Thursday, May 9, 2013

Cartridge World - Craig Ferguson

Many of my clients tell me they would prefer to purchase an existing business with an established track record. Some feel that's a better way to get into business; others feel they'd be buying someone else's headaches. Both options are a possibility.

Our entrepreneur this month definitely had the desire to buy an existing business and had little interest in franchising. But like many things in life, our journeys take us in directions we would never predict. And, that's what happened to our entrepreneur this month.

Congratulations Craig, and welcome to the world of entrepreneurship!

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 Craig Ferguson

 Craig Ferguson 
 
 When I first connected with Craig Ferguson, he had been in a career transition for about a year and was looking to buy an established business. He was 53 years old and had been involved in two successful business careers, first as a general manager for a semiconductor capital equipment company and the as president of a telecommunication equipment company. He didn't want to go back to the job market. He wanted to be in charge of his future, be rewarded for his efforts and make a difference. He was tired of corporate politics and dealing with people that weren't always straight forward.

Craig was determined to buy an existing business. He was already investigating several and had an offer on the table for a computer distributor that sold to the state. We talked about a variety of franchise opportunities and he really didn't have a lot of interest. He preferred a business that dealt with other businesses and already had a proven track record.

Normally I would just tell a client like this to continue on their present track but feel free to reach out to me if I could be helpful to them in the future. But Craig and I had established a connection. Even though on the surface it didn't appear that I had what he was seeking, he appreciated my insights and my desire to help him. We agreed to touch base every couple of weeks and see how his negotiations were going with the computer distributor.

Like many businesses for sale, the seller usually feels that the business is worth more than the buyer. Plus, the seller often spins the present condition of the business and leaves it to the buyer to read between the lines. When I called Craig a couple of weeks later, the seller of the computer distributor didn't agree with his contingencies and they were still negotiating. In the meantime, he was now investigating a construction company resale and a multiple unit franchise of Sport Clips, a hair salon for men, which was recently put on the market. This opened up our conversation about franchising and the advantages of investing in a structured business with a proven track record.
                                                         
Craig still preferred to buy an established business but was willing to learn a little more about franchises or structure business opportunities. He initially agreed to investigate a medical staffing agency. The cost of entry was only a fraction of the businesses he was presently pursuing and he liked the service they provided and the upside potential.

Craig spent some time learning about this business model and talking to owners. After further consideration he realized that he still wanted something of a larger scale and was leaning toward the established businesses that he was investigating. But he was open to new ideas.

I suggested a paper shredding franchise that deals with commercial accounts and that normally scales up to a million dollar plus business. He gave it some thought, but it was low on his list. Then a resale of large business card printing franchise came on the market and Craig was very interested in validating that. While this was all going on, Craig made an offer on the existing Sport Clips locations, but the owners eventually took the business off the market. The computer distributor was sold to someone else, and he was now looking at a building products distributor.

When an individual is looking for a business there will always be peaks and valleys. The process is a journey. At the Entrepreneur's Source, we call it a journey of discovery. Craig and I were certainly on a journey. As long as he wanted my help and appreciated and respected the time we spent together, I would be there for him. I often tell my clients that the journey is a little bit like dating. One has to date a bit to understand what he or she is looking for in a mate.

Our journey together continued. We checked in every couple of weeks to discuss his progress with buying an existing business and validating others. He ruled out the business card printing business and was starting to see a pattern that businesses are for sale for a reason.

In previous discussions, I learned that Craig had an interest in "green" businesses and perhaps getting one of his kids involved in the business. I had learned that there had been a Cartridge World store in his area that had closed for personal reasons. This wasn't a resale of an established business, but there was brand recognition in the area and a customer base. Craig had immediate interest and the introductions and validation started.

Craig talked to the regional developer for Cartridge World who owned a several state area and would be responsible for helping him get started in this business. Craig liked the idea that there was someone in the local market that would help him with his build out and training. There would also be coordination with other Cartridge World owners in the area to work in a team approach.

Craig called owners and got positive feedback. But being a thorough guy, Craig wanted to talk to a competitive franchise and compare opportunities. Of course I helped him with that since my duties as his coach were to help him get the information he needs to come to clarity about his future. "Marty's assistance was invaluable throughout the entire process of identifying and analyzing opportunities and ultimately selecting Cartridge World. More importantly, his encouragement helped me decide to move forward."     

In the end, Craig decided that Cartridge World would be his next career. In his words; "I selected Cartridge World because the customer value propositions of cost savings, environmental benefits and superior customer service were compelling to me given my more than 30 years of business experience. I felt the business provided wide customer appeal particularly in a difficult economic period."  

Cartridge World is the leader in remanufacturing and refilling printer cartridges. They provide replacements for all major brands including HP, Dell, Canon, Lexmark and Epson. They refill ink cartridges for most home or small business printers, whether they are multi-function, color or black and white. They also remanufacture laser cartridges for most high speed copiers, full color printers or all-in-one laser printers, fax and copier cartridges.

With 650 stores in North America and 1,700 stores worldwide, they have a 100% satisfaction guarantee, are environmental responsibility and offer saving of up to 50% off new. We all know that printer manufacturers make their money on the refill cartridges. Cartridge World breaks that cycle.

If you live in the greater Montgomery, Alabama area, please stop by with your empty cartridges to Craig's store at 3664A Airport Blvd, 251-725-5630. Craig will provide outstanding customer service and save you money while helping the environment. Free delivery can be arranged for business accounts. Saving money couldn't be easier!

Craig had the desire to buy an existing business. But like many aspiring entrepreneurs he learned that there is usually a reason that these businesses are for sale. Trying to verify the financials, customer base and market potential is a daunting task. The beauty of a franchise is that it has a proven business model, they give you training and on-going support and you can talk to other franchise owners and learn about their successes and challenges first hand. For many, that's a more comfortable path with less risk.



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