Build, Buy or Franchise? The Best Way to Jumpstart Your Entrepreneurial Journey with Tim Vogel

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire. Brought to you by the HubSpot. Podcast Network, the audio destination for business professionals with great shows like Side Hustle Pro. Today, we'll be breaking down whether to build, buy, or franchise, the best way to jumpstart your entrepreneurial journey. To drop these value bombs, I brought Tim Vogel into EO Fire Studios. Tim is a seed planter. He loves helping people and businesses grow. His favorite question, what's your superpower? When people work with their natural genius. They deliver their best results.

0:35It's that simple. As an entrepreneur and CEO, he has an extensive background in management, customer service, innovation, and starting and running companies. And today we'll be chatting about starting your journey as a franchisee, the pros and cons of starting a business from scratch, pros and cons of buying a business, and personality traits that make for a good franchisee, and so much more. And a big thank you for sponsoring today's episode goes to Tim and our sponsors. The Gold Digger podcast hosted by Jenna Kuchar is brought to you by the HubSpot podcast network, the audio destination for business professionals.

1:09The Gold Digger podcast helps you discover your dream career with productivity tips, social strategies, business hacks, inspirational stories, and so much more. One of my favorite recent episodes is titled How I've Built an Unmatched Team Culture, an insanely important topic for all business owners to dive into. Listen to Gold Digger wherever you get your podcasts. Many EO Fire listeners have launched non-food franchises and Franbridge Consulting has guided them. Franbridge's founder and frequent EO Fire guest, John Ostenson, has done more placements than any other in the country and his service is free.

1:40Sign up for a consultation with John or get a copy of his book, Non-Food Franchising at FranbridgeConsulting.com. Tim, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with? What's up, Fire Nation? I'm so excited to be on. I appreciate you having me here. And you can go a lot of directions with this. But for me, I think the top two biggest factors in successful entrepreneurial journey is number one, the optimism of the entrepreneur and the timing of the business. Fire Nation, two keys. And guess what? The value bombs have just started because we're talking build, buy, or franchise, the best way to jumpstart your entrepreneurial journey.

2:30And Tim, let's just start off by being honest. Being an entrepreneur is a risky adventure, to say the least. So I want you to share how starting our entrepreneurial journey as a franchisee can significantly de-risk this adventure. Yeah, I think it's really important. as people start to think about this entrepreneurial journey, just like I did, you kind of go through a bunch of options. So there's, hey, do I go out and buy an existing business? And that has a whole list of pros and cons, which I think we can dig into. Do I start a business from scratch, which has its own list of pros and cons? Or there's something that's really in the middle there, which is buying a franchise.

3:16franchise, you know, so it's kind of like buying existing business, but you haven't built it yet. So you're kind of building it from scratch, you're building the team. And, and the combination that franchising allows for you to get both of the best worlds is you can enter the entrepreneurial world without a whole bunch of risks that are embedded in buying a business or actually building from scratch. Tim, I think these are really important conversations to have, but it's also important to talk about the pros and cons of starting a business from absolute scratch. So let's start with the pros of starting a business from scratch.

3:56So that's exactly what I did. And in my journey, it started with always wanting to be an entrepreneur, but never having the confidence to do it. And so I went out and got a series of jobs. And I kind of think of my roadmap as working with a big company, then a medium-sized company, than a startup company to finally develop the confidence to go out and do my own thing. So that was the foundation I had already started with. When I built from scratch, I went out and there started this business. It was a mobile pet grooming business at the time. It wasn't only like three months into the journey that I thought to myself, oh my God, what have I done?

4:28And I don't really have a clue what I'm doing, even though I started from the bit, you know, having all of these kind of business experiences. And so there's a lot of stuff that's really invisible to you when you start your own business, because you've got to you've got to think about kind of, you know, what's the market? What are the market needs? You know, what's the culture I want to build? What are the systems I need in place? What is that product market fit? There's just a whole bunch of pieces to that. And so, you know, you don't know what you don't know. And that's one of the biggest challenges.

4:59Now, I think some of the massive benefits and the reason I went into it is freedom. And I think a lot of people think about taking the entrepreneurial journey because they want greater freedom. And so freedom to choose which direction I want to go, freedom to create a culture that aligns totally with me, freedom to pursue a mission that spoke directly to my value system. So freedom is a big part of that. And you do have all of that flexibility. The other reason that I think most people, and for me for sure, wanted to take the entrepreneurial leap is I wanted to make more money. So I wanted to create abundance, and I felt like I knew the best way to do that.

