Who is a Good Fit to Own a Franchise?
Used to be that the most typical franchise buyer was a white male, mid 50’s to 60 years old, college degree, married, middle management, frustrated with his job and wanting a modest retirement income from an owner operated business.
That is now just one of many types of franchise candidates.
The dissolving of the old social contract between employees and employers where if a person went to college they would get a good job and if they worked hard they would keep that job, then after a certain number of years they could retire and do what they really wanted to do all along (but rarely did)… That social change has been a massive game changer!
Now the people we work with daily are the best and brightest in the country. They don’t always leave their jobs, at least right away. What some do is to keep pursuing a corporate career track but we begin a parallel line of portfolio development where they own a manager run business and keep adding units.
Some immediately jump in full time. A recent candidate was the President of a Billion dollar investment fund. He went through our process and quit his very secure job (where he hated his boss) to run his franchise.
The key is the franchise model. Not everyone can, or wants to, reinvent the wheel. The candidate above has awesome skills; he just wanted to mitigate risk and get all the advantages of a proven system with all of the resources a franchise company offers.
My theory on Entrepreneurship vs Franchising:
At some point everyone that is successful hires experts.
Entrepