People tell you a lot of things when you’re buying into a franchise. What’s fact? What’s fiction? Here, a few words of wisdom that you can count on.
Franchising 101
By Susan Scotts, Career Ownership Coach
Published Franchise Dictionary Magazine, April 2018 Edition
Franchising isn’t just a big investment into a food-services business.
While most people think of McDonalds or KFC as a typical franchise business, there are so many other industries to consider when thinking about a potential franchise. You can buy into a service-oriented business in the beauty or home-improvement industry, or a sales-oriented business, like Mac Tools, a mobile tool-selling company that allows you to interact with others. There are full-time, part-time, and semi-absentee franchisee opportunities, and many require investments that are far less–figure $50,000 and up–than the average McDonalds.
Franchising offers flexibility, work=life balance, and the opportunity to create wealth for your future.
Flexibility can be one of franchising’s biggest benefits. Many franchises are home-based meaning your commute is a few quick steps to your home office. Without brick-and-mortar storefronts, you have lower overhead costs, plus you an set your own schedule. Many women buy in for this reason and run their businesses around carpools, playdates, and trips to the grocery store. and yes, even with flexible schedules you can build wealth for hte future. After all, franchising is a proven business system and you will be modeling your business after one that is already successful.
You don’t have to have a lot of money to invest in a franchise.
Today, a franchise can cost less than a new car. Though at least 20 percent of all of the initial costs should come from your own personal funds. As for the rest, commercial banks loan to franchisees with good credit ratings. Also, the Small Business Administration (SBA) offers loans partially guaranteed by the government, which makes them less risky than typical bank loans. special programs for veterans–and families of veterans–offer loans with very low rates.
A franchise business is about business.
sometimes business and passion mix–and sometimes a business just fills a necessary void. though either way can be profitable, it’s often easier to make practical decisions about business. Just because you love burgers doesn’t mean you should own a burger joint. Take entrepreneur Way Huizenga, for example. He began his career in a garbage-hauling business and then created Waste Management. Was this a passion job? Probably not, but it sure was lucrative. He simply identified a niche that no one was filling and he filled it. Brilliant. Later, he did the same with Blockbuster Video, AutoNation, and Swisher Hygiene.
A franchise can provide you with an equity build and the right to sell.
Think about it: By working hard now and ramping up your business, in a few years, you may be able to sell it for three times the yearly earnings–maybe more. Franchising offers special opportunities for veterans. The International Franchise Association (IFA) has a VetFran program, where more than 650 franchise companies offer discounts, training, and mentorship to Vets who want to become business owners. These companies recognize that military strengths, like leadership and the ability to follow proven systems, translate seamlessly into the franchise industry.
It pays to at least consider franchising.
If you’re launching a job search, it never hurts to consider all of your options. If you include franchising in your research, you will be able to choose what’s best for you and your family, knowing you’ve considered everything.
Susan Scotts is a Multiple Award Winning Career Ownership Coach™ with The Entrepreneur’s Source® and possesses over three decades of experience in helping empower individuals to become entrepreneurs through franchise business ownership. For a complimentary consultation, she can be reached at 561-859-9110 or SScotts@EsourceCoach.com.