Prospective franchisors are often thwarted in their entrepreneurial aspirations by a lack of funding, and now there is an answer for the franchisor that is looking for a business partner. Shareafranchise.com is akin to a dating website in that it brings franchisors and investors together to share ideas and form partnerships. Founder Darwin Ramon explains the site as a way for people to share in the work and upfront financing that can often cripple a business idea before it gets off the ground. The site works in a similar fashion as a dating site, by franchisors or investors creating profiles, describing their business interests and indicating their level of investment in an attempt to attract like-minded associates for their projects. For more on this continue reading the following article from TheStreet.
The inability to find funding, whether for a start-ups or a business looking to expand, is the primary reason potential franchisees are refused a license to operate.
Shareafranchise.com is a new tool that seeks to fill that gap by creating what is essentially a dating site for entrepreneurs. The site, launched in June, is a virtual community where franchisees can find people willing to invest in and operate a franchise together.
The site has another element: Franchisors can partner with it to create a so-called closed community in which there is more control over who partners. The franchisor acts more as a gatekeeper in this instance.
Darwin Ramon, the site’s founder, explains how the site works and makes a few suggestions on how to best find a long-term partner:
Why partner to own a franchise?
Ramon: Usually when you launch a business there is an overwhelming amount of work. If you have another person involved, two individuals can do more so you get a boost of productivity.
The investment [in a franchise] is huge. Before you actually make a profit, all of this money is required. It’s usually not within the budget of one single person.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
A partner is not only somebody who can bring money — you can partner with someone who has a lot of experience or is willing to work certain hours. You can have many arrangements that complement your end.
What should franchisees be able to come to the table with before they even start their search?
Ramon: They need to search for a franchise. It seems obvious: You may like Starbucks(SBUX) [and therefore want to own one], but when you start looking you can see which other franchises offer the same services as Starbucks. Maybe the person didn’t want a Starbucks, maybe they wanted a coffee shop franchise.
There is no easy answer to finding a partner. What is more important is that you know what you are getting into. If you like coffee, that doesn’t mean you should get a coffee shop franchise because coffee is interacting with people. Do you like interacting?
It may mean that you end up with a franchise that’s different than what you first had in mind. The way the site is — you can offer your profile first in different franchises. Keep your doors open to more possibilities and let other people know what interests you.
Discover your passions and finding what business is compatible with your passion. That is the most important thing to find.
What are some things to keep in mind when searching for a partner?
Ramon: The most basic thing is to [find one] compatible with you at a personal level, because you need to have the same [goals]. The second most important is for that person to complement what you are missing.
What the potential risks?
Ramon: You’re meeting with somebody that is not someone you know. There are many ways to get taken advantage of.
How does it work?
Ramon: You create the profile and in the profile you put your interests, objectives and how much you have available to invest. When you start searching for a partner you can search by franchise or by local area.
Publishing your profile and first interest is free, but [after that] for each added interest we charge $2 for two months to have that in your personal profile. Users can have up to 10 interests on a profile.
This article was republished with permission from TheStreet.