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Economic uncertainty has caused many individuals to seek new opportunities. One last one STUDY found that interest in franchise 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 franchise experience, I have my finger on the pulse of the most important criteria you should evaluate before making your first purchase. franchise if you want to make sure your results 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 this journey first hand.
In my experience, every entrepreneur needs three main resources: time, money and transferable skills. It is essential to understand the time commitment required for the business you are considering and to structure your time effectively.
Determining how much capital you are willing to commit and staying within that financial bracket is essential to avoid overextending yourself. The transferable skills you bring to the table are the most important of these three sources; the degree to which your best skills match the key roles that drive the business you want will determine your level of success. You don't have to love the product or service, but you do have to believe in the value you're going to offer; you have to 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-defunct franchise while maintaining your full-time corporate job. These strategies will ensure that your investment aligns with your personal and professional goals and sets you up for success.
1. What is your reason?
Understanding why you want to own a semi-defunct franchise is very important. Are you looking to protect against future uncertainty, build wealth on the side, or finally leave 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 provide a additional income stream to protect against possible short-term job loss. In that case, half-asset business ownership may not be your best option because the time frame to achieve sufficient profit to replace income is likely to be more than two years.
- If you want to build a hedge against future career uncertainty, say 3 to 5 years from now, then looking at half-assed business ownership now is likely a viable strategy.
- If you are looking to create an additional engine of wealth creation while also maximizing your corporate career path and income, then investing in semi-detached property now is an excellent strategy to create an additional long-term profitable source of income. income.
- If you're looking to eventually replace your corporate income and have the choice of staying corporate or leaving to become a full-time entrepreneur, you'll want to focus on franchises with strong growth potential and skills to scale across 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 the corporation to have more time for family, health and himself while building a semi- absent that did not depend on him.
His plan was to hire managers to run day-to-day operations at each location, keep costs low, and then scale to multiple locations. For him, his reason was to unlock unlimited financial growth. Today, he owns 5 locations and employs 35 staff to work just 10 hours a week, leading the team and driving the culture. The rest of his time remains open for consultations and personal interests. Knowing his 'Why' from the start allowed us to structure the path to owning a half-assed portfolio of franchises that truly aligned with his goals.
2. Understand your abilities
Identify the transferable Skill and the resources you bring to the table. What strengths from your corporate career could benefit a franchise?
Think about your experience in management, marketing, customer service or any other relevant field. What types of work are you really good at and enjoy doing? These skills are valuable assets that can help you run a successful franchise. It's not just about loving the product or service; you must enjoy and excel in the work involved in running the business and serving customers. It is equally important to clarify what work you do not like or have outgrown. Avoid a business where the main job running the business is the job you don't like.
3. Clarify your goals
Determine what you want your life to look like once the business is up and running. Do you aim to work fewer hours, achieve one better work-life balanceor 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 should look for a franchise where franchisees have been able to build teams and ultimately reduce their day-to-day involvement. If you want to build a scalable business, you should 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 that the franchise you choose fits your desired lifestyle.
Related: These franchises are big winners right now, and they're fun!
4. Set your criteria
Establish clear criteria and a vision for your franchise search. Identify what is most important to you and what you cannot compromise on.
Consider factors such as initial investment, location, time commitment and potential for growth – these are just some of the 14 criteria I have my clients consider. Which of these are necessary? non-negotiable? 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 hiring a franchise search coach (franchise broker) to help guide your search. Just as a real estate agent helps first-time buyers, a franchise broker can provide valuable insight and advice.
An experienced broker can help you define your goals and criteria, identify suitable franchise options, and guide you through the entire search process. They know the market and can save you time and effort by narrowing down the choices to only those businesses that you are best suited to run. Having a professional by your side increases your chances of finding your optimal franchise.
6. Create a short list of franchise options
Don't settle for 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 the strengths, weaknesses, costs and requirements of each business with your key capabilities and criteria. This broader perspective helps you learn more about what each franchise offers and which best matches your goals.
7. Thoroughly research the role of a semi-absent owner
Understand what it really means to be a semi-absentee owner in the franchises you are considering. This role can vary significantly from one brand to another.
Check out the day-to-day responsibilities, time commitment and support the franchisor provides. Talk to the current semi-absent owners to get a clear idea of 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 and achieving a better work-life balance, it's time to seriously consider semi-defunct franchise ownership. Do not overcomplicate the process; focus on your goals, skills and criteria. Get experienced guidance to find your best franchise options and make more informed decisions on how to embrace business with clarity and purpose. Your dedication and focus will lead you to greater financial and lifestyle success by running your optimal franchise venture.