What if launching a business didnโt require quitting your job or having a million dollars?
In this episode of Raw and Real Entrepreneurshipยฎ, Susan Sly interviews Alex Smereczniak, founder and CEO of Franzy. Alex is a two-time entrepreneur who sold his first college laundry business, then went on to build a national laundry startup that achieved a $100 million valuation. Now, through Franzyโan AI-powered franchise matching platformโheโs on a mission to help one million people become entrepreneurs.
But this isnโt just a founder success story. Itโs a roadmap for anyone asking, โAm I ready to bet on myself?โ
Susan and Alex explore:
- The mindset and timing required to start a business
- Why franchising is often overlookedโbut powerful
- How Franzy uses AI to align franchise opportunities with risk tolerance, time, and capital
- What entrepreneurs can learn from raising capital and hearing “no”
- The reality of AI-driven job displacement, and why entrepreneurship might be the safest path forward
Youโll also hear about:
- How Alex bought his first business in college with some creative deal-making
- Why he believes curiosity matters more than credentials
- What he learned from building a $100M venture-backed company in an unsexy industry
Whether you’re ready to make your move now or still figuring it out, this episode will give you practical insights and renewed belief in your own potential.
About Alex Smereczniak
Alex Smereczniak, founder and CEO of Franzy, turned a college laundry hustle into a $100M exit. Now heโs using AI to help 1M people become entrepreneurs through franchisingโan industry with double the 5-year success rate of independent startups.
Connect with Alex
- Franzy: https://franzy.com/
- LinkedIn: @Franzy
About Susan Sly
Susan Slyย is the maven behind Raw and Real Entrepreneurship. An award-winning AI entrepreneur and MIT Sloan alumna, Susan has carved out a niche at the forefront of the AI revolution, earning accolades as a top AI innovator in 2023 and a key figure in real-time AI advancements for 2024. With a storied career that blends rigorous academic insight with astute market strategies, Susan has emerged as a formidable founder, a discerning angel investor, a sought-after speaker, and a venerated voice in the business world. Her insights have graced platforms from CNN to CNBC and been quoted in leading publications like Forbes and MarketWatch. At the helm of the Raw and Real Entrepreneurship podcast, Susan delivers unvarnished wisdom and strategies, empowering aspiring entrepreneurs and seasoned business veterans alike to navigate the challenges of the entrepreneurial landscape with confidence.
Connect With Susan
- Website:ย โ โ โ โ โ https://thepause.ai/โ โ โ โ โ
- Website:ย โ โ โ โ โ https://susansly.comโ โ โ โ โ
- Trusted Partners:โ ย โ โ https://www.susansly.com/trustedpartnersโ โ โ
- LinkedInโ โ :โ โ โ @susanslyโ โ โ
Enjoyed This Episode?
If you found value in this conversation, youโll also appreciate our episode withย John Worthington, Founder ofย Sircles, who raisedย $1M in just 6 days.
Listen now: How Sircles Raised $1M in 6 Days
Get an inside look at investor readiness, founder discipline, and what it really takes to scale under pressure.
This transcript has been generated using AI technology. There may be errors or discrepancies in the text. The opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views of the show or its hosts.
Susan Sly 00:00
Well, hey there. Welcome to Raw and Real Entrepreneurshipยฎ. I am so excited you're here. The vision for the show, and it is a brand new era, is the bottom lineโto make entrepreneurship accessible. So whether you have a high degree of risk and a lot of capital to invest, or you are someone who is putting your toe in the water, and maybe you want something low risk and you don't have a lot of capital, I interview founders that range in age from 12 right up until their 80s.
We've had Glenn StearnsโUndercover Billionaire season oneโon the show. We have had Shadi, who's a 12-year-old cosmetics founder on Instagram, on the show. And my goal is that you always leave every episode not just inspired, but empowered and with knowledge.
And we talk about everything from the grit of fundraising to getting over social awkwardness to what it's like to build a business when you have the odds stacked against you. And today's episodeโI'm super excitedโis with my new friend Alex Smereczniak. And Alex is the founder of a company called Franzy, and his vision is to empower the next generation of 1 million entrepreneurs through franchising.
And it is so cool, and we are going to get into talking about different types of franchising and his new company, which essentially is like the Zillow of franchising. And I went through the onboarding experience myself, and it was absolutely awesome, and it was so fast, and it spit out different franchise opportunities for me based on my investment level, my risk tolerance, the amount of time I had, my interest. And so I encourage you to check out Franzy and make sure that you definitely listen to the entire show, because Alex, at the end, shares his wisdom and how he deals with challenges.
