A business customer may buy on a different clock

Follow a sale from first contact

Ask how the specific operation finds prospective business customers, qualifies a request, prepares a quote and wins approval. Identify who performs each task and what support the franchisor commits to provide. A recognized name does not eliminate the local sales work.

Business customers can have purchasing procedures and multiple decision makers. Investigate the actual customer groups rather than assuming all commercial accounts follow the same pattern. Request examples of process, while respecting confidential customer information.

Connect delivery to payment

Map the steps between an accepted quote and collection: scheduling, production or service, acceptance, invoicing and follow-up where applicable. Ask which systems are required and who handles disputes or corrections. Timing assumptions matter to the cash plan.

Investigate customer concentration and the effect of losing or delaying a large account without making a forecast about likely results. Ask an accountant to help distinguish booked work, recognized revenue, receivables and collected cash.

Examine local responsibility

Review the owner’s sales participation, staffing, premises, equipment and purchasing obligations in the current documents. Talk with a range of operators about everyday work. A model that suits someone who enjoys developing commercial relationships may feel very different to a buyer expecting mostly inbound consumer traffic.

Put it on paper

• Map decision makers and the quoting process.
• Follow the work through invoicing and collection.
• Confirm the owner’s sales and account-management role.

Continue with the franchise research checklist, our FDD guide, and the research directory.