Most of the franchise candidates we work with at The Empowered Franchisee have never owned a business, and many don’t have entrepreneurs in their families. In other words, they’re first-generation business owners. Some of these new entrepreneurs feel a bit lost in the process of launching their businesses. Like many other people, they learned their work and financial habits from their parents or grandparents, so they don’t have a model for what entrepreneurship looks like.
If you’re in the same boat as you consider franchise ownership, I’ve got good news: my team and I can help. I’ve personally been both a corporate executive and a franchise owner and was raised in a family with a mix of entrepreneurs and executives. Some of my team come from families of entrepreneurs, and others were first-generation business owners. Based on our experience and what we’ve learned from our families, these are our top 5 tips for anyone who’s the first in their family to own a franchise.
Remember: your skills and experience will translate
If you and your family have always worked in the corporate world, you may think that’s the only place your skills and experience are useful. But have confidence: many of your skills and experience will translate to franchise ownership. In fact, franchisors love to see applications from successful, experienced corporate executives because they know those individuals have many of the traits needed for franchise success. The same is true if you’ve served in a leadership role in government, the nonprofit world, the military, or ministry. In all those roles, you have to do some combination of managing a budget, marketing and selling a product or service, managing teams, and setting vision for an organization. Those are also the key responsibilities of a franchisee.
Find a mentor
If business ownership is something completely new to you, you need a mentor. Thankfully, franchising is set up for that. All franchisors have networks of owners who support and advise one another. Some owner networks are more supportive than others, so take that into consideration when researching possible franchises. Signs of a mentoring-oriented owner network include:
- The network has a good mix of experienced and new franchise owners
- The franchisor is willing to give you owner references during the awarding process
- When you contact experienced franchisees during your due diligence, they respond in a welcoming manner
- Less-experienced franchisees have had positive mentoring experiences within the network
Be prepared for the hills and valleys
For first-generation business owners, this is perhaps the least familiar part of franchising. If you didn’t grow up around entrepreneurs and have never been one yourself, you’re probably unfamiliar with the ups and downs of business ownership. Activity and income from a small business can vary greatly from month to month or year to year, especially when the business is new. Smart entrepreneurs operate with margin–both for themselves and for the business. Keep your personal and business finances separate, and set aside cash in both places to help cover your expenses during lean times.
Don’t be ashamed to start small
If you’re an aspiring entrepreneur, you probably have big dreams. Maybe you want to be an area developer and dominate your region. Or perhaps you want to make your business so successful that you can retire 10 years early. If you feel confident and have the resources and skills, go ahead and dive right in. But also keep in mind that there’s nothing wrong with starting small. Many successful franchisees buy just a single unit to start, get their feet under them, and then grow. This can be an ideal arrangement for first-generation business owners, who have to acclimate both to the franchise itself and to entrepreneurship generally.
Don’t discount your family’s support
Even if no one in your family has been an entrepreneur, that doesn’t mean they can’t support you. Family members who are good at encouragement, problem-solving, and wise decision-making can often apply those traits to any situation, including business ownership. And never discount the value of a home-cooked meal, a break for coffee, or some free babysitting to help you maintain your work-life balance and keep your head on straight. Family members (and friends) can offer those, regardless of whether they know anything about business ownership.
Finally, keep in mind that franchise consulting can be especially valuable for first-time business owners. My team and I can serve as early mentors for you and help you navigate both the worlds of franchising specifically and entrepreneurship more generally. Interested? We can get the process started in just 15 minutes. Book some time with one of us today!
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