Joel Libava
If you’ve recently lost your job, or are thinking of leaving it, don’t buy a franchise if you need to replace your salary fast. Why?
Because in almost every case, you won’t be able to do it.
Why Quickly Replacing Your $100,000 A Year Salary Is A Pipe Dream At Best
When you purchase a franchise business-in this case, a startup* franchise business, the revenue you bring in isn’t going to go into your pocket right away. Instead, it’s going to go into:
- Purchasing more inventory
- Paying your lease
- Payroll
- Paying your insurance
- Paying your utilities
- Paying your small business loan back
And other miscellaneous items that will be part of your business expenses.
*A startup franchise is a franchise business that you start from scratch. That includes choosing and building out your location, etc.
But there’s something else you need to understand.
You’ll Still Need To Pay Your Household Expenses
Unless you have a working spouse/partner who’s making serious bank, you’re still going to have to come up with enough money to pay your:
- Mortgage
- Utilities
- Grocery costs
- Insurance
- Vehicle costs
- Home repairs/maintenance
And a whole lot more.
Feel me?
Replacing Your Income: When Do Franchisees Get Paid?
You’ll get paid after all of your expenses have been taken care of. It’s called your break-even point.
So what is break-even in a small business?
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From Paychex:
“At its simplest, the point of breakeven is the point where you are earning as much as you are spending — no more, no less. Although breaking even is better than operating at a loss, operating beyond the break-even point is where business owners want to be.“
In other words, at the profit point.
Bottom line:
You’re not going to see any profits until you break-even.
But it’s not a bad thing.
It doesn’t make buying and operating a franchise bad. It’s just how small business works. It’s math!
That said, are you ready for some good news about replacing your income?
A Possible Solution To “Replace Your Salary Quickly”
If you’re personal situation is one that requires you to be able to quickly replace your income, there is a way to do it. Ready?
You buy an existing franchise business. One that’s up and running. Why?
Because there’s already money coming in.
How much money?
That’s what you need to find out.
It’s called due diligence.
And hopefully it’s an amount you can live on so you can replace your income. Quickly?
Potentially. No guarantee though.
But it’s worth a shot. Especially if you can’t wait until you break-even with a startup franchise business opportunity.
How To Find A Franchise For Sale
To find a local franchise business for sale, all you need to do is search for a business brokers in your area. Contact them, and ask if there are any franchises for sale in your area.
Maybe you can find a franchise for sale in your community that you can purchase at a good price.
One that can give you an excellent chance of replacing your salary quickly.
Now do a search on Bing or Google for “business brokers near me.”
Because I can help you a lot.
Good luck!
About the Author
Joel Libava is The Franchise King® — an independent franchise advisor with 25+ years in the industry, two published books on franchising, and his writing has been featured in The New York Times, Forbes, CNBC, Entrepreneur® Magazine and others. In addition, he wrote exclusively for the U.S. Small Business Administration blog for eight years. He doesn't sell franchises. Instead, Joel helps you figure out if franchise ownership is actually right for you — and if it is, teaches you his powerful, proven-to-work franchise research techniques, so you can make a smart, informed decision on a franchise to own and be your own boss.
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