Selling Franchise Business Equipment – The Auction Masters Way
The franchise world is fast-paced, exciting, and established on the principles of optimization. It’s arguably the safest form of business to enter because the processes and systems of operation have been established and thoroughly tested. The business is built for efficiency and boasts the ability to create predictable, well thought out products and services that the market demands. Franchising can be an entrepreneur’s best chance at doing consistent business over the course of many years.
In this article, we’ll focus on how the business equipment is affected in the two most common outcomes that occur when a person, or group of people, own and operate a franchise. We’ll discuss the one variable that can’t be controlled. Then, we’ll introduce you to a team who can help with the equipment if our variable causes either outcome.
Business is booming!
Because of the efficiencies built into the franchise model, oftentimes the business will thrive. The market drives a high-demand for the products or services the franchise provides and new markets open up. In that case, the business may expand operations, start new locations, and upgrade the equipment. This is the outcome we all work towards in the business world. It’s a great problem to have!
Regarding the equipment, your business has made a tremendous profit with your current implements and you stand a great chance of profiting even more if you know the best way to liquidate the equipment. One challenge remains though, you have large amounts of equipment and inventory that needs to be re-sold.
Business is not booming.
When the market shifts toward the less desired outcome, owners may be faced with the tough decision of closing the business and working towards regaining as much of the capital as possible in the process.
None of us want to see this happen, but how consumers decide to spend their money is out of a business owner’s control and it’s smart to have a plan in place if an owner needs to close down shop. In this situation, we end up in virtually the same place as the business that is experiencing success. There remains a large inventory of products and equipment that need to be liquidated in an efficient manner.
So what is the variable? You may have guessed it, or seen it mentioned above. It’s debatably the most important thing that a business relies on and it can’t be controlled. This particular variable could be the reason why a franchise closes down shop or continues to grow at a remarkable pace: market trend. A market trend is defined below by wikipedia. The most important words are in bold.
“A market trend is a perceived tendency of financial markets to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time.
A trend can only be determined in hindsight, since at any time prices in the future are not known.”
Understanding the long-term success of a franchise relies heavily on a market’s predictable price tendencies compared to revenue that is actually generated after a certain period of time. To put this in brass tax terms, just like every other business, a franchise is based on predicted results of the future based on the market.
Market trends shift all of the time. We’ve seen recent shifts in brick and mortar businesses. In certain markets, consumers are moving to online purchases and away from visiting brick and mortars. In other markets, visiting the location is still the preferred method of making purchasing decisions, and it’s even growing.
Your Team For Moving Forward
As we see, the variable of market trend is an important factor in both outcomes. And, in both outcomes, decisions must be made about what to do with our business equipment. There is no doubt that the equipment will be valuable to someone. But how does a business owner identify prospective buyers? Likely, the owner will need to sell the equipment in a business-to-business transaction and identifying interested parties who are wanting to buy now is a major challenge.
You need a team that understands the franchise industry. The best team for this situation is one that has a proven track record of success in this arena. They should have the ability to take the work of moving all your equipment off your hands. They ought to be organized, efficient, and well-practiced in moving large volumes of equipment with a streamlined process. You want a team that knows how to sell equipment fast and reach the highest margins possible.
Welcome to the Auction Masters Way. We’re a professional team of appraisers and auction specialists who help large businesses liquidate their equipment for the most valuable outcome possible. Our goal is to find the best market of buyers available for your business equipment. And like a franchise that builds its’ processes for absolute efficiency, we’re proud to say that our system is built for time-effectiveness and maximum margins. We’ve spent the last 40 years honing our process to provide clients with an organized, stress-free selling opportunity that produces real results. If you’re looking to sell your franchise business equipment, contact us today. We’re built for your industry.