From Franchisee to Independent Business Owner: Lessons from the Glass and Construction Industry

The Journey from Franchising to Independent Business Ownership

Trip Bons' entrepreneurial journey is a testament to the diverse paths one can take in business ownership. Starting as a franchisee and later transitioning to an independent business owner, Trip's experience offers valuable insights for aspiring entrepreneurs.

The Franchise Experience

Trip's first foray into business ownership came through franchising. After working in corporate sales, he was presented with an opportunity to become a franchisee for Apex Energy Solutions in the Milwaukee market. The appeal of franchising for Trip was clear:

• It offered a way to become a business owner with an "instruction manual"
• The franchise provided tools, marketing support, and operational procedures
• It seemed like an easy way to dip his toe into entrepreneurship

Trip spent about six years as an Apex Energy Solutions franchisee. However, he eventually decided to exit the franchise for several reasons:

• He and his family moved from Milwaukee to Chicago, making commuting difficult
• The franchise support wasn't as strong as it had been initially
• The franchisor was in the process of selling to another entity

The Search for an Independent Business

After exiting his franchise in 2020, Trip turned his attention to buying an independent business. His search process was challenging:

• He found searching for a business harder than anticipated
• The deal flow was limited, with many opportunities seeming "watered down"
• He experienced self-doubt and second-guessing when it came time to make decisions

To overcome these challenges, Trip took several steps:

• He networked extensively, reaching out to organizations like the Midwest Business Brokers Institute (MBBI) and the Exit Planning Exchange (XPX)
• He crafted a clear target statement to communicate his search criteria
• He eventually engaged a buy-side advisory firm, Calder Capital, to help with deal flow and due diligence

Acquiring GNC Glass, Mirror, and Construction

Trip's search eventually led him to acquire GNC Glass, Mirror, and Construction in Lake Zurich, Illinois. The business appealed to him for several reasons:

• It had been established for nearly 40 years (now celebrating its 40th anniversary)
• The company had long-tenured employees, indicating a strong culture
• It offered both residential and commercial services, providing diversification
• The business presented opportunities for relationship-building and networking

GNC specializes in sales, service, installation, and fabrication of various glass and mirror products. Their key offerings include:

• Residential: Frameless heavy glass shower doors and custom mirror replacement
• Commercial: Storefront systems, security doors, and entry systems

The business has about 15 employees and generates between $2.4 million to $3 million in annual revenue.

Lessons from Running a Construction Business

Trip's experience as an independent business owner in the construction industry has taught him several valuable lessons:

1. Cash Flow Management is Crucial

In construction, managing cash flow is particularly challenging due to factors like:

• Long project timelines
• Delayed billing and payment cycles
• Retainage (10% of payments held until project completion)

Trip emphasizes the importance of projecting cash flow and planning accordingly.

2. Relationship-Building is Key

In the construction industry, building strong relationships with general contractors and other partners is essential. Trip focuses on:

• Delivering reliable service
• Being transparent about issues or delays
• Providing good value

This approach has helped GNC secure repeat business and even win back former customers.

3. You Don't Need to Be an Expert in Everything

Trip admits he's not an expert in glass installation or construction techniques. Instead, he:

• Surrounds himself with knowledgeable team members
• Is transparent about his limitations
• Brings experts to meetings when needed

This approach has helped him build trust with his team and clients.

4. Culture and Team-Building Matter

Trip has focused on creating a positive company culture by:

• Being transparent with his team
• Encouraging open communication
• Valuing the expertise of long-time employees

This has led to employee referrals and helped with hiring in a challenging labor market.

Franchising vs. Independent Business Ownership

Having experienced both franchising and independent business ownership, Trip offers some comparisons:

Advantages of Franchising

• Easier entry into business ownership
• Provides systems and support for new entrepreneurs
• Can be good for scaling (acquiring multiple units)

Advantages of Independent Business Ownership

• More control over business decisions
• Potential for higher profitability (no ongoing royalties)
• Stronger sense of true ownership

Trip cautions that potential franchisees should carefully evaluate franchise opportunities and be wary of overly optimistic projections.

Advice for Aspiring Business Owners

Trip offers several pieces of advice for those considering buying a business:

1. Be honest about your strengths and weaknesses
2. Don't be afraid to be vulnerable with your team
3. Seek support from family and loved ones
4. Understand the time and emotional commitment involved
5. Maintain equilibrium through the highs and lows of business ownership

For those intimidated by the financial aspects of buying a business, Trip suggests:

• Be upfront about your limitations
• Seek help from advisors or firms like Calder Capital
• Focus on learning and improving your financial literacy over time

Conclusion

Trip Bons' journey from franchisee to independent business owner in the construction industry offers valuable insights for aspiring entrepreneurs. His experience demonstrates that with the right approach, it's possible to successfully acquire and run a business in an unfamiliar industry. By focusing on relationship-building, transparency, and surrounding yourself with knowledgeable team members, you can overcome the challenges of business ownership and create a thriving enterprise.

For those considering a similar path, Trip's story serves as both inspiration and a practical guide. Whether you choose franchising or independent business ownership, the key is to be honest about your capabilities, seek support when needed, and remain committed to learning and growth throughout your entrepreneurial journey.

Article created from: https://www.youtube.com/watch?v=o_IF52M1aeQ