Steve here; today I’m going to share with you What I Would’ve Done Differently. Though the list is endless, I’ll key in on one point.
In 1991, I signed up for my first franchise, and in 1992 I opened it, knowing next to nothing about what I was doing. I ended up in a spot that was extremely lucrative and we did very, very well in sales. My lease mimicked by franchise agreement, which was 10 years with two five-year options. Not realizing that leases do eventually come to an end, I ended up a business performing in the top five of the concept fleet; we were probably number three. The value of my business at its peak, and I went right through it. By the time I realized I should have sold, it’s now too late.
I had gone to the end of my 10 years and actually through the first five.
The thing I would do differently is: I would understand that every business has a lifespan, especially a business that’s going to lease space. I would realize that at some point a buyer has to have enough time left in that lease that then they could buy, make their money back, and possibly have the option to sell the business at some point. Really, having a plan; and that’s where I went wrong altogether. I wanted to own my own business, but not thinking ahead, not having any plan in place to extract the maximum value from that store.
In 2006, I ended up closing that store. I had a store that probably in 1998 was worth in excess of a million and half dollars, and in 2008, I closed it. What I would do differently? Have a plan.
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