Looking at a financial franchise?

Financial franchises have great advantages but they also require you to do some special homework. I will outline what to look for and what to look out for in this article.

First, let's define what we mean. Also known as financial services franchises, these are business building systems, no different from other franchises. What is special about them is that they deal in money.

By that, I mean they deal with brokering investments, or making loans, or advancing funds. Because your stock in trade is money, there is no inventory. That is a huge plus. And they are usually good candidates for home based business operations.

Examples of financial services franchises include:

• Selling mutual funds
• Selling insurance
• Real estate brokerage
• Factoring
• Making loans to small business
• Equipment leasing
• Mortgage broker

This covers a lot of ground.

The other side of the financial services business

But every coin has two sides, and in this case, the other side is that most financial franchises require you to sell. Selling is where a lot of franchisees fall down. They may think they can sell, and they may be able to sell, but selling requires initiative and drive and is often hard to actually do.

There is another aspect of selling money, which is that everyone's money is the same color. That is to say, it is easy to fall into a "who has the lowest rate" trap.

People shop for the cheapest loan they can get, and often the salesperson falls into the trap of selling low rates rather than better service, or other intangibles. Selling money is sometimes the hardest thing to sell for this reason — you need to rise above pure price, but that is hard to do when you are selling money!

I have seen salespeople selling the most complex financial product, which I think is insurance, and they consistently screw up the sale because they don't understand the product in depth. They fail to connect the prospect's needs with important product features. Probably because they don't understand them.

I think insurance is a tremendous business. Great residual income, for one thing. I would clean up in the insurance business if I could stand the boredom. But I think an even better business is out there. And this is a financial services business that does not require the level of selling that most other financial franchises do.

I'm talking about the little known business known as litigation funding, or litigation financing, or lawsuit financing. It's essentially advancing money to deserving plaintiffs who you expect will win their lawsuit.

Why is this a good business? Because there are very few people in it, relatively speaking. Even most attorneys who should know about this business do not. So I think the field is still pretty young. Also, there is little selling involved. The lawsuit plaintiffs are victims of accidents and injury and they are desperate for your help. The lawyers who are handling their case benefit because it takes the pressure off their clients to settle too quickly. And so everyone loves you.

That is what makes this a neat business. It is generally not sold on who has the best rate. And it is something that involves you doing a good deed.

So if you are interested in a financial services business opportunity or financial franchise, check into it. I'm not offering anything like that here, but if you get on my list here I will send you some very important and vital info about the business. You may want to hop onto this particular train yourself, with or without a franchise. I wish you luck and hope to talk to you soon.