BUILD YOUR MONEY MACHINE

A franchise isn't just a franchise. It should be a Money Machine, creating profit even while you're out of the office. Here's how.

- MARK SIEBERT

When I first met the founders of Buffalo Wild Wings, it was 1991 and they had about six locations.

They wanted me to try everything on the menu, so we went to the biggest table in the house and began ordering. The wings were hot. But the business potential was hotter.

I'm a franchise consultant. My job is to help turn brands into franchises, and turn franchises into giant franchises. So when I meet with a potential client, I want to know: Are they ready? Jim Disbrow and Scott Lowery, the founders of Buffalo Wild Wings, were clearly ready. Their unit-level financials were great.

They were eager learners. We had a good growth strategy.

But here's what really sold me: They understood what they were building. It wasn't just a great brand. It was a Money Machine.

I have consulted with literally thousands of businesses, and not everyone understands this, or is willing to do the work required.

But I am telling you: The most successful entrepreneurs I've ever worked with all understood that a business is ultimately just a Money Machine.

So what is a Money Machine? Good question.

It's something that provides a reasonable return on investment (ROI) to you as its owner, regardless of whether you have ever even set foot in an individual operation. You can pay yourself dividends or reinvest in your future growth. But ultimately, your Money Machine should provide you with an ROI that is commensurate with the risk you are taking by going into that business.

Franchisors and franchisees both build Money Machines because even though their businesses are different, the same principles apply. So let's make sure you're building your Money Machine the right way.

Your machine's core

There is no universal model of business success. But there are commonalities. I call this the "small business success cycle"which is in the chart above.