And so whether you are thinking about starting a business or you already have one, this is going to be an amazing episode. And before we jump in, I just want to give a shout-out to Alex and the folks at Franzy. Iโm so excited about their mission. They have just raised some incredible pre-seed funding. They are partnering with hundreds of different brands out there. And whether you are interested in starting a franchise or not, just go through their process, because it is super cool.
And Alex is a second-time entrepreneur, so mad respect. His previous businessโhe grew it to a $100 million valuationโand less than 0.4% of all SaaS companies reach $10 million a year in ARR, and he is one of those 0.4 percenters. So absolutely amazing.
Whatโs been going on for me personally is I have spent a few weeks prior to the show in reflection, also just getting healthy again. I was running at a million miles an hourโfundraising for thePauseยฎ, speaking at events and doing workshops, flying overseasโand I ended up getting really, really run down.
And it was a time of reflection, where I said, you know what, I am looking at making some shifts in my life, and one of the shifts is definitely taking better care of myself. And for years and years and years, I have been doing, you know, incredible in my nutrition regime, but I havenโt been doing incredible in terms of focusing on tracking things like my sleep or my overall well-being.
And so that is one of many reasons we created thePauseยฎ appโDr. Mia Chorney and myself. It is a female-founded company, and one of the first companies in the entire world to be using true artificial intelligence to do AI-based coaching within the app, focusing on women who are going through perimenopause and menopause.
And one of the new features is our sleep tracker. And I started tracking that, and it was embarrassingโand no wonder I got run down. My sleep hasnโt been great. And so that new tracker is helping me be able to take a look at how much sleep Iโm actually gettingโmy quality of sleep. Itโs absolutely amazing.
And the other thing that we are adding to is our insights. So whether you have a wearable device or you donโt, you can track insights like your mood, and you can see trends over time. And here was the interesting thingโI noticed that just before I got sick, my overall mood trends had been down. And Iโm like, oh wow, thatโs interesting.
And in my past, yeah, I met amazing people like Louise Hay, Dr. Wayne Dyer, and we know thereโs an emotional cause to most illnesses. Or, you know, some people would believeโmyself includedโthat all illnesses that Iโve ever had, it has been my body being out of alignment.
So I am using our Pause app to be able to track those things and get those insights and use Harmony, our AI agent, to have conversations. And our team is really building fast and furious. So every single week, we are coming out with updated features and just new things to really improve that user journey.
And weโre just getting started. The company hasnโt even been out for a year yet, and building technology is crazy. So I would just encourage you to share it with any woman in your life who is going through perimenopause and menopause. And you can find it if you search thePauseยฎ Menopause App in the App Store or in the Play Store, and I would love for you to support this business, because it is our vision to powerfully and positively impact 10 million women globally who are navigating perimenopause and menopause.
So with that, letโs get into this show with the amazing founder of Franzy and my new friend, Alex Smereczniak.
Voice Over 06:06
This is Raw and Real Entrepreneurshipยฎ, the show that brings the no-nonsense truth of what is required to start, grow, and scale your business. I am your host, Susan Sly.
Susan Sly 06:20
Alex, I am so excited to have you on Raw and Real Entrepreneurshipยฎ. And for everyone listening, Alex and I have been jamming out talking for almost 20 minutes, and Iโthereโs so many things in this episode we're going to cover, and the first one is really around inclusivity. So first and foremost, Alex, it's great to have you here on the show.
Alex Smereczniak 06:41
Susan, it's great to be here. And I wish we would have recorded the prior 20 minutes, because I feel there's a ton of gems, but we're gonnaโwe're gonna hit them all, and then some here as well.
Susan Sly 06:50
Oh yeah, we're gonna polish those gems. And for the AustraliansโAustralia is one of our top five listening areasโyeah, gems, not nuggets. Anyway, that's a little Aussie joke there. So Alex, Franzyโthis vision to essentially co-create a million entrepreneursโis massive. And I went through the whole onboarding experience. I think it's genius. In fact, I just said to my husband Chris prior to the show, I'm like, oh my gosh, this company is going to change the landscape ofโwhen I say inclusivity, inclusivity for accessibilityโfor anyone to become an entrepreneur. And my first question out of the gate is, you're going to create all of these entrepreneurs. And do you think anyone can be an entrepreneur?
Alex Smereczniak 07:41
Yeah, yeah, definitely. I think, you know, I've talked about it with my co-founder before, but we compare it to, like, competitive sport or athletes. There's definitely people that are more naturally giftedโyou know, out of the womb they're destined to go play golf or basketball. LeBron, you know, as an example. But then there's also those individuals that really refine and hone their craft through the sheer dedication, willpower, work ethicโand they're in the gym 10 hours a day, shooting hoopsโand eventually still made it to the NBA, still got to the same destination as someone who's more naturally gifted. And don't get me wrongโLeBron had to put in the hours too. But I think entrepreneurship is the same way. There's some people that are just born to problem solve, and they're creative, and they have no risk tolerance, you know, or they'reโyou knowโthey're not afraid of risk at all. And then there's others that have to get comfortable and educate themselves a little more and refine and flex that muscle a littleโa little bit. And so to answer your question, I think youโentrepreneurs can be created if you have the attitude and willingness to put in the work.
