Why become a business (franchise) owner and is now a good time?
According to the book E-Myth Revisited, 73% of the American workers dream of owning their own business. The reality is, only a small percentage ever do. Why? There are many reasons but a major one is people lack the knowledge to make a truly informed buying decision.
The problem is…
Most people do not spend enough time evaluating themselves and what they want to get out of a business. As a result they never buy a business or buy the wrong one!
Franchising is one of the best ways to go into business.
There are several different ways you can go into business for yourself. Franchising is one of the best ways because it offers a proven concept, training and the support necessary to be successful.
To give you an idea of the value of owning a franchise, consider this – Franchise resales tend to sell quickly. Why? Here are some major reasons:
- The books: with a franchise system you may have a better idea of the company’s true value seeing that sales revenues are reported on a regular basis using standard accounting practices. This is a big positive. In fact, many non-franchise business owners have a very hard time selling their business because of the state (or sorry state) of their books.
- The brand: investing in an existing business can be a significant investment that will be based on the projection of future earnings. In many cases a franchise brand will continue to grow in value as the number of franchise owners and awareness in the market increases.
- The systems: As the famous book, “The E-Myth-Revisited” states, a business owner should work “on” their business not “in” their business. Seeing that a every franchise business is centered around proven systems, this methodology enables the business owner to spend time really growing their business. Another big plus is the support that the franchisor provides to the franchise business owner. Also, camaraderie between fellow franchise business owners is a big factor as they share ideas and lessons learned. As an independent business owner, most of these support mechanisms are weak or nonexistent.
Why become a business franchise owner in these tough economic times?
Consider these reasons:
- Security- One of the most significant trends today is the emergence of ex-corporate executives as new franchisees due in part to the turbulent economy. Executives who have become franchise owners have discovered the benefit of generating income and building long term wealth instead of spending many months looking for their next position which may be unsecure.
- Diversification – The downturn in the economy has caused much angst to those owning stocks and bonds. However, those who have diversified their portfolio through businesses ownership have continued generating income and building wealth.
- Opportunity for women, young adults and immigrants (E2 Visa) - There has been a very big trend in these three groups entering into franchising, and with good reason. There is no glass ceiling for a franchise owner and there is potential to generate real wealth. Business ownership also can provide a means to legally immigrate to the USA. For young adults; they have seen how their parents have struggled to achieve the American dream by working for someone else. By contrast they desire to realize their goals through business ownership where they feel they have greater control over their future.