established, is the

franchise system itself a good one and based on a sound business strategy? Would you be comfortable executing that system?

7. Is the brand solid, recognizable and likely to lead to sales on its own strength?

8. Has the company been around long enough for most of the kinks to be worked out? Has the concept caught fire? Franchising is a business model in which being "in on the ground floor" is not always an advantage. Many never grow beyond a few units before they´re dust. Buying in too early can be risky, but also comes with rewards as a founding franchisee.

9. Are franchisees in the system allowed the level of autonomy and independence that you desire? Or will your business creativity be stifled at every turn? If you want maximum decision-making freedom, don´t consider a Mc-franchise. On the other hand, you may not like that feeling of twisting in the wind if there is minimal or no support. Consider the level of assistance you need for real estate, store layout and design, ongoing operational field support, business analysis, training manuals, marketing and advertising.

10. Knowing how to get into the deal is only half the equation. Is there an exit plan and separation strategies that are acceptable to you?


As President of Finance and Development of Wireless Toyz, Richard Simtob is responsible for the strategic direction and management of the organization´s franchise growth, as well as its technology, financial and business systems. Previously Chief Operating Officer, Simtob managed the expansion of the company´s franchise network through the opening of 66 new stores in 2006. His efforts were pivotal in earning Wireless Toyz recognition as No. 169 in the "Franchise 500," No. 98 "Fastest-Growing Franchise" and No. 1 in the "Wireless Stores" category for 2008 by Entrepreneur Magazine.


Prior to Wireless Toyz, Simtob earned acclaim as a business innovator during the 1990s when he cofounded Talking Book World Corporation, America´s largest chain of retail outlets specializing in renting audiobooks. He built the company from a concept in 1993 to a 45-store chain that, by 1999, ranked number 164 on the Inc. 500 list of fastest-growing privately held companies. Each year under his leadership Talking Book World was named among Entrepreneur´s top 500 franchises. Previously he was co-founder and president of TINT KING, an automotive tint shop based in London, Ontario. Simtob oversaw the sales, production, accounting and computer systems for the venture and sold the business in 1996 when it was the number-one tint shop in southern Ontario. He has also provided his strategic planning, management, organization, franchising and sales expertise as a business consultant for a variety of retailers and business-to-business clients.


Simtob is a licensed Real Estate commercial broker and is involved in developing small retail commercial centers in Michigan and Arizona.


He is Vice President of Yad Ezra non-profit food bank and is active in a range of business organizations, including the Jewish Entrepreneurs Network and the Entrepreneurs Network of Michigan. He attended the University of Western Ontario, with a major in economics and business.