Susan Sly 08:42
So with the Franzy onboardingโyou know, the questions are, you know, how soon are you ready to start? And Iโyou and I were talking, and we're going to get into thisโlike, with the AI revolution, which obviously I talk about all the time on the show. We alsoโtheโwhen we're recording the show, there's a bunch of layoffs happening, and especially in the tech sector. We talked about the diminishing white collar jobsโalso entry-level jobsโyou know, people graduating university and their degree is already obsolete. Theโwhen in the onboarding, the questions are very deliberate. So how soon are you ready? So going back toโAlex, in your expert opinion, because you're a multi-time founder, this isn't your first rodeoโhow does someone know they're actually ready to be an entrepreneur?
Alex Smereczniak 09:35
That's a great question. I think the feedbackโthe advice that I give to people typically is there's never a good time. It's probably like having kids to a degree, or starting a new job, or any of these big, seemingly risky things in life, is that once you do it, you look back, you're like, no, that wasn't so bad. And we figured it out. I think starting a business or becoming an entrepreneur is the same way. And so my thought is that anyone can be ready tomorrow, but not everyone has thatโthat, you know, level of maybe confidence or comfortability. But we ask people so that we knowโyou know, we want to meet them where they are. If they're just more passively exploring, we're not going to put the full court press on them. That might actually deter them from getting comfortable and, you know, acceptingโyou know, that decision. Versus others are like, yep, I'm ready to go. I've been thinking about this for years. I'm finally ready to, like, as Nike says, just do it and leave my job and go start a business. So we ask to get a sense for where are they on that spectrum of comfortability and readiness to dive into the deep end.
Susan Sly 10:37
And thinking about the readiness, right? Some people are impulsive. I know I have made impulse decisions. We were talking aboutโprior to starting the show, I'm recording today from my house in Whitefish, Montana, which we're putting on the market. I just don't have time to be here right nowโhonestly, building thePauseยฎ. And it was an impulse decision. I was literally here on vacation getting a pedicure and bought a house. Now, forโfor saying, I'm going to jump in and be an entrepreneur, let's dissect it a little bit, because a lot of people do make impulse decisions. But I know for Franzy it's importantโthere's also a financial readiness component to it. Can you talk about that?
Alex Smereczniak 11:21
Yeah. So the good thing about Franzy is, like, our goal isn't like, oh, let's put anyone that comes to the site into the business. It's reallyโlet's democratize access to entrepreneurship through franchising to start. And so if you do have that mindset, and you are ready, and maybe you just have some fears that might not actually be fearsโit's like, it's you getting in front of your ownโyou know, you getting in your own wayโwe'll help uncover that.
There's also that group of people that come, and they're like, I'm, you know, 100k in debt, and I don't have, you know, two nickels to rub, and I'm trying to figure out my, you know, living situation and how to take care of my family. We'll tell those people directly, like, now is not the time for you. You have other things to, you know, work on and figure out first.
So our goal isn't to convince people why they should buy a business. It's to better understand their risk tolerance, their readiness financially, their operational background, what their goals and interests are. Then if the right number of ingredients are there, we're there to clear the roadโwhether that's yourself getting in your own way, it's not, you know, not knowing what brands to look at or the best fitโand then also helping you find the right lenders, the right franchise CPA, attorney, commercial real estate folks, to help support you.
All those things that, you know, maybe in isolationโespecially togetherโseem scary and daunting, are actually very solvable, you know, overcomeable things that, with enough coaching, guidance, support from, you know, from us, as well as the brand you're going to work withโin hindsightโlook incredibly easy. And, you know, allow you to be on your way to ownership and entrepreneurship.
Susan Sly 12:46
Which makes so much sense, right? Andโand for everyone listening, it is accessible. And I haveโI have friends that own multiple franchises and different kinds of franchises. We've had franchise concierges on the show before, andโandโand there are so many types.
And a lot of people think, when they're thinking franchises, they're thinking, oh, McDonaldโs. Or they're thinking, you know, Taco Bell, that kind of thing. But expansively, looking at Franzy and all of the different types of franchises, I was actually amazed.
So let me ask you thisโa kid from Minnesotaโwhat was the first franchise you fell in love with, or had like a heart connection to, that has a special place for you?
