By Mike D. Smith
Houston Chronicle
http://www.houstonchronicle.com/business/retail/article/Companies-view-H...
02/12/2016
Updated 10:13 pm 02/12/16
Even with the specter of low crude oil prices dragging on Houston's economy through 2016 and possibly beyond, businesses far and wide still see plenty of opportunity here.
More than 200 companies and financing entities have filled NRG Center this week looking for people to help them launch or expand in Houston and in Texas. They include eateries, senior services businesses, management firms and tech companies, among many others.
"It starts with one," said Ryan Smolkin, CEO of Canada-based Smoke's Poutinerie, a maker of french fries "loaded" with gravy, cheese and other toppings. "We need one in Houston."
Smolkin said by phone that he sent a team from Toronto to search for people who can "believe in the brand, and live and breathe it," and move the company's U.S. expansion into Texas' large markets and get the company closer to its goal of 1,300 locations by 2020.
This is the fourth year in Houston for the International Franchise Association's Franchise Expo South, said Tom Portesy, president and CEO of MFV Expositions, the company that organizes the show for the association.
Startups at the expo include those requiring initial investment of a few thousand dollars to larger ones requiring a few million.
Even with one of its major sectors in the doldrums, Houston's dynamic economy makes it a solid contender to host one of IFA's three annual expos, Portsey said.
The economic boom of recent years, driven by energy, brought people to the city. A growing population needs services, and franchises are a way to provide those services, he said.
Now that energy fortunes have turned, a lot of people are displaced or watching others lose jobs and pondering their futures. Portesy calls them "entrepreneurs by circumstance."
"As a result, they're thinking, 'I think it's best I look at the opportunity of going into business myself,' " he said.
Running an outpost of an already established brand allows an entrepreneurial spirit to train and learn. David Okumgba of Houston likened running a franchise to an "apprenticeship program."
Okumgba's LaRuche Imports, an imported food wholesaler for 20 years, is opening its first corporate location soon near U.S. 59 and Bissonnet.
"There's a proven system and a proven concept that's duplicable," Okumgba said, referring to his pitch to potential franchisees. "It gives you a lot of security in investing your money."
Franchising also helps larger businesses put local faces on their efforts, an important part of any growth strategy, said Jeff Connally, with Austin information-technology company CMIT Solutions.
More financing options are available, Portesy said. One option is the Rollover for Business Startups program, which lets workers take out retirement funds - tax-deferred and penalty-free - for starting up a business.
The program has gained popularity since the recession, and now accounts for about 10 percent of new franchisees' financing, said Dallas Kerley, chief development officer with Pennsylvania-based Benetrends Financial.
The expo runs through Saturday.
Date: 2016-02-16
