ready to take the plunge... need advice

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imaluma

imaluma

SGF, Supreme Grumble Framer
Joined
Jun 17, 2005
Posts
1,691
Loc
I left my heart in san francisco/ st louis
I have spent too much time being underpaid and unappreciated. Someone with my skill level should not be left out to dry with the laundry. Now that my unemployment is imminent I need advice on what I need to do to start my own business. I contacted a franchise some time ago and got no response. Perhaps my email was lost? I thought going with a franchise would be the way to go for all the start up support. But now I am not so sure. If I am not getting responses is there some reason I might not be a good candidate? I don't have any real liquid assets to speak of and only half decent/pretty good credit. But I have been in the industry since 1995 and have pretty darn good references. Where do I begin seeking out a business loan? How do I choose a location? How do I figure out startup costs? What amount of material is recommended for initial inventory? How do I begin marketing so I am not sitting with the doors open waiting for customers?

I need help desperately.
 
Lenders need assets so the first thing to consider is your credit lines on credit cards. About $50,000 would put you in business with a decent chance of survival if you buy right.
 
For starters:

Find out from your chamber of commerce if there is a SCORE program in your area or check the internet http://www.score.org

See if there is an Urban Hope program in your area to help write a business plan.

Check with an area tech school or college on any business programs that will help you write a business plan.

Find out if any shops in your area are ready to pull the plug.
 
Start by talking to financial instutions to see how much of a loan you can get and how comfortable you are with the monthly payments. They will advise you to make a business plan.

Your budget is hard to figure out of course. You'll need money for equipment, but if you look carefully you can buy used equipment. You'll need money for interior design of your store. Have you looked into starting a home based business? It will at least cut the costs of overhead. Con is that not all suppliers (LJ among them) will deliver to you.

Just because you are good in framing, does not mean you are good in business. For me, having good business sense is very important. It is not that easy to start any type of business.

If your budget allows it; hire a consultant. I don't think I would go franchise. It might help you at first, but your choices can be very limited. We had 'the great frame-up' here in our town. Very nice guy. They recently went out of business, because the demands of the franchise were too much. They were stuck with location choice, choice in suppliers, framing equipment. When it was time for them to sign up on the new lease (another 5 years; had to be open 7 days a week) they decided to close.

Do you have enough money to live for a few months. For me to have that build in is very important when you start. You cannot expect to make a decent living right away.
Most start up businesses don't make a profit in the first year(s). Don't expect to get your investment back quickly.

I don't mean to discourage you, wish you all the luck and best with starting up but there is a lot more to a business than the framing part.


Ylva
 
Ylva said:
Start by talking to financial instutions to see how much of a loan you can get and how comfortable you are with the monthly payments. They will advise you to make a business plan.

Your budget is hard to figure out of course. You'll need money for equipment, but if you look carefully you can buy used equipment. You'll need money for interior design of your store. Have you looked into starting a home based business? It will at least cut the costs of overhead. Con is that not all suppliers (LJ among them) will deliver to you.

Just because you are good in framing, does not mean you are good in business. For me, having good business sense is very important. It is not that easy to start any type of business.

If your budget allows it; hire a consultant. I don't think I would go franchise. It might help you at first, but your choices can be very limited. We had 'the great frame-up' here in our town. Very nice guy. They recently went out of business, because the demands of the franchise were too much. They were stuck with location choice, choice in suppliers, framing equipment. When it was time for them to sign up on the new lease (another 5 years; had to be open 7 days a week) they decided to close.

Do you have enough money to live for a few months. For me to have that build in is very important when you start. You cannot expect to make a decent living right away.
Most start up businesses don't make a profit in the first year(s). Don't expect to get your investment back quickly.

I don't mean to discourage you, wish you all the luck and best with starting up but there is a lot more to a business than the framing part.

Ylva
Click to expand...

Just two weeks ago....

Ylva said:
I am completely new to this but will be taking over an existing framing business soon. We are in the middle of buying equipment but also designing the store itself. I would like any suggestions anyone can give me. Is there anything you would change in your own store if you could? :help::help::help:
Click to expand...