Alex Smereczniak 13:30
Well, growing upโI mean, I grew up in a small town in Minnesota, 15,000 people. My co-founderโwhen we used toโbecause he's also from where I'm from, Red Wingโwhen we would meet investors or other people, I would tell them where I was from, and he's like, why do you always say Red Wing? No one knows what that is. Just say Minneapolis because it's, you know...
The funny thing is, is eight out of ten people-ish knew what Red Wing was because of Red Wing Shoes or Red Wing Boots, which is this famousโthey make work boots, but they also partner with J.Crew, and Drake rapped about them in a song. And they'veโthey've got a global brand.
And so, while it's a unique franchise model, I'd say Red Wing Shoes is actually one of myโlikeโclose to home, because it's where I'm from and where I grew up. But they do like more of a licensed franchise model, where you and I could buy a shoe store, and they, you know, they provide the shoes and the branding and whatnot. So that one definitely is at my heart.
But I would say, you know, as I've grown up and have moved cross-countryโI live in Charlotte nowโeither a Culver also, because it has Midwest roots. There's one here in Charlotte, so it's kind of like that nice reminder of home. They have cheese curds, which is big in the Midwestโand things like Canada.
Susan Sly 14:41
Too, by the way.
Alex Smereczniak 14:45
Cheese curds, yeahโeverywhere. Midwest and Canada. And Culverโs is like the only place that seems to be able to get it right, you know, down in Charlotte, North Carolina. So that one's got a special place too, just because of the reminder of home.
Susan Sly 14:59
Well, you can't make poutine without cheese curds. Really. It's fake poutine if it doesn't have cheese curds. That's likeโso kids, just so you know, wherever you are in the world, you just learned something about poutine.
But theโtheโwhen I think about the franchises, and I think about some of the onesโespecially that we become endeared toโcan youโyou have fallen in love with this model of entrepreneurship. And there are many kinds of entrepreneurship for people out there.
I mean, some peopleโit, you know, one of the things that I've always shared on the show, Alex, is about the risk tolerance, right? And the thing with franchising is it's not like you and I doing tech startups, which is high risk, high reward, high timeโ80 hours a week. And don't let anyone tell youโthis is Raw and Real Entrepreneurshipยฎโwe're here to tell you that.
And then there's low, low, low risk, but high effort. And that can be things like doing direct selling, or, you know, anything along those lines. Even, you know, real estate and being part of that, where you'reโyou're an owner-operator, and you're in that business. But franchises kind of fall nicely in the middle.
When did you fall in love with them as a business model?
Alex Smereczniak 16:11
Yeah, so I think, like many people, when I first think of franchising, it's like you saidโitโs McDonald's, itโs Subway. I actually kind of had this, like, negative connotation or undertone, and I think it was because there are a lot of bad actors in franchising because ofโsometimesโthe lack of regulation, at least on how they're sold. And so there's misalignment on people buying into the right concept or the wrong concept, and it not working outโyou know, them having a bad experience.
But the more I got into it from my previous business, which was a laundromat franchise, and I saw some of those pain points firsthand, I realized, yeah, this is the, you know, kind of the exception, not the norm. And then Iโd meet these folks that have, like, 10 Orange Theories and 15 Daveโs Hot Chickens, and they are wildly wealthy, very happy, very successfulโscratching the entrepreneurial itch, but in a way that was a little bit de-risked. They donโt have to go start the next Uber or Facebookโand are truly entrepreneurial and happy doing it.
And so I saw that, and that's where Franzy really came to meโand why I became in love with this modelโis I saw how big it is. From an impact perspective, 8% of our countryโs GDP is from franchise businesses. Massive. And it spans everything beyondโyou know, itโs not just foodโitโs home services, health and wellness, itโs beauty, itโs early childhood development, itโsโthere, you know, itโs health, mental health and wellness, home servicesโlike, everything is franchisable to a degree.
And when I saw how big it was, and then saw how unaccessible it wasโmisalignedโI thought, I need to come in and democratize this and build a platform that really puts a positive spotlight on this pathway to entrepreneurship. Because it is de-risked. And I have so many friends, family members, co-workers from past experiences that have always said, โI hate my job. Iโm not fulfilled. I want to do my own thingโbut I donโt know what.โ I was like, wellโshitโthereโs probably a franchise out there, because thereโs 4,000 of them. But they justโthey didnโt know.
And so my mission, you know, isโhow do we go enable that next million entrepreneurs to have access to these types of resourcesโfor diligence, for narrowing down the focus, to overcoming some of their fears and checking the box on some of those things that you have to do in any business: like finding financing and setting up your entity, andโagainโjust finding the right business to begin with.
Susan Sly 18:33
So letโs talk about this. Itโs likeโyou say this is like the Zillow of connecting entrepreneurs and would-be entrepreneurs with franchises. So letโs get intoโletโs play a little bit of, like, myth and truth, right?
