How to Start a 7-Eleven Business

Monday, June 24, 2013

How to Start a 7-Eleven Business

7-Eleven stands as one of the world's best-known convenience store brands. With franchise locations in both the US and around the world, franchise owners find lucrative opportunities under the 7-Eleven banner. According to Entrepreneur Magazine, as of 2010, the company claims just over 6,500 American franchise owners, along with another 30,500 international locations. In order to become one of their ranks, a prospective franchise owner must complete a rigorous screening process and produce the bucks necessary to support a branch of this highly recognized and established brand. From start to finish, the 7-Eleven franchise process only takes two to four months to complete, so a business owner could be operational in very little time.

Step 1

See if 7-Eleven presently has a business location open in your desired area. On the application page, click on the link of available franchise locations. If one is suited to your needs, take note of this location and start the formal application process.

Step 2

Fill out the franchisee application on the 7-Eleven website. The company wants individuals with business and management experience, a credit rating of 700 or better and permanent U.S. residency. Once this application reaches the franchise department and passes screening, it's time for the Franchise Sale Manager interview.

Step 3

Interview with one of the company's Franchise Sales Managers. During this interview, the Sales Manager will review your information, talk to you about the franchise program and read over any applicable federal legal documentation pertaining to the business. The Sales Manager will then either deny the application or allow you to proceed to the testing stage.

Step 4

Complete both the Franchise Assessment and Franchise Disclosure tests. Both quantify your business acumen, ability to learn 7-Eleven's rules and regulations and management abilities. The company wants franchisees that can deliver on their "Five Fundamentals" of service: wide product selection, quality customer service, cleanliness, high-quality merchandise and good value. An applicant may be disqualified at this point for failing to meet 7-Eleven corporate standards.

Step 5

Visit available franchise locations. 7-Eleven representatives will take you on the road to view any franchise shops that suit your specifications. 7-Eleven makes an effort to match approved franchisees with a store that fits managerial capabilities, experience level and financial constraints. Budget is important at this stage, since you'll have to pay a franchise fee between $50,000 and $350,000, based on location, as well as a gasoline fee for stores with a filling station. If purchasing the franchise from a previous franchisee, the company asks that you render a goodwill payment for taking over the business.

Step 6

Work with the Franchise Office to compose an operations budget and business plan. A business plan usually includes cost and profit projections for several years in the future, as well as an examination of any nearby competitors. It takes into account payroll, taxes, permits, licenses and other necessary financial obligations. This plan should be solid and thorough, because the interview process still isn't complete.

Step 7

Take the final interview with the area 7-Eleven Sales Manager. The manager will go over the business plan and assess your readiness. If he deems you ready for business, the company will approve the application, draw up the necessary contracts and move you into the training program. If not, you can work with the company to improve your application and business plan for another try.

Step 8

Sign all contracts and pay any associated fees, including the franchise, gasoline, or goodwill fees. This will also be the time to apply for city and state liquor, food, tobacco and sanitation certificates. Each of these require a monetary payment that varies according to product and volume, so keep some cash handy for these costs.

Step 9

Attend training, then hire and train new employees. You'll learn the point-of-sale system, as well as the Fresh Daily Delivery System that guarantees fresh food deliveries. You're now considered a full franchisee and 7-Eleven business owner.

Things Needed

Computer with Internet access
Startup capital of at least $150,000
Business management experience
Excellent FICO credit rating of 700 or above
Permanent U.S. residency

References (4)

Resources (1)

7-Eleven: Franchise Locations

About the Author

Gigi Starr is a freelance fashion writer. She previously served as the blog editor for a major online fashion blog and has more than a decade of backstage experience in the beauty and high fashion industries. She has worked for businesses like an internationally renowned theatrical touring company and events such as the Mercedes-Benz N.Y.C. Fashion Week.

Photo Credits(2)

1 comment:

7-Eleven BusinessFebruary 23, 2014 at 9:19 AM
7-Eleven, 7-Eleven Business, How to Start a 7-Eleven Business
ReplyDelete
Replies

Add comment

Please don't spam. Spam comments are not approved

Subscribe to: Post Comments (Atom)

Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

Pages

Monday, June 24, 2013