Welcome to the framing business!
 
A really important place to start is the business plan. Without a good business plan showing that you are going to make money and how you are going to do it, you will have a fun time getting financing. There are free models all over the internet so you can calculate all your monthly expenses, break even analysis etc.

I recently applied for an SBA Micro loan,(10-50k I believe) and being 21 years old these people only look at numbers.(I was declined several times) After talking to the lady who presented my information to a certain committee she said my income credit and debt ratios were not looking good.

After consulting an expert (my father who works for the SBA in a different state) we plowed out the best business plan ever. When it was presented and they read the business plan they basically didn't even flinch in saying yes.
 
Hi Steve,

I meant I am new to the framing business... If you read my other posts I think you can tell I am not new to setting up a business/being in business. But no, I did not own a framing business until last Friday.....

Basically setting up any business has some of the same requirements. Starting with reviewing a budget and get a business plan. I don't claim to be an expert. But I do know you need some start up money in order to stay in business and don't expect too much for the first year.

But, glad someone is paying attention!!!!:beer:
 
Two thoughts come to mind. First is how this could affect your family dynamics. Being the owner means that in many ways, you have less control of your time. If the alarm goes off at 2am, the security company is going to be calling you not your employee (if you have any). Will your children come to work with you? What if they are too sick to go to school?

Second is what is your risk tolerance? Are you the type of person that is able to make a decision and live with the consequences even if they are not what you expect? How well do you handle stressful or unexpected circumstances? Have you always dreamed of having your own shop or is this a knee jerk reaction to your current circumstances? If it's been a dream, that in and of itself will take you a long way toward success when the challenges come.

All the Best!
 
Ylva said:
I don't think I would go franchise. It might help you at first, but your choices can be very limited. We had 'the great frame-up' here in our town. Very nice guy. They recently went out of business, because the demands of the franchise were too much. They were stuck with location choice, choice in suppliers, framing equipment. When it was time for them to sign up on the new lease (another 5 years; had to be open 7 days a week) they decided to close.
Click to expand...

How does that saying go...We mock what we do not understand?

As an owner of a Deck the Walls, who is owned by the same parent company of TGFU, I have to laugh at your comment. The basic demands of our franchisor (and I would guess most other franchisors in any type of business) is that you uphold the proven business standards and you pay your royalties. If that is too much of a demand for someone, they should not buy a franchise.

You are not "stuck" with location, equipment, suppliers, or any lease options. They have people who make educated recomendations, but ultimately the owner makes the final desicion.

A franchise provides a proven system, the franchisee is the one who has to make the system work.
 
imaluma said:
I have spent too much time being underpaid and unappreciated. Someone with my skill level should not be left out to dry with the laundry. Now that my unemployment is imminent I need advice on what I need to do to start my own business. I contacted a franchise some time ago and got no response. Perhaps my email was lost? I thought going with a franchise would be the way to go for all the start up support. But now I am not so sure. If I am not getting responses is there some reason I might not be a good candidate? I don't have any real liquid assets to speak of and only half decent/pretty good credit. But I have been in the industry since 1995 and have pretty darn good references. Where do I begin seeking out a business loan? How do I choose a location? How do I figure out startup costs? What amount of material is recommended for initial inventory? How do I begin marketing so I am not sitting with the doors open waiting for customers?

I need help desperately.
Click to expand...


Reading what you posted I think that a franchise would be very beneficial to you. THe thing that is going to work against you is that you do not have any money and your credit is only half decent, whatever that means.

Franchisors can help you arrange financing but they don't actually do the financing and in today's economy, banks are not as willing to give out money like they have in years past.

If you are interested send me a PM and I can get you in contact with the person you need to talk to at FCI (DTW and TGFU)
 
Ylva said:
... I don't think I would go franchise. It might help you at first, but your choices can be very limited. We had 'the great frame-up' here in our town. Very nice guy. They recently went out of business, because the demands of the franchise were too much. They were stuck with location choice, choice in suppliers, framing equipment. When it was time for them to sign up on the new lease (another 5 years; had to be open 7 days a week) they decided to close.