So the thing with a franchise is, there is a variety of entry points. Can you talk about that financially? So the person listening to this or watching on YouTube, they're like, โOh, could this be for me?โ So can you talk about that range? We were talking about some of them before we got into the show.
Alex Smereczniak 19:09
Yep. So the myth is, I can't run a franchise because I need a million dollars to get going. It's a McDonald's, itโs a SubwayโIโm gonna need so much money. I don't have it. I can't do it. Dream's dead.
I think the reality is, there are franchises that range anywhere from $10,000 to get into, all the way up to 5 million. On that lower end, it's things likeโthereโs a brand called Card My Yard. And we've probably all seen them in our neighbor's yard or driving around, where it's like, โCongratulations to the new graduateโ or โHappy Birthday, Susan,โ or whatever the yard sign may be. Thatโs a franchise. And itโs $10,000 to get into it, and it generates 20 to 30 grand in additional, you know, income each year.
So there's things like thatโall the way up to a $5 million swim school, where they haveโyouโre putting in seven pools, and you're teaching hundreds, if not thousands, of kids how to swim. And it's a massive business.
And thereโs everything in between. I mean, there's hospitality, home servicesโall the things we mentioned. And so that also really excites me, knowing that if you're willing to bet on yourself, if you're willing to do the work, there is likely a franchise out there for you. You just gotta start doing the research and find that right fit.
Susan Sly 20:14
And so what is theโwhat is the usual ROI to get to profitability from the initial investment, in terms of length of time?
Alex Smereczniak 20:23
Yeah, so itโI hate this answerโbut it depends on the concept. And so one rule ofโone rule of thumb that I personally look for is, if this business costsโlet's call it 250K to get openโit should have a twoโyou know, on the low end, if possible. Sometimes one can be okay, but two on the low endโmultiple of revenue that it generates.
So if it's 250K to get into it, it should at least be able to generate half a million in revenue. And the higher from thereโ750 to a million dollarsโthe higher that multiple is, the more likely this is going to have a higher payback period. It's going to pay your initial investment back faster, and itโs going to be a business that you could scale into two, three, four of them, and really have a very healthy portfolio of companies that more than replace the income that you're generating at your W-2 today.
Susan Sly 21:12
Absolutely. And let's talk about what the reality isโespecially with what's coming, what's happening with AI, with robotics. WeโAlex and I were talking about job displacement.
And so going backโI mean, I believe it was 2019โMcKinsey came out with a global AI report, and this was before the pandemic. And they said by 2030โwhich is five years from nowโthere would be 800 million people's jobs displaced globally from AI.
Then the pandemic accelerated that because we saw companies going, heyโyou know, Amazon accelerating its robotics program. We saw companies saying, hey, we have to still deploy products. Weโyou know, people canโt work. We see how fragile the workforce is. Weโve got to do something.
Now we're seeingโI was at the Finger Lakes Summit, and as an investor, I have seven portcos, and then Iโm a startup founder, and I was there. And one of the big things they were all sayingโwhether it was Jack Selby or any of the VCsโand, you know, we all know Jack and Peter Thielโpart of the PayPal Mafia, right? With Elon.
But we're seeing thisโcompanies have to be AI-first. They are. They're wanting smaller workforces andโpeople, even my sonโhis degree in design was obsolete by the time he walked the stage to getโyou know, to get his diploma or his degree.
So, Alex, we see it. Not enough people are talking about it. You and I are technology optimists because weโre actually doing something about it. But in your opinion, what is the thing that scares you the most? And what is driving you to put in the long days with Franzy? Because a million entrepreneurs is not a small mission statement.
Alex Smereczniak 23:12
Yeah, I think something that keeps me up at nightโor that I'm thinking about, and you said really wellโis that we see how fast technology is moving and changing because weโre some of the earliest adopters of it.
And even with you and I, there's another level above usโpeople where this is all they think about and work on all day long. To a degree, even more so than you and I. And theyโre in the top, you know, tenth or a hundredth of a percent.
And when you think about thatโyou and I are probably maybe in the top, like, half a percent or one percentโso that means 99% of the population is probably not seeing or aware of how fast AI is improving. How the quality is increasing, the speed it's improving, the capabilities improvingโand what the ramifications of that are going to be over the next few years.
Thereโs a paper going around right now called AI 2027 where they talk aboutโby 2027โwe're gonna have artificial general intelligence, where the AI can start to think and operate better on its own. I'm not talking like Terminator levelโoh my gosh, Iโm freaked out.
I think this is gonna increase productivity drastically, which is a great thing. But as a society, weโre also gonna have to figure outโwhat does this mean for the bottom 30 to 40% of people that may get displaced by this type of technology?