5:37And so that, you know, freedom and abundance are kind of, I think, two big reasons. And the pros why people, you know, start or really jump into that entrepreneurial journey. But once you get into that, you realize there's a whole lot of complexity there. There's a whole lot of stuff that you don't know that's invisible to you. And that's where a lot of that risk lies. Well, and let's just kind of segue into the con. So what are a lot of the cons of starting a business from scratch? When I started kind of the optimism and timing, I say optimism of the CEO or the founder is one of the key ingredients.

6:12It's because you have to have the energy and the juice to overcome the series of hits that are coming your way. So and what I mean by hits are, you know, I didn't know that. Oh, my God, I didn't realize it required this. I didn't realize I didn't have this skill set. I don't know why I'm failing. I have to learn more about it. And so a lot of the cons are the invisible or unknown things. And I see this a lot in business where we hire someone from a large organization to bring them into an entrepreneurial organization. A lot of times you find that there's kind of an unfounded confidence. And it's because there's a bunch of invisible systems behind the scenes that's invisible to that employee even that are helping them operate successfully.

6:54And so there's a lot of support stuff there that is taken for granted. And when you start a business from scratch, not only do you have to see what's invisible, like, oh, my God, I need to build these things, but then you have to have the competency to go about and build those things, learn about those things, bring on the right people, motivate those people in the right way. And so I think the biggest con is there's for everybody, there's just going to be a massive learning curve in the beginning that you have to have a lot of energy and you have to be really connected to your vision, your mission, your values to get you through those.

7:28So you have to be eternally motivated. And so when we started this mobile pet grooming business, I quickly realized it wasn't scalable. It wasn't profitable. And hiring staff was almost impossible. And so I had a big decision to make. And I really doubled down and said, you know what? I'm going to bet on myself. I'm going to believe in myself. And there's a huge opportunity in this industry if I can crack this nut or solve these problems. And I did. But some people are going to laugh at this. It took me almost 10 years to find product market fit. And I stuck with it. And I iterated. And I improved.

8:05And I iterated and improved to create what I think now is this amazingly scalable model. And proofs in the pudding is how we're scaling today. But that kind of optimism and energy is so necessary to continue to keep you on the path to getting to that success and product market fit. So you told us a quick story about your mobile PEC grooming. Before we move on, I want to kind of stay here with the idea of starting a business from scratch. which what's another example that maybe you've been through or somebody you've worked with or just observed from afar who started a business from scratch? Kind of describe that and maybe mention one or two pros and cons of that as well.

8:47Because I really want to paint this full picture for our listeners of what that looks like. We've actually started three businesses on this journey to ultimately getting to this last business that we're at. So we started a mobile pet grooming business originally. And there was a whole bunch of learning there. The second business we started from scratch was a grooming salon. And so the pros of that is it solved a bunch of problems for us. It really allowed us to create greater efficiencies. It allowed us to have a better product market fit and ultimately a better outcome for that business. So starting from scratch, we didn't have any of the constraints we had when we originally built a business and we didn't have to keep the mistakes that we started with in the beginning.

9:32So the pro of starting a business from scratch really can be you don't have the luggage or the baggage that comes along with an existing business. The con is it's capital intensive. It takes a lot of capital to get it going. There's a ramp up time. And then there's a learning process also where you have to figure out all of the little details about a business to create scalability. And so the pro is you don't have the baggage. The con is there's a whole lot of decisions and figuring out to make, to do, and a learning process that you go through to get you to where you ultimately want to be. Fire Nation, really important things to consider, especially when you're thinking about starting a business from scratch.

10:10We have a lot of important things to talk about when we get back from thanking our sponsors. If you're anything like me, then you're looking forward to a lot of outdoor time this summer. I'm talking about hitting the pool, going on epic hikes, and maybe even getting in a few pickleball matches. But in order to do all that, you and your team need to work smarter, not harder. That's why we're so excited about HubSpot's integrated AI tech. It's helping teams automate the more tedious parts of running a business. With AI-powered tools built into HubSpot's CRM, you can do research, pull reports, and write copy in a flash.

