Thinking about starting a franchise? Congratulations! It’s an exciting step, one that can provide you with greater professional and financial freedom and a more meaningful legacy for your family. At the same time, however, it’s important to have realistic expectations about the process.
My goal as a franchise consultant is not to paint a rosy picture that convinces you to become a franchisee, no matter what. As someone who has steadily increased the number of franchise units he owns over the years, I obviously like franchising. In fact, I’d say I love it. But my personal experience also means that I have a realistic understanding of it. My goal is to pass that understanding along to you. As you decide whether to start a franchise, then, here are some key things to expect.
Starting a Franchise is a Big Investment
You probably already know that starting a franchise is a big financial investment. Next to–or perhaps even beyond–purchasing a home, purchasing a franchise will probably be the largest financial investment of your life. It’s important to be honest with yourself about the significance of that decision.
Starting a franchise is a financial tradeoff. The money will not be available for other purposes, such as retirement, traveling, paying for your kids’ college, or remodeling your home. At least, not right away. The exciting thing about the investment, of course, is that a successful franchise can ultimately help you build wealth for yourself and your family.
Starting a Franchise Involves Delayed Gratification
That brings me to my next point: you shouldn’t expect immediate return from your franchise investment. It takes time. How much time depends on various factors: the type of franchise you purchase, the size of your initial investment, how much you want to grow the business, and so on. I can help you figure out what your timeline might be.
The good news: you have a lot of influence over your rate and speed of return. When you invest in starting a franchise, you essentially invest in yourself. This is a very different scenario from working in the corporate world, or even from managing a traditional retirement portfolio. In those situations, you have minimal control and limited options for changing course. But with franchising, you run the business, so you can make any adjustments needed to increase your chances of success.
Starting a Franchise is Hard Work
If anyone tells you that starting a franchise is easy, they’re lying. Even if you’re an experienced executive, being a business owner is different. Be prepared to spend a lot of time educating yourself about franchising in general and your franchise in particular. And then be prepared to spend a lot of time getting the business off the ground. You’ll need to supervise your build-out, get your marketing up and running, and work long hours in the business when it first opens. Planning to be an executive or semi-absentee owner? You’ll still need to get the right systems and people in place before you can hand off day-to-day operations.
Once things are running smoothly, however, franchising gives you the chance to operate on your own terms. You’ll get to a point where you can set your own schedule and enjoy the return on your investment. Want to leave early on Fridays to watch your son’s football games? Take Tuesday off to spend time with the grandkids? Go on that long-promised world cruise with your spouse? It’s up to you!
If you’re ready for an honest, realistic assessment of franchising, book a call with me. I’d love to help you figure out whether it’s right for you!
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