And people are like, โOh, itโs blue-collar jobs.โ You know? โTheyโre the ones always impacted by some of these changes.โ And theyโre wrong.
Itโs going to be mostly the white-collar jobs. Like, do you need analysts anymore? Do you need designers anymore? Do you need bankers? Do you need radiologists? People have gone to med school for 10 years reading chartsโAI is already doing that better than them.
And so you think about all these people being displacedโI get excited about the technology, but Iโm terrified about what are these people going to do? And can they react fast enough?
I think the time you have to start reacting is today. Honestly, it was probably a year ago. And so I think about the timingโFranzyโand part of the reason we're behind this mission is, as a society, we're gonna have to enter what I've started calling this bet-on-yourself economy.
And that doesn't mean it has to be franchising. It could beโbet on yourself and learn a new skill. Be the top 50% that uses AI better than anyone else and is in that top 5% of people using the technologies. Or bet on yourself and open a franchise thatโs not going to be disruptedโlike gutter cleaning or home services or whatever other business it may be. Or bet on yourself and get a portfolio of short-term rentals. Or bet on yourself and start a tech company.
The theme, though, is justโstart to figure out: how are you going to take control over your career and your destiny? Because if you sit around and wait and wait and let it happen to you, itโll already be too late.
And I think some peopleโs jobs, again, are at risk. And, you know, thatโs whatโs top of mind for me. Itโsโhow do we build a platform and a tool that can help enable that group thatโs willing to be ready to take the risk and to jump into the deep end and start swimming?
Susan Sly 25:58
Yeah, andโand for those of usโand I love, Alex, how you articulated itโbecause I know just from my research on you, you and I can sit in a tech meeting, we can look at architecture, we can look at backend. You and I were talking about the AI that Franzy is using, also the AI roadmap for Franzy. And even with what we're doing at thePauseยฎ and theโyou knowโthere'sโthis isโthese are not big rooms. They're small rooms that we're having this conversation, but we're seeing around corners.
And there are a lot of people out there that are truly burying their head in the sand until they get the layoff notice. And, you know, we're theโto your point, I wasโyou and I were talking about this. So I was on Charles Schwartzโs show. We were just having this AI riff-off. And one of the things we talked aboutโto your pointโanalysts. Why would you use an analyst?
I was doingโwe're applying for our first patent, and I negotiated the fee down for the patent. And I used a custom GPT to do research on other patents in the space. Then I validatedโmyself, human in the loopโall of the different ones that were listed on the USPTO so we could go in. And I essentially did the work of a legal aide in under an hour, so I didnโt have to pay that as a billable rateโinflated.
And so we see all of these different ways the AI is getting better. And building financial forecastsโthatโs where CPAs are, or reading tax code, or doing all of those things. And I know people listening are like, oh my gosh. Some of them are freaking out. And that's why the goal isโwith the showโis to make entrepreneurship accessible.
You know, we've hadโyou know, to the conversation you wereโwe were havingโIโve had 12-year-old founders. A little girlโher name was Shadiโand she started her own cosmetics business on Instagram. She was, like, just killing it. And I had another 12-year-old founderโhe started a YouTube channel reviewing camping equipment. Heโs making multiple six figures.
I mean, entrepreneurship is accessible. And this is, in my opinion, a great way toโto go in with a level of de-risk. You maybe are still working.
And my burning question for youโsome of these franchises do not require humans to work at them. Some of them do. So what about the person who's like, โOh my gosh, Iโm already working a full-time job. I donโt have time to supervise humans.โ How does that work in terms of some of the franchises?
Alex Smereczniak 28:41
Yeah. So there are some kind of rare instances where thereโs brandsโand we talked about it, you know, at the beginning, right before we started the showโis, Iโm actually a franchisee in a brand called Another Nine, because I am busy as all get out and, you know, working 80 hours a week on Franzy. And whatโwhat my main mission and focus is.
But I also like the franchise model, and I see opportunity and, of course, want to capitalize on it. And so there's a brand called Another Nine thatโs an indoor golf simulator franchise where thereโs zero employees, thereโs zero food and bev, but itโs private bays for people to go playโyou knowโsimulation golf, or sim golf, and go practice.
If itโs in the middle of winter, itโs 100 degrees outโ40 bucks for an hourโyou can go get some buddies and, here, take your family and go have some fun. And it'll kick off 80 to 150K in cash flow and 300 to 400K in revenue with not a ton of operational work.
Now I have to go find the site and the architect, and I get support from the franchisor to do that. So itโs still work. But once itโs up and running, itโs another source of income and cash flow.
And there's other examples like that. But like you said, I think this is also the raw and real part of entrepreneurship.
