I don’t know how else to describe what an absolute legend entrepreneur Erik Van Horn is in the franchising world. His resume is ridiculous — he hosts the largest podcast in franchising, the Franchise Secrets podcast, runs a mastermind on franchising called the Franchise Tribe Mastermind, is an investor in several franchise brands with Front Street Equity Partners, and was once a franchisee himself.
Erik eventually grew his personal holdings to 42 locations, joined seven other franchise brands, and expanded those too. I could go on and on.
When it comes to franchising, Erik knows his stuff. As an owner of a franchise myself (MaidThis, my residential cleaning service company) I was thrilled to be able to sit down with him. What resulted was an incredibly interesting conversation that was full of helpful tips to pass along to all of you.
Working On the Business, Not In It
Erik says that he had no idea about franchising until some of his friends started doing it. At the time, he was pursuing real estate investing and had just purchased a duplex — he lived in one half and rented out the other.
He continued to buy properties, but after a few bad deals (and as the market began to tank), he decided to jump ship. Around the same time, he was invited to a “discovery day” at a franchise called Liberty Tax Service. He says that some of his friends were already involved in it and there were a lot of other, young people buying into the brand as well.
Looking back, Erik liked the fact that the business was already established and supported, so he decided to pay the franchise fee and start learning from the founder of the company and other franchisees.
He did just that — learned as much as he could and then enjoyed a profitable exit from that franchise after about nine years. The most important takeaway from his time with Liberty is that he discovered the importance of systems and how to become an operator and marketer. He laughed when he told me that he never “knew how to do a tax return,” and never “wanted to do a tax return.” He wanted to learn how to run the business — work “on” it instead of “in,” a la Michael Gerber in The E-Myth.
Next up? Erik decided to get into consulting and bought several more brands over the next eight or nine years. He wanted to teach other franchisees everything he learned.
Why Franchising?
After Erik’s success at Liberty Tax, I couldn’t help but wonder why he wanted to keep going in the franchising world. Why not start passively investing? Or why not open a less-pressure mom-and-pop business?
Erik says that he did open a small business, but because he didn’t have enough people (and the proper system in place) to help him expand it, he had to sell it. It was another learning moment for him: franchising gave him the freedom and resources to be a “true entrepreneur,” as he calls it.
Another reason why Erik is so attracted to the world of franchising is that he is able to invest money into a business with a proven track record, give them operational and marketing guidance when they need it, and enjoy the profits without having to do a lot of boots-on-the-ground work. He adds, “As an entrepreneur, a true entrepreneur, I like the franchise model because I can find the proven brand operators.”
It’s those other franchisees that inspire Erik and work with him, not against him, to propel the business forward. When looking for people to join his team, he says that the best thing to do is to get around other smart franchisees who are hustlers, go-getting, innovating, and trying new things. There’s so much value in choosing the right people to surround yourself with — in life and business.
Erik also notes that he is successful in what he does in franchising because he chooses to go after top-performing franchisees and aggressively learn from them instead of trying to find excuses. If you get rid of the excuses, you can start focusing on things that other people are doing better than you and emulate them.
It’s something that most franchisees fail to use to their advantage: looking to other, more successful people in their industry for tips and advice. It’s one of the reasons why Erik started his franchisee mastermind program — to encourage these kinds of conversations.
From One Location to Several Dozens
When Erik started his first franchise location he eventually expanded to 42. To do so, he had to become a different person with a different mindset and a different skill set. He says that it happened gradually and started when he recognized he had to hire a district manager.
Erik and his partners were ready to bring someone on who would hopefully take a lot of responsibility out of their hands so that they could focus on other things. They found someone, thought he was great, hired him, and he ended up being a disaster. Back to the drawing board.
They eventually did find the right person and were off to the races. The expansion was quick and very successful — and Erik and his partners didn’t have to do any of the annoying work they were hoping to get out of.
It’s a nod to the fact that you can’t be afraid to give up the reins to the right person, and just how successful you can be when you learn how to delegate. It’s another important tenant from Gerber’s E-Myth and one that I agree with wholeheartedly.
Delegation, working on your business instead of in it, and a little bit of humility can get you far in the world of entrepreneurship — and move you closer toward the freedom I talk about so often here.
Photo by Tyler Franta on Unsplash
This article was written by Neel from MaidThis Franchise, a remote-local franchise opportunity for people looking to escape the rat race and reach financial freedom. Learn more here.