10:45In fact, recent research shows that marketers are already slicing time spent on manual administrative tasks in half thanks to AI. From five hours to 2.5 hours a day, which amounts to almost four weeks of saved time per year. And with four weeks of your time back, you could be enjoying a lot more pool time, hiking, and pickleball. So what are you waiting for? Learn more and get started today at HubSpot.com. More and more entrepreneurs and investors are discovering the awesome franchise opportunities that exist outside of food. Franchising can simply be the better path. And interest in franchising is at an all-time high.

11:21Lucky for you, John Ostenson, founder of Franbridge Consulting and a frequent EO Fire guest, is here to help you explore the premier franchise opportunities today. John and his Franbridge Consulting team are part of the largest brokerage in the U.S. and have vetted the market thoroughly. Franbridge is hands down the premier source for the best opportunities in the non-food franchise world. They represent every type of non-food franchise, from healthcare to dumpsters, youth sports to business services, specialized senior care to pet grooming to insulation and floor coatings. John has served as an Inc.

11:52500 franchisor, a multi-brand franchisee, and he does more placements than any other in the country. Sign up for a free consultation call with John today or get a free copy of his book, Non-Food Franchising, at FranBridgeConsulting.com. That's FranBridgeConsulting.com. So, Tim, we're back, and now I want to talk about the pros and cons of actually buying a business. Let's talk about the pros first. And again, I love these real world examples. Going out and buying an existing business, you get a host of positive things. First of all, a proof of concept. So that business has employees, it has customers, it has processes to manage them all, and the model delivers profitability.

12:37At least that's what you should be looking for when you buy a business. So another pro is there's no really ramp to that revenue generation. You are buying an existing ongoing profit center. And then you can really do your calculation on return on investment. You know, it's got the people, process, profit all in place. I think the other part of it is when you identify a business that you want to buy, you have the opportunity to say, if I make this change or that change, I could potentially increase the revenue. So I'm buying it for this value, but I know if I modify it in these ways, then I can then accelerate it beyond.

13:13So, you know, another perfect real world example of that is we just recently sold our mobile grooming business. That was the thing that started it all. But it's not what we do today. And it's not the model we have. But the people we sold it to have a couple innovations in their own mobile grooming business. Like one of them is they purify their water, which is a great marketing and a healthy thing for the dogs. So they are going to take our existing business, layer their technology and differentiator on the top. And I think they'll ultimately create a better margin out of that business. So they're in a perfect position to acquire that business and scale their business while creating a better return on the business that they bought.

13:50So I want to talk now about the cons because there are some negatives about buying a business. Let's hear some of those now. You don't quite know what you're getting. You are buying someone else's culture. You're buying someone else's team. You're buying someone else's processes. And so I think one of the challenges is, you know, it's just hard to really know what you get until you really get into it. I think the bigger challenge of buying a business is finding a business. So you've got a specific location you want to operate in. You live in a specific area. You probably have certain passions and specific niches like, hey, I want to be in a service business.

14:25I want to be in a manufacturing business. I want to be in a food business. Whatever category you want to be in, there's probably not a lot of options out there for buying those businesses or buying a business that is quite a right fit for you. So I think the next step you need to go to is identify a business that you'd like to buy from someone who's operating and not looking to sell. And I think that becomes a real con. That becomes a real challenge because what would motivate someone to even answer the phone? What would motivate them to sell at a price that's fair? And so finding a business that's right for you in the area that you want can be really challenging.

15:00I think that's a con of trying to buy a business is ultimately, I think what a lot of people do is start to compromise on the thing that they really want to do, the location they really want to be in the culture, because this is the business that they're able to buy, not the business that they want to buy. I think another big challenge with buying a business is the cash outlay. Oftentimes, it's a huge investment up front, which takes quite a while for that return on investment to happen. And so, you know, when you're thinking about these businesses, you know, you're putting a lot of capital at risk right out of the gate with the hopes that all the things are what they seem they are.

15:37Fire Nation, I hope you're realizing that there's both sides to really anything you're going to do as an entrepreneur, whether you're starting a business, whether you're buying a business, whether you're becoming a franchisee. franchisee. I mean, there's going to be pros and cons to both, but you need to weigh it with where you are at in your life and what you want to take on as a risk profile based off of these conversations we're talking about. Now, one thing that could really help, Tim, and this is for Fire Nation who's listening right now, is that you believe there are key personality traits that make a good franchisee.