Ylva
Click to expand...

Just to set a few things straight:

1. Nobody is "stuck with location choice." Franchisors make recommendations based on demographics, prevailing rental rates, etc. but in the end it is the choice of the franchisee as to the location.

2. Franchisors generally have preferred vendors they use because of discounts based on buying power. Any franchisee is free not to use any or all of them, and are free to use other vendors. Same is true of equipment.

3. I don't know about other franchises, but The Great Frame Up has not been required to be open seven days for years now. Some locations, mainly in lifestyle centers or in malls, may have hours imposed on them by the landlord, but not by the franchisor.
 
I work at a franchise now, and from what I am able to see I think it would be a good match for me.

I don't think I would stay where I am at now simply because there are too many frame shops already and it does not sound like good business practice to open up shop where the market is so saturated. I am willing to relocate but right now do not have the funds at all. I really just need to start making that business plan.
 
If only....if only. You would be appreciated and appreciated here, but I understand the cost of relocating all the way out here. The offer still stands. Sure would be less expensive than buying a franchise, and you wouldn't have to run a business, just be the Amazing Framer that you are!! Four Corners....I tried.

If anyone that needs a Dream Framer is reading this, in the St. Louis area, you can't go wrong with Imaluma. Having her here in my shop for a week was one of the most delightful experiences I've had in 30 years in this industry. Ask EllenAtHowards!! We saw what Imaluma can do, how talented and diverse, and valuable she is. Reliable, responsible, amazingly intelligent, loving mommy, funny and witty, a good designer/great with customers, fast learner (I mean fast!! Show her once....!), organized, fastidious. You couldn't go wrong.

If only...if only....

Sarah, I wish the best for you. You deserve nothing less.
 
Tim and FramerDave,

Did not mean any offense to any franchisers. This was what this guy told me and I didn't look into it because it didn't apply to me. The requirement of his open hours came with the location (strip mall) is what he said. (Close to big supermarket).

I was sorry to see them go out of business as it seemed to me they were doing a lot of business (and no other framers in town). But maybe framing was not what they wanted in the end.... don't know.

Again, this was just what he told me.

Did not mean to ruffle anyones feathers! Honestly. But if I did offend any of you, please accept my apologies.

Ylva
 
FramerDave said:
1. Nobody is "stuck with location choice." Franchisors make recommendations based on demographics, prevailing rental rates, etc. but in the end it is the choice of the franchisee as to the location.
Click to expand...

Dave, maybe you can pass this on somewhere where it will help ...

As I think you know I looked into TGFU and was very impressed, but decided for reasons expressed in other threads to go independent.

BUT, one of the biggest "problems" I saw was that the location recommendations from the franchisor did NOT take into account Local market conditions. Statistical demographics are not enough knowledge and local competition seems to be ignored. As you say, the franchisee is free to choose a different location, but in most cases one of the reasons they ARE a franchisee is that they lack knowledge/confidence to "buck" a recommendation from an "expert."

I believe the choice of location was a significant factor in the TGFUs I've seen close.

Just one man's opinion. ;)

To Imaluma and others ... whether opening a franchiose or an inpedendent shop, talk to LOCAL business people and get a feel for LOCAL market conditions. Your location decision is you MOST important decision.
 
NO feathers ruffled here, I just wanted to clear up some mis-information. Many time when someone who owns a franchise goes out of business they blame it all on the franchise because it is an easy way out of saying that they just did not have what it takes to stay in business.

I don't want to say that any franchise does not have it's faults but, there would not be a franchise if there was not a proven system.
 
"After consulting an expert (my father who works for the SBA in a different state) we plowed out the best business plan ever."


understand that they are rather business specific, BUT any chance of this opus being posted on TG????? everyone could/would then benefit from advice...perhaps use this example as a spring board to bigger things? :icon21:
 
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