The Profit Process Podcast...

[GordonJ]

Yesterday, in a conversation with friend Steve DiMarco, we discussed the reason why so many buy into FRANCHISES, and he said it was due to the already established process.

And that led us into a discussion about the processes of businesses, from the extremely simple (albeit PROFITABLE) idea of Chatteling to the very complicated International trade and/or the supply chain of many Franchises.

I have told the story about setting my TV on the front porch with a 4 SALE sign on it, and quickly sold it for cash (cause it was so cheap). That is the most simple process in all of business/Entrepreneurship. Direct person to person TRANSACTION.

After this discussion I spent some time looking over many franchise and distributorship opportunities and other Biz-Op to see if I could identify the PROCESS.

And I came to a conclusion, it really boils down to this: HOW EXACTLY to get your Customers' money into your pocket.

Every other thing involved is in support of the transaction.

For example, a pizza shop franchise needs a location, all the equipment, all the supplies, MARKETING and all before a single profitable transaction takes place.

Also, I think (but reserve the right to be wrong) that one can USE the process as an analytical tool to help choose the right Biz-Op.

In looking at supply chain processes, we can see why and how tariffs (if continued) will have an impact on near future profits as the process of getting supplies becomes more difficult or takes a longer time.

Anyhow, do you think by looking at and analyzing the processes of a given Biz-Op would help you or others with the decision on which type of Profit Process you choose?

Gordon