Anyoneโa coach, a consultantโthat says, โSusan, this is going to be mailbox money, and itโs going to be a cakewalkโโrun the other way, because they're clearly trying to get some sort of commission or benefit. Because every bit of entrepreneurship is going to take work, and you have to have a work ethic and put in the hours.
That doesnโt mean you need to quit your job and drop everything. Like, I know people that maintain their jobs and have two or three units of, you know, pretty intensive operational franchise businesses.
But what theyโve done is theyโve hired a GMโyou know, theyโveโtheyโve workedโtheyโve worked themselves out of the business. And between them and their spouse, or them and a business partner, theyโre able to figure it out while working full time.
And itโs really what I call getting through that first year of suck. Itโs likeโthe first year is gonna suck. But if youโre willing to get through it, youโllโyouโll be happy you did it, and youโll be better off. And honestly, at some point, will probably replace your income and can go full time on it anyway.
Susan Sly 35:42
Yeah, IโI think we're probably very similar. So if I get a noโthe VCs say no in so many different waysโbut it is very much like dating. And so the no is like, โOh, it just doesnโt align with our thesis right now,โ or, โWeโre changing our thesis,โ or, โIt doesnโt align with the thesis that weโre going to have.โ Andโor, you know, whateverโthey have their ways of not saying no, but they say no.
And it just drives me. Iโm like, you have no idea what you just said no to. Becauseโlook at Canva. Like, I always useโyou know, Melanieโas an example, right? Like, you donโt know what you said no to. Because it just makes me hungrier.
And you know, Iโm the girl who did an Ironman triathlon and finished top 10 in the pro women with a fractured pelvis. I got my pelvis fractured. Iโm a Boston Marathon bombing survivor. I helped get my previous startup bootstrapped with a massive, multiple eight-figure dealโlike this, letโs go. Thatโs the way I feel.
But to your pointโitโs also likeโyouโre, you know, as a founderโand I want to talk about that as weโre coming in closeโbut as a founder, weโre juggling, you know, the vision and the execution and the digging in and the raising money and dealing with the noโs, looking for the yeses.
How do you personally balance all of that?
Alex Smereczniak 37:08
Yeah, so this is a really good question. I used toโthis was my early 20s, when I started YouLaundryโlike, I would lose sleep. Like, I would sit and toss and turn, and Iโd be like, oh my gosh, this and what if I upset these investors, or what if this doesnโt work out, and all these people that bet on me and came to work with us are out of a job?
And I would just stress and stress and stress. And I finallyโI can't remember if it was another founder who told me, or if I just finally had this realization on my ownโbut I startedโIโm a very logical, reason-oriented thinker. And I started, like, decision tree or, like, pathwaying these things out.
So I was like, alright, what happens if this thing Iโm so worried about actually happens? The company fails. We lose this money we raised. And likeโwhat actually happens?
I was like, well, some of our investorsโI let down. And, you know, wealthy people are a little less wealthy. And I was like, okay, maybe thatโs not a terrible thing. I still donโt want that to happen, but itโs notโno oneโs dying.
And the team that I builtโIโyou have to be biased and say I probably hired really good people for the most part. And those really good people will find other great jobs because theyโre really good people and theyโre good at what they do.
Then I think about our customersโlike, oh, theyโll go back to doing their laundry the way they did. So like, I played it all out, and the worst-case scenario actually wasnโt that bad.
And thatโs what allowed me to just, like, sleep. Ever since I went through that exercise, I sleep seven, eight hours a nightโIโm like a big baby. And I still have the drive, and I still have some of that, like, anxiety that fuels me. But itโs not debilitating. And itโs not like Iโll stay up till 2 a.m. worrying about every decision I make.
Iโm still very thoughtful. But Iโm just way more clear-headed, focused, and dialed-in as a result of it, without the unnecessary stress. Because at the end of the day, Iโm happier doing what Iโm doing. Iโm supporting people, creating jobs, impacting people at the highest degree by doing what Iโm doingโand like, that feels good.
And, you know, thatโs enough. As long as I come in and Iโm putting everything I can into thisโwithin reasonโthen thatโsโthatโs all I can do. And Iโm just so at peace with that.
Susan Sly 39:14
Thatโsโthatโs huge advice. And thatโI call it something different, like worst-case scenario. And I interviewed a guy on the showโthis is, like, many years agoโand heโheโthe police show up at his door, and theyโre like, โYou are going to jail.โ
He wasโwrong place, wrong time. Did a deal with a guy who he didnโt knowโhe was like, in rocketeering and stuff. But the guy didnโt know. And it was a real estate transaction. He was a realtor.
Anyway, they tell him on Friday, youโre going to jail. You know, this isโso heโhe writes this whole worst-case scenario. โOkay, if I go to jail, this is how long Iโll likely go for. I would see my wife,โ andโyou know, all this stuff.
