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Economic uncertainty has led many individuals to seek new opportunities. A recent study found that interest in franchising has increased by 30% in the past year due to layoffs and job insecurity. With 40% of workers expressing concern about job stability, people are exploring franchising as a path to financial security and control over their careers.
As a franchise search coach with over 30 years of franchising experience, I have my finger on the pulse of the most important criteria you must assess before buying your first franchise if you want to ensure your outcomes match your goals. I've built a multi-unit franchise business where my team and I have helped over 2,000 individuals navigate their entrepreneurial options through franchising, so I've lived the journey first-hand.
In my experience, every entrepreneur needs three primary resources: time, money and transferable skills. It's essential to understand the time commitment required for the business you're considering and structure your time effectively.
Determining the capital you're willing to deploy and staying within that financial bracket is critical to avoid overextending yourself. The transferable skills you bring to the table are the most important of these three resources; the degree to which your best skills match the core roles that drive the business you want will determine your level of success. It's not necessary to love the product or service, but you must have conviction for the value you'll be offering; you must love the work required to deliver that product or service to customers.
I want to share seven essential tactics to help you navigate buying a semi-absentee franchise while maintaining your full-time corporate job. These strategies will ensure that your investment aligns with your personal and professional objectives and sets you up for success.
1. What's your why?
Understanding why you want to own a semi-absentee franchise is very important. Are you looking to hedge against future uncertainty, create wealth on the side, or eventually transition away from your corporate job? Knowing your motivation helps you make informed decisions that align with your long-term goals.
For example, suppose your primary goal is to secure an additional income stream to protect against potential near-term job loss. In that case, semi-absentee business ownership might not be your best option because the timeline to achieve enough profit to replace income is likely longer than two years.
- If you want to create a hedge against future career uncertainty, say 3 to 5 years from now, then looking at semi-absentee business ownership now is likely a viable strategy.
- If you're seeking to create an additional wealth creation engine while also maximizing your corporate career track and income, then investing in semi-absentee ownership now is a great strategy to create an additional lucrative long-term income source.
- If you're aiming to eventually replace your corporate income and have the choice of staying in corporate or leaving to become a full-time entrepreneur, you'll want to focus on franchises with strong growth potential and the ability to scale through multiple units.
Our client, Mayank, worked for 25 years as a Management Consultant with a Big C corporate consulting firm. In 2021, he wanted to leave corporate to have more time for family, health and himself while building a semi-absentee business that was not dependent on him.
His plan was to hire managers to run the day-to-day operations at each location, maintain low overhead and then scale to multiple locations. For him, his reason was to open up unlimited financial growth. Today, he owns 5 locations and employs 35 staff to work only 10 hours per week, lead the team and drive culture. The rest of his time remains open for consulting and personal interests. Knowing his 'Why' from the beginning allowed us to structure the path to owning a semi-absentee portfolio of franchises that truly aligned with his goals.
2. Understand your skills
Identify the transferable skills and resources you bring to the table. What strengths from your corporate career can benefit a franchise?
Think about your experience in management, marketing, customer service, or any other relevant areas. What types of work are you really good at and love to do? These skills are valuable assets that can help you run a successful franchise. It's not just about loving the product or service; you need to enjoy and excel at the work involved in running the business and serving customers. It's equally important to clarify what work you dislike or have outgrown. Avoid a business where the core work that drives the business is work you dislike.
3. Clarify your goals
Define what you want your life to look like once the business is running at full stride. Do you aim to work fewer hours, achieve a better work-life balance, or build a scalable enterprise?
Having clear financial and lifestyle goals helps you stay focused and make better decisions. For example, if your goal is to work fewer hours, you need to look for a franchise where franchisees have been able to build teams and eventually reduce their daily involvement. If you want to build a scalable business, you need to focus on franchises with multiple unit opportunities or where growth is organic and variable — add more customers, add more staff, repeat. Knowing your goals will guide your choices and ensure your chosen franchise fits your desired lifestyle.
Related: These Franchises Are Big-Time Earners Right Now, and They're Fun!
4. Establish your criteria
Set clear criteria and a vision for your franchise search. Identify what is most important to you and what you cannot compromise.
Consider factors like the initial investment, location, time commitment and potential for growth – these are just a few of the 14 criteria I get my clients to consider. Which of these are must-have non-negotiables? This will help you narrow down your options and focus on franchises that meet your needs.
5. Get a franchise search coach
There are thousands of franchise options to choose from. Consider engaging a franchise search coach (franchise broker) to help guide your search. Just like a real estate agent helps first-time homebuyers, a franchise broker can provide valuable insights and advice.
An experienced broker can help you define your goals and criteria, identify suitable franchise options, and guide you through the entire research process. They know the market and can save you time and effort by narrowing down choices to only those businesses you're best suited to run. Having a professional by your side increases your chances of finding your optimum franchise.
6. Create a shortlist of franchise options
Don't settle on exploring just one franchise. Evaluate multiple options to understand different business models and find the best fit for your skills and goals.
Look at three or four franchises that interest you. Compare each business's strengths, weaknesses, costs, and requirements to your core skills and criteria. This broader perspective helps you learn more about what each franchise offers and which one best aligns with your goals.
7. Thoroughly research the role of a semi-absentee owner
Understand what being a semi-absentee owner really means in the franchises you are considering. This role can differ significantly from one brand to another.
Look into the daily responsibilities, time commitment, and support the franchisor provides. Talk to current semi-absentee owners to clearly understand what to expect. Knowing the details helps you decide if a particular franchise fits your lifestyle and availability.
If you're ready to explore creating greater wealth creation and achieve a better work-life balance, it's time to consider semi-absentee franchise ownership seriously. Don't overcomplicate the process; focus on your goals, skills, and criteria. Get experienced guidance to find your best franchise options and make more informed decisions about how to embrace the business with clarity and purpose. Your dedication and focus will lead you to greater financial and lifestyle success through running your optimum franchise venture.
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