Who can we sell such a franchise to?
Posted: Sun Apr 20, 2025 6:21 am
At the end of 2021, we should have said to ourselves: “Let’s stop franchising, we need to validate our business model” .
How can we present ourselves to an investor who is not an expert in the business model and has never read a balance sheet?
Maybe someone attracted by marketing and influencer marketing, but not by a solid business model.
For example, the Healthy Color Trento affiliates come to mind
. They would need help because they invested in loan data a project that did not work, suffering a significant loss.
A loss that was predictable by examining the balance sheets.
In 2021, it went a little better: they made around €940,000 in revenue, but lost more than €550,000.
Yet, if we maintain the 2020 trend, we should have lost two million.
The point is that you can't start a franchise with a loss-making business model.
You have to validate the business and have solid numbers first.
How can we present ourselves to an investor who is not an expert in the business model and has never read a balance sheet?
Maybe someone attracted by marketing and influencer marketing, but not by a solid business model.
For example, the Healthy Color Trento affiliates come to mind
. They would need help because they invested in loan data a project that did not work, suffering a significant loss.
A loss that was predictable by examining the balance sheets.
In 2021, it went a little better: they made around €940,000 in revenue, but lost more than €550,000.
Yet, if we maintain the 2020 trend, we should have lost two million.
The point is that you can't start a franchise with a loss-making business model.
You have to validate the business and have solid numbers first.