Trying to find the best franchises to buy can be challenging. Maybe you should see if you are buying a franchise business for the right reasons, first.
The 5 Best Reasons For Investing In Your Own Franchise Business
1. To Avoid Dysfunctional Bosses
Some bosses have major mood swings. Do you enjoy having a new boss every 20 minutes?
Sometimes, no matter how hard you try to be a model employee, some bosses just can’t be pleased. I know that you may find this hard to believe, but bosses are human, too. They bring with them all the weird stuff they have had to deal with in their lives, whether it was a bizarre childhood, some ex-boyfriend or girlfriend stalking incidents, late teen glue sniffing, or post adolescent thumb sucking. Not every boss out there has been through therapy, or has a desire to learn about the benefits of one on one counseling. It is not your problem, so maybe buying a franchise is your way out.
2. The Desire to Create Equity
Is “I am sick of making them money for them!” a common phrase of the day, in your head?
Although working for someone else can in most cases give you a feeling of security, it won’t give you a feeling of having equity. As a matter of fact, you won’t have any equity. You will have a steady paycheck; you’ll usually get health benefits, and sometimes you’ll even enjoy being part of a retirement plan. Those are all great reasons to work for someone else. That is until you are downsized, outsized, rightsized, leftsized, replaced, or just plain fired. Working for someone else has enabled you to keep up with your expenses, maybe save a little extra for a rainy day, and contribute some money towards your retirement. But has working for someone else taken your lifestyle to the next level? If so, that is fantastic. But I suspect it is not, which could be one reason you are looking at other options, like franchise/small business ownership.
While we are on the subject of being an ex-employee, what do you really have to show for all of your hard work? Maybe you have a severance package. Maybe you get to keep your health benefits for a short time, of better yet, you may even get to enjoy the pleasure of paying COBRA insurance premiums, until your next job. I’ll bet you won’t be sending your boss a thank you letter for that.
The thing that most people forget about when they are employees is this:
Most employees don’t have an opportunity to build equity. Equity is almost always reserved for the owner.
If you actually did have equity in your last job, you would have been able to sell your job for a profit. Do you know anyone who was able to sell their job? I’ll bet you know some folks who have been able to sell their businesses, though.
That is equity. Invest in a business of your own, grow it, and then sell it for a profit. How does that sound? Equity.
Bookmark This: 20 Things To Do Before You Buy a Franchise Business
3. A Desire for More Freedom
Would you like to be as “Free as a bird?” Fantastic! You have two choices;
1. Buy wings.
2. Become a franchise/small business owner.
Let’s say that your Junior High School daughter has a championship basketball game in a week. Your current job requires you to travel 2 out of 4 weeks every single month. You have been pretty ok with that, as you are making pretty good money, and at least you are not always out of town. The week of your daughter’s big game is you’re in-town week. Perfect.
Business has been getting a lot tougher lately. There is more and more competition, your sales numbers have been a little below par, and you have a new boss, who you haven’t quite figured out yet. Then there is that really tough client in Boston. This client is your 3rd largest, and is one of those that expect you to be a phone call away at all times. You were able to help them navigate through some technical issues they were having last month, and all is going well.
The week of the big game starts of well, and you can’t wait to see your daughter in action, Thursday night. On Tuesday, that client from Boston calls you, and is having a new set of technical issues. You try to get them resolved via phone, and even have your IT Department step in. By Wednesday, their problems deepen, and you have no choice but to fly up to Boston to help them through this mess. You inform your daughter that there is a big headache at work, and that you have to fly to Boston to resolve it. She tearfully walks away, and you, almost on the verge of tears yourself, throw your hands into the air, experiencing a combination of sadness, anger, and disbelief.
This has happened before, but for some reason, this one really stings. You are so sick of not being in control of your schedule. You are working harder than ever, you have a new boss that does not appreciate you, and you are stuck with a company that is starting to lose serious market share. Most importantly though, you have a kid who is really hurting, because her Daddy can’t be there to watch her play in her most important game ever. Maybe it is time for a change.
4. Desire To Create A Legacy
If your kids didn’t have to experience the joys that accompany frequent corporate downsizings, that would be ok with you, right?
Some franchise concepts can prove to be an ideal family business. Would you like to guarantee your children a job, when they graduate high school, or college?
The traditional Monday through Friday, 9-5 job model has been changing for years now. Employer loyalty is almost nonexistent, nowadays. 20-30 year jobs are pretty much history. According to Steven Little, kids that will be graduating college in the next decade will have 7 different careers. That is 7 different careers, not 7 different jobs. Do you want your kids experiencing that kind of uncertainty?
If you invest in a business of your own, and it is a business that your family can get involved in, you may be able to secure their future, along with your own. That would feel nice, huh?
Some franchise types that could be good family businesses include, sign companies, retail stores, food service businesses, dry cleaning operations, and pet related franchises.
Your kids may decide that they do not want to be part of the business. That is ok, too. Just sell your business, and move somewhere you have always wanted to live. Your kids can visit you.
5. Community Involvement
Instead of watching things from the sidelines, maybe you can contribute to your local area. Your new business can sponsor a little league team, or even launch a community food drive. You would enjoy it. Really.
At first glance, you may be thinking, who the heck would invest in a franchise of their own just to be involved in their local community? There are actually certain types of people that want to get into a business so that they can “give back”.
I have worked with several folks who have insisted that I find them an opportunity in franchise ownership that makes an impact in the community. I have found that the folks that want to invest in this type of franchise have already experienced a high level of business success, and have the financial resources necessary to invest in most anything they choose to.
The people that I have been able to find these specific types of opportunities for do insist on a nice ROI. They don’t want to work for free! They just want to make sure that whatever franchise they choose to invest in impacts the community in a positive and powerful way.
Some examples of franchise opportunities that will enable you to “give back” include children’s tutoring centers, home health care businesses, and used clothing stores, to name a few.
Did you think that the number #1 reason that people got into a franchise of their own was to make more money? My experience working one on one with prospective franchise owners tells a different story. What is yours? Does your reason for investing in a franchise of your own match the ones I named? Do you have a different one?
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"I was pretty focused on a particular franchise opportunity when I reached out to Joel Libava. In the course of a 1-hour conversation, Joel was able to ask questions and provide direct advice to help clarify the process for me and help guide me through the next steps in my vetting process. He even put me in contact with other professionals who were able to help educate me further in my particular industry. The time and money were well spent."
-Brian Grayson, Cincinnati