And what ends up happening isโmy dayโtheyโre supposed to come and take him away, and the attorney finds this loophole of some description, and he doesnโt end up going.
And it was theโthat was a huge pivotal moment for me. Because I do that as a founder too. Iโll go, okay, this is the worst-case scenario. Worst-case scenario. And I keep drilling down until itโs not that bad. And then I can let it go.
But to your point that you saidโthat as founders, thereโs this healthy anxiety that fuels us. And that can be like, oh my gosh, you know, weโweโve got to be the best, the first, the only. And that drive.
And then thereโs the unhealthy anxiety, where weโre not sleeping. It impacts our performance. And so I hope everyone is taking that away.
Alex, final question I have for youโout of curiosity. So going back to franchisesโand I want itโI think everyone should go on the Franzy website, whether youโre ready to be an entrepreneur now or not. Itโs excellent to go through the process, just to see how you might get matched, right? And what would make sense for you.
I want to give you the opportunityโjust from your heartโbecause obviously youโre a very heart-centered person, mission-drivenโspeak to the person out there whoโs listening.
We have a lot of people who work in tech who listen to the show, and theyโre trying to get the courage, and they have money in savings. Theyโreโfinancially, theyโve done okay, but theyโre so nervous. But they know they want to do something.
Please speak to that person listening.
Alex Smereczniak 41:35
Yeah, Susan, I think something I think about a lot, and that again really drives me, isโI donโt care what someoneโs religious affiliation is or politicalโsomething I know for certain, though, is like, weโre all here on this earth right now, in this moment. And I know for sure we all at least have one shot. I donโt know if thereโs anything after this or not.
And I know that entrepreneurship, for me, has been this, like, incredibly fulfilling, rewarding, exciting, challengingโI mean, all these things on a level that I just didnโt think was possible to feel.
I remember growing up, people would tell me, like, you get good grades, you get a good job, you build a family. And Iโm likeโboom, you know, thatโs it? I was like, thereโs gotta be more than that. Or, you know, thereโs more to this than that.
And once I got exposed to entrepreneurship at an early age, I was likeโholy shit, this is my thing. This is the thing that I wake up every day getting excited about, passionate about.
And I have, you know, siblings and family members that are in their 40s that havenโt figured that out yet. And I can just see the difference in, like, fulfillment and happiness thatโyou knowโthat I have in life, versus what they have in life.
And so I think if you're listening to this and you've thought about startingโyouโre maybe feeling that way of like, I donโt have a purpose or a passion, or Iโm not sure what Iโm doingโlike, just start trying a bunch of things.
And I think passion can be developed and found. And Iโd sayโcome check out Franzy if business ownership has been one of those paths that youโve been curious about but didnโt know where to start. And thatโs why our mission is to help the next million get access to business ownershipโwhether itโs franchising or something elseโbecause it has made such a profound impact on my own life, my sense of purpose, and my fulfillment and happiness.
Susan Sly 43:13
I love it. And Alex, thank you for that so much. And I think for everyone listening, you never know when you need this episode, right? Or, you knowโand I would just say, like, listen again and follow Franzy and follow Alex and myself on social and get connected.
And just consider listening to this as your day one. And your day ready might be 30 days from now, maybe six months from now, it might be a year from nowโbut I donโt think youโre here for an accident. I really donโt.
So Alex, thank you again for being on Raw and Real Entrepreneurshipยฎ.
Alex Smereczniak 43:50
Thanks for having me. This was an incredible conversation, and very much a supporter of what you're doing and the message you're getting out. So thank you for having me.
Susan Sly 43:59
Thank you.
Alright friends, to everyone listeningโwherever you are in the worldโAlex and I would love a five-star review. Share the show, subscribe, do all the good stuff. And I hope you go out there, rock your day, and I will see you in the next episode.
Voice Over 44:12
Hey, this is Susan, and thanks so much for listening to this episode on Raw and Real Entrepreneurshipยฎ. If this episodeโor any episodeโhas been helpful to you, youโve gotten at least one solid tip from myself or my guests, I would love it if you would leave a five-star review wherever you listen to podcasts.
After you leave your review, go ahead and email reviews@susansly.com. Let us know where you left the review. And if I read your review on air, you could get a $50 Amazon gift card. And we would so appreciate it, because reviews do help boost the show and get this message all over the world.
If youโre interested in any of the resources we discussed on the show, go to susansly.com. Thatโs where all the show notes live. And with thatโgo out there, rock your day. God bless, and I will see you in the next episode.
This transcript has been generated using AI technology. There may be errors or discrepancies in the text. The opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views of the show or its hosts.