Interview with Don Daszkowski, About.com guide to Franchises
Don Daszkowski, is the About.com Guide to Franchises. President and CEO of Business Mart, Inc. and the Franchise Buyers Network has owned and operated many of his own businesses for the last 14 years. He has successfully started and sold 5 of his own businesses and now dedicates his time to helping entrepreneurs start, manage and buy businesses and franchises. Here is what I found out about Franchising:
Don: Hi Cristian, thanks for having me. I am the Guide to Franchises for About.com. I am in control of all the content for franchising. About.com is owned by the NY Times. I am also the Founder and CEO of BusinessMart.com. BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help business owners on their journey to start your own business, sell an existing business or open a franchise. FranchiseBuyersNetwork.com, which is owned and operated by Business Mart, Inc., helps individuals looking for information on opening a franchise or business opportunity and guides them on a path to success.
Cristian: Ok, more about this later, let’s begin with how you started your first business. You told me you were a college freshman when you started your first business, what was it?
Don: My first internet business was a New York City Nightlife web site. This web site allowed individuals who did not have a personal relationship with a promoter to gain access to exclusive “guest lists” online. The site also had nightclub reviews, articles, interviews and most importantly a calendar of NYC events from Monday – Friday. The web site was a big hit. I sold it to focus on bigger projects.
Cristian: How did you come up with the idea?
Don: I had access to many promoters and nightclub owners and many people called me to help them gain access to nightclubs and lounges. I figured having a virtual guest list would be a great way of turning this into a business. Nightclub owners and promoters paid to be on the site.
Cristian: You also worked for top marketing agencies in New York, then decided to leave the corporate world and start your own business. How do you take this kind of decision and why?
Don: At the time I worked at these agencies I was also running my web site and building up another ecommerce business. I did not leave the corporate world without having something lined up. I always plan for the future. I am a firm believer of having something lined up before you “jump ship”…. But after “jumping ship” (leaving the corporate world) I never wanted to go back. Being an entrepreneur is in my blood.
Cristian: I think with the current crisis, many people are facing the same – being laid off. Is buying a franchise be a good solution?
Don: You are right, many people are losing their jobs right now but the real scary thing is that companies are not hiring. I think now is a time we are going to start to see many more entrepreneurs pop up. There are many people that will look back 10 or 20 years from now and be very happy they were laid off because this will have given them the opportunity to follow their dreams and start their own business. To answer your question… Yes… Buying a franchise is a great way to get into business for yourself because you are buying into a proven system.
Cristian: What are the advantages of a franchise during the crisis?
Don: There are many advantages. As I just mentioned, you are buying into a proven system and you have a partner to count on that has a lot of experience already. Your partner (the franchisor) has already opened many units and will help you to avoid all the mistakes that they have already discovered. Also, franchise companies usually do tons of research before they agree to open in a certain location. They check the demographics of the area and many other factors that will ensure success. I find that many people opening a mom-and-pop business do not do the required research and this many times causing them to fail.
Cristian: You told me that you work with a network of franchise professionals so what are the most important trends nowadays, what works and what doesn’t?
Don: I encourage people to always get involved in an industry that you have some past experience in and find out what the real expectations of the franchise owners are. Ask how many hours you will be expected to spend on any given week. The last thing you want to do is get involved in a business you know nothing about and be expected to work 80 hours a week doing it.
Cristian: You are the president and CEO of http://www.businessmart.com/ Who is your targeted reader/user?
Don: Our target users are individuals and entrepreneurs who are looking to start a business or buy a franchise. We have an enormous resource section located at: http://www.businessmart.com/resources/ that helps entrepreneurs and existing business owners. We also have an entire section of qualified vendors located at: http://www.businessmart.com/free-quotes/ that offers everything from POS Systems, to web site design to payroll services. Basically everything a small business owner needs to run a small business.
Cristian: I’ve noticed a section for selling businesses. How realistic is to buy a good standing business “online”?
Don: It is very realistic. We currently have listed thousands of businesses for sale in the US, Canada, and the UK. Researching buying a business or selling a business online has become the norm. People rarely pick up the newspaper classified sections to find a business for sale anymore.
Cristian: Any advice for people looking to buy a business now?
Don: I suggest with all business transactions that you do your due diligence and make sure you are a paying the right price so you can get a good return on your investment. Many times it is good to get professional guidance from a business broker or consultant.
Cristian: About franchises, what would be the typical capital needed to start?
Don: You would need at least $25,000 to talk with a franchise consultant to discuss your options. There are some business opportunities that are under $10,000 that are available but usually you can not generate a full-time income from these opportunities.
Cristian: And what are the skills you need to have?
Don: Every franchise opportunity requires a different skill set. I can say, if you have management experience you can qualify for almost any franchise opportunity.
Cristian: What are the typical steps when buying a franchise?
Don: The first step is to fill out a profile sheet for the franchise company. This will help them evaluate you and see if there is a fit. If there seems to be a fit between the 2 parties the next step would be to attend a Discovery Day. (To learn what a discovery day is visit: http://franchises.about.com/od/franchiseglossary/g/discovery-day.htm) If you decide you are ready to buy, the next step would be to contact a franchise attorney to review all the documentation you receive from the franchisor.
Cristian: Ok, what about selling a franchise?
Don: If you need to sell your franchise I suggest you visit http://www.franchisebuyersnetwork.com/sell-my-franchise.php
Cristian: What is http://www.franchisebuyersnetwork.com/ ?
Don: FranchiseBuyersNetwork.com, which is owned and operated by Business Mart, Inc., helps individuals looking for information on opening a franchise or business opportunity and guides them on a path to success.
Cristian: By the way, what would be the most famous or successful franchise Worldwide?
Don: McDonald’s is the most successful franchise in terms of the most units worldwide. It is estimated that in the next 5 years Subway might have the most units and also Subway is always in the top 5 franchises in Entrepreneur’s Franchise 500. So it is really a toss up between these two.
Cristian: Do you think that franchises are a good option Worldwide or mostly for the US market?
Don: I think a franchise concept can work anywhere in the world. Of course certain franchise will not work everywhere, but as far as the concept of “franchising” this can work anywhere as a successful business model.
Cristian: Besides your about.com guide what would be the most important knowledge resources about franchising?
Don: The International Franchise Association is a great resource. The IFA was established in 1960 by William Rosenburg, the founder of Dunkin Donuts. The IFA is the largest and oldest global franchising organization. It is a non-profit association that represents more than 1,300 franchise systems as well as over 10,000 franchisees.
Cristian: Any advice for people willing to start a franchise?
Don: 1. Research more than one franchise company in the industry you are interested in and compare notes. 2. Do lots of due diligence before you sign a franchise agreement and make your investment. 3. Speak to other franchisees in the system before you buy. 4. Use a franchise attorney so you are protected in case you have issues with the franchisor down the line.
Cristian: So what’s next for you? You started and sold 5 successful businesses, you share your knowledge with other entrepreneurs, what does the future look like?
Don: I will continue to help entrepreneurs fulfill their dream of business ownership. I enjoy helping people change their lives. Hopefully within 5 years I will have helped thousands of entrepreneurs start businesses and franchises via our web sites http://www.BusinessMart.com and http://www.FranchiseBuyersNetwork.com. I also have a pretty flexible schedule so I hope to improve my golf game. I also launched a golf related site recently which is http://www.PublicGolfCourses.net. I am working on making this a great resource for golfers to find and review golf courses all over the world. Thanks for taking the time to chat.