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Economic uncertainty has led many people to seek latest opportunities. Recent test found that interest in franchising has increased by 30% in the past 12 months due to layoffs and job insecurity. With 40% of employees expressing concerns 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 franchising experience, I have my finger on the pulse of the most vital criteria you would like to evaluate before purchasing your first franchise if you would like to ensure the results align with your goals. I have built a multi-unit franchise business where my team and I have helped over 2,000 people navigate the entrepreneurial options through franchising, so I have experienced the journey firsthand.
In my experience, every entrepreneur needs three basic resources: time, money, and transferable skills. It is essential to understand how much time the business you are considering requires and to structure your time effectively.
Determining how much capital you would like to invest and staying inside that financial range is key to avoiding overextending yourself. The transferable skills you bring to the table are the most vital of those three assets; the degree to which your best skills fit into the core roles that drive the business you would like will determine your level of success. You don’t have to love the product or service, but you do have to be convinced of the value you’ll provide; you have to love the work it takes to deliver that product or service to customers.
I would like to share seven essential tactics that can provide help to navigate the technique of buying a semi-absentee franchise while maintaining a full-time corporate job. These strategies will be sure that your investment aligns with your personal and skilled goals and sets you up for success.
1. What is your “why”?
Understanding why you would like to own a semi-absentee franchise is essential. Are you looking to protect yourself from future uncertainty, create wealth on the side, or ultimately retire from your corporate job? Knowing your motivations helps you make informed decisions that align with your long-term goals.
For example, let’s say your primary goal is to secure an additional stream of income to protect yourself from a potential job loss in the near future. In this case, having a semi-absentee business will not be the best choice, since the time to generate enough profit to replace income is likely longer than two years.
- If you would like to protect yourself from future uncertainty about your profession, say in 3-5 years, then considering starting a business where you’re employed part-time is probably a viable strategy now.
- If you’re looking to create an additional source of income while also maximizing your profession path and corporate earnings, investing in semi-absentee shares is a great strategy to create an additional, lucrative, long-term source of income.
- If your goal is to eventually replace corporate income and you have a selection between staying with a corporation or leaving and becoming a full-time entrepreneur, you need to focus on franchises with high growth potential and the ability to scale across multiple entities.
Our client, Mayank, worked as a management consultant at Big C consulting firm for 25 years. In 2021, he wanted to retire from corporate life to have more time for his family, health, and himself, while building a semi-absent business that was not dependent on him.
His plan was to hire managers to run the day-to-day operations at each location, keep overhead low, and then scale to multiple locations. For him, the reason was to unlock unlimited financial growth. He currently owns 5 locations and has 35 employees who work only 10 hours a week, leading the team, and driving the culture. The remainder of his time is spent consulting and pursuing personal interests. Knowing his “Why” from the starting allowed us to structure a path to having a semi-absentee franchise portfolio that actually aligned with his goals.
2. Understand your skills
Identify the skills and assets you’ll be able to transfer to the team. What strengths from your corporate profession can profit the franchise?
Think about your experience in management, marketing, customer support, or other relevant areas. What sorts of work are you actually good at and enjoy doing? These skills are invaluable assets that may provide help to run a successful franchise. It’s not only about loving the product or service; you have to enjoy and excel at the work that goes into running the business and serving customers. It’s equally essential to explain what work you don’t love or have outgrown. Avoid a business where the core work that drives the business is work you don’t love.
3. Define your goals
Determine what you would like your life to seem like once your small business is up and running. Do you would like to work fewer hours, achieve higher work-life balance, or build a scalable enterprise?
Having clear financial and lifestyle goals helps you stay focused and make higher decisions. For example, if your goal is to work fewer hours, you would like to look for a franchise where franchisees have been able to build teams and ultimately reduce their every day commitments. If you would like to build a scalable business, you would like to focus on franchises with multiple unit opportunities or where growth is organic and variable—add more customers, add more employees, repeat. Knowing your goals will guide your selections and be sure that the franchise you select suits your required lifestyle.
4. Set your criteria
Set clear criteria and vision for your franchise search. Determine what is most vital to you and what you’ll be able to’t compromise.
Consider aspects like initial investment, location, time commitment, and growth potential—these are just a few of the 14 criteria I tell my clients to consider. Which ones are essential and non-negotiable? This will provide help to narrow down your options and focus on franchises that meet your needs.
5. Get a Franchise Search Coach
There are 1000’s of franchise options to select from. Consider hiring a franchise search coach (franchise broker) to provide help to with your search. Much like a real estate agent helps first-time home buyers, a franchise broker can provide invaluable insight and advice.
An experienced broker can provide help to define your goals and criteria, discover the right franchise options, and guide you thru the research process. They know the market and can prevent time and effort by narrowing your selections down to just the businesses that are best suited to operate. Having a skilled by your side increases your possibilities of finding the perfect franchise.
6. Create a shortlist 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 4 franchises that interest you. Compare each company’s strengths, weaknesses, costs, and requirements to your personal basic skills and criteria. This broader perspective will provide help to learn more about what each franchise offers and which one is best suited to your goals.
7. Carefully consider the role of the partially absentee owner
Understand what being a semi-absentee owner really means in the franchises you’re considering. This role can vary greatly from brand to brand.
Look at the day-to-day responsibilities, time commitment, and support the franchisor provides. Talk to current owners who are partially absent to get a clear understanding of what to expect. Knowing the details helps you select if a particular franchise suits your lifestyle and availability.
If you are ready to explore creating more wealth and achieving a higher work-life balance, it is time to seriously consider owning a semi-absentee franchise. Don’t complicate the process; focus on your goals, skills, and criteria. Use experienced advice to find the best franchise options and make more informed decisions about how to embrace your small business with clarity and purpose. Your dedication and focus will lead you to greater financial and life success through running an optimal franchise enterprise.