16:11So maybe if Fire Nation's like, I kind of fit in with that personality trait bubble. This could really help them make a decision. So let's talk about those traits now. Going back to kind of why people want to take the entrepreneurial journey, I think it's around freedom and abundance. But not everybody's built the same. You know, if you look at kind of the EOS system or traction system, you know, you've got visionaries and you've got integrators. And, you know, depending on where you're on the spectrum, if you're a visionary, I think going and building a business from scratch makes a whole lot more sense because you've got a very clear idea of exactly what you want to build and where you want it to go.

16:50But if you're more of an integrator, an operator, someone that can scale things, franchising makes a ton of sense. Because really what the partnership is, is the visionary work's been done. And really what they're looking for is the operator, someone who can execute. And if you're good at executing, the time to profitability, abundance, and freedom is significantly reduced because the market is worked out, the model is worked out, and you've got this amazing support team behind you. So I think integrator is one lens to look at this through. I think another lens to look at through to be a great franchisee is coachability.

17:29Am I coachable? Am I willing to learn? And it's really, I think that underneath that is really kind of my level of self-awareness, where my skills are, where my skills aren't, and how can I apply those to get the best results for this? So am I willing to learn that system and can I execute that system? I think, you know, kind of a third really important skill is when you think about execution for most franchises, one of the winning skills is, can I build high-performing teams? Can I attract the right people? Can I motivate them? Am I good at training? Am I good at alignment? You know, the high performing teams is really a key to consistent profitability.

18:11And then I think the last one, and it kind of goes with the integrator one, is, you know, someone who loves to scale. I want to build something. And so franchising really allows you the ability to start small and build and build and build and build to really ultimately potentially creating an empire. So I love building things, not figuring things out necessarily, but scaling things and making them bigger. I think those are some of the key characteristics of a great potential franchisee. I love breaking those down. And the two that I really want to jump back to, Fire Nation, is are you an integrator?

18:43Are you coachable? These things can really help when it comes to buying a business, to being a franchisee. Now, Tim, we talked about a lot of awesome stuff today, the pros and cons of buying a business, of starting from scratch, the personality traits that makes a good franchisee. What is the one thing that you want to make sure Fire Nation gets from our conversation today? A lot of people have a narrative in their head about what franchising means, what buying a business means, what starting a business means. And I'd say, don't let the ego drive the bus. Let the desired outcome drive the bus.

19:19Because when you get into franchising, it offers all kinds of really viable pathways to those two outcomes that you want, which is freedom and abundance. It allows you to de-risk your capital because you can start small. Like say, like we have a franchise called Scent Hound. One location's kind of 250 to 300 ,000 to get to profitability. You can do one, then two, then three, then four. And a lot of brands are that way. So you don't have to bet the farm right up front. And so I think there's a lot of benefits to kind of opening your mind set a little bit about what are all the opportunities out there and where do I want to get versus what is the story I have about each of these different venues.

19:59And if Fire Nation wanted to learn more about you, if they wanted to connect with you, what is your call to action for our listeners today? Feel free to reach out to me on LinkedIn. It's just Tim Vogel. You can check out our website, which is ScentHound.Franchising.com or check us on Instagram, which is ScentHound also. So there's a lot of places you can go kind of get to know our backstory or just reach out to me directly. I'd love to have a convo with you. Fire Nation, you are the average of the five people you spend the most time with. You've been hanging out with TV and JLD today. So keep up that heat.

20:34And for links to everything we talked about, visit eofire.com. Just type Tim in the search bar and the show notes page will pop right up. And Tim, I want to say thank you for sharing your truth, your knowledge, your value with Fire Nation today. For that, we salute you and we'll catch you on the flip side. Thanks so much, John. Great being here.

21:20world, top entrepreneurs, and you can get it all in one place when you visit UncommonSuccessBook.com. And I'll catch you there or on the flip side. The Gold Digger Podcast, hosted by Jenna Kuchar, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. The Gold Digger Podcast helps you discover your dream career with productivity tips, social strategies, business hacks, inspirational stories, and so much more. One of my favorite recent episodes is titled, How I've Built an Unmatched Team culture, an insanely important topic for all business owners to dive into.

21:51Listen to Gold Digger wherever you get your podcasts. Many EO Fire listeners have launched non-food franchises and Franbridge Consulting has guided them. Franbridge's founder and frequent EO Fire guest, John Ostenson, has done more placements than any other in the country and his service is free. Sign up for a consultation with John or get a copy of his book, Non-Food Franchising, at FranbridgeConsulting.com. Thank you.