Joel Libava
If you’re focused on “the money part” of small business ownership, it’s an important question. So, can choosing the right franchise make you rich? Keep reading.
According to the book, “Million Dollar Habits: Proven Power Practices to Double and Triple Your Income,” written by Brian Tracy, most American millionaires are manager-owners of businesses. Here are a few more facts about the rich.
So, based on that statistic, if your goal is to become rich…millionaire-rich, you should take a serious look at becoming the owner of a business. A franchise business?
Franchise Business Impact
The U.S. franchise industry pumps a ton of money into the economy. Billions of dollars every year, as you can plainly see below.
(Image courtesy of Franchise Direct.com)
The money taken in by the over 750,000 franchise businesses gets distributed in several different ways. It goes to:
- Franchise employees
- Franchise owners
- Vendors
- Local businesses
- Local charities
- State and local taxes
- The IRS
Franchising is an important industry, and it has been for a long time. It’s a serious industry. Would you like to be a part of it? Maybe a better question would be this one:
Would you like to use the franchise business model to create wealth?
If so, I’d like to try to help you get there. Wherever “there” is.
(This Ferrari, a toy for the truly rich, can get you anywhere fast!)
Can Choosing The Right Franchise Make You Rich?
Of course it can! But, you do have to choose wisely. Because if you choose the wrong franchise, you’ll never make a dime. As a matter of fact, if you make the wrong choice in a franchise opportunity, you could end up losing your shirt. Like Joe did.
Fact: Franchise owners can and do fail.
There are even people who did their homework…people who felt they had enough money to see them through the startup phase of the business, who unfortunately never seem to get enough customers or clients. Some of them have to close up shop and force themselves to go out and find a J.O.B. (Yikes!)
So, would you like to learn how to make a good great choice in a franchise business opportunity? A choice that may lead to riches?
How To Make A Great Choice In A Franchise
Let’s begin.
The Definition Of A Great Franchise Choice
A great franchise choice would be a franchise opportunity that:
- Aligns with you
- Is affordable
- You can (potentially) see yourself owning and operating
- You can validate is a great one
- Has territory availability in your local area
- Feels right
- Can help you
create wealthbecome rich
Make sense? Is there anything else you’d like to add to the list that would make a franchise opportunity a great choice for you? If so, go ahead and add it. That way it can be your list. A list on choosing the right franchise for you.
Now, let’s go through each item, step-by-step.
Alignment
The U.S. Navy picks the very best pilots to travel around the country demonstrating our air superiority. The Blue Angels travel from air show to air show, pleasing crowds from coast to coast. They take their jobs very, very seriously. Have you ever attended an air show? I have to tell you, it’s one thing to watch a video of The Blue Angels flying in formation-aligned perfectly, for a few minutes. It’s quite another to see them perform live. In color. With real, live sound. Every time I see them live, I think to myself that I would not want to be the enemy.
(I couldn’t help myself. These jets/pilots are amazing to watch.)
Anyway…
The 1st thing you need to do (as you search for the right franchise-one that can make you rich) is to only investigate franchise opportunities that align with the stuff you’re good at.
As I wrote in my article on how to buy a franchise:
“You need to start the franchise search with you. Forget about the actual franchise opportunities that are available. They don’t matter. Not yet, anyway. What matters is you. Your top skills. Your personal characteristics. The things that make you tick.”
That’s right: You’re wasting your time if all you’re doing is going from franchise portal to franchise portal-clicking around, hoping to somehow find the franchise that will help you reach your financial goals if you buy it. Now, you could get real, real, lucky, and find the right franchise to buy/own without doing much work. Without doing the deep self-analysis necessary to determine your top skills and personal traits. But, it’s a long-shot.
So, if you’d like to increase your odds of choosing a winning franchise opportunity, take the time to do a personal assessment so you know what your top skills and dominant personal traits are. Once you have that information, you can start searching for a great franchise opportunity that aligns with what you bring to the table. And, go here to make sure you are the right kind of person to own and operate a franchise business. Not everybody is.
Affordability
Before you get too serious about becoming the owner of a franchise, you need to do some work on the financial side of things. Your financial side. After all, you don’t want to waste time on franchise opportunities you can’t afford. Read this article on the SBA.gov website to get some ideas on how to budget for a franchise business.
Tip: Be flexible. Come up with a budget range. Decide on how much of your own money you’re willing to invest, up-front, along with the total investment (including loans) you’re willing to make.
For example, tell yourself that you’re willing to come up with between $50,000-$75,000 of your own money for the right franchise opportunity, and that the total investment needs to fall somewhere between $150,000-$200,000 total.
Visualizing
When investigating franchise opportunities, it’s important for you to be able to visualize yourself owning and operating the franchise opportunities you explore. However…
You don’t have to immediately be able to visualize yourself as the owner of the franchise of franchises you’re looking into. Sometimes, a few conversations with the franchise development representative and/or a franchisee or two can help you become a little more interested in an opportunity-and enable you to see yourself as an owner.
Tip: Don’t discount a franchise opportunity just because you “can’t see yourself owning it.” If the franchise concept aligns with your top skills and seems like a good fit for your personal traits, hang in there for a little while. Be open to the possibilities. You want to make a lot of money, right?
In Part 2 of this article on the possibility of becoming rich if you choose the right franchise, I’ll delve into ways to increase your chances of finding money-making franchise opportunities. Here is Part 2.
Image of mansion from luxuryportfolio.com
Roulette wheel from Flickr
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