Many of my franchise candidates thought a corporate career would be their ticket to real financial security. Some got that idea from parents who worked for the same company for decades, steadily accumulating promotions and pay raises. Others grew up in low-income families, and saw a degree and a white-collar job as the ticket out of economic uncertainty.
It’s easy to understand why they’d feel this way. They grew up at a time when the corporate landscape was very different, so their parents’ careers were very different than the ones corporate employees can expect to have today.
Corporate Security, Then and Now
For most of corporate history, mass layoffs and restructuring were reserved for catastrophic situations. Employees who signed on with a corporation and did good work could expect excellent job security and regular promotions, bonuses, and raises. It wasn’t unheard-of for a person to start on the factory floor or cleaning offices and work up to an executive position.
That all changed in the 1980s, when GE chairman Jack Welch began touting layoffs as a way to “maintain competitiveness.” Since then, layoffs and restructuring have become routine tools for balancing the books or pivoting to new strategies or products. The end result has been a dramatic decrease in job security for the average employee, from janitors to VPs.
Not helping this trend: Over the last 15 years, the average tenure of a CEO has declined significantly. Since layoffs and restructuring are often (though not always) driven by new leadership, that means companies are even more likely to go through these upheavals on a regular basis.
A large number of my candidates have personally experienced these trends. Some, like Steve, have turned in stellar performance for decades at a single company – only to be shown the door when new leadership took the helm. Others have had experiences similar to mine: steadily moving up the ranks, until ageism threw up a big brick wall across their paths. And many more, like Nathan, are still on the W-2 train but reading the writing on the wall.
3 Features of Real Financial Security
If you can’t count on corporate security any more, then what can you count on? How about yourself?
This is what I tell my candidates: the best security is a business you control, where no one can fire you, and the only limits to your success are your own choices. I realized this almost 15 years ago, when I finally decided to make the leap from employee to entrepreneur. And these are the Top 3 reasons I know I made the right choice.
I Control My Schedule
As a corporate executive, I was at the company’s beck and call. I often worked 60-hour weeks and spent weeks at a time on the road. Though I was paid a good salary, none of those extra hours got me any more money (though they earned plenty for the company). I was wearing myself to the bone and missing out on all kinds of family milestones without seeing corresponding benefit.
When I bought my multi-unit franchise, that changed. I worked a low-key day job for a few years while launching my business on the side, so I sometimes put in more than 40 hours a week. But I never had to work as hard as I did as a big-business executive – and every extra hour meant strengthening my business and my equity.
Here’s the best part: I chose an executive franchise model, so once things were up and running, I was able to cut back to 8-10 hours/week while still earning a full-time income. I was actively looking for things to do, which is how the Empowered Franchisee came about. For the last several years, I’ve earned more than I ever earned as an executive at a Fortune 50 company – all while working exactly when and where I want.
I Make the Decisions
As a corporate executive, I always had to take orders from someone else. I had some freedom to manage my team, but my KPIs and the company’s overall strategy were set by the board and the CEO. Likewise other major business decisions, including how to solve problems that arose. Every major change had to go through several layers of approvals that took weeks or even months.
With my own businesses, however, I’ve experienced a 180-degree turn. I have full control over strategy. And when I experience challenges, I get to deploy my skills to their fullest. It’s up to me to decide what to do, and I can make changes as quickly as I like. Moreover, instead of trying to hide problems from cutthroat competitors, I have a whole network of fellow owners who’ll help me problem-solve if needed.
Because I can pivot quickly, my businesses are more flexible and stronger. I can easily change with the times and learn fearlessly from mistakes, so we keep succeeding and growing. In a rapidly-changing economy like ours, that kind of flexibility breeds security.
It’s All About Ownership
As you might have figured out by now, this all goes back to ownership. And that’s the most important element of real financial security.
Since the moment I first signed my franchise contract, I’ve had 100% equity in my businesses. Every step forward, every dollar in profit earned, has gone onto my balance sheet. When I pull a lever to create growth, my family and I see the chief benefit. Here’s the best part: I can keep doing this for as long as I like. And when I’m ready to stop, the asset is 100% mine to sell.
The difference between owning a franchise and working a W-2 job is like the difference between owning and renting your home, or buying and leasing a car. So do you want to own your career and your financial security, or rent them?
If the answer’s as clear to you as it was to me, or even if you’re still uncertain, book a call with me. I’ll help you think through the pros and cons and find a franchise that fits your goals, skills, and resources. It’s time to be the owner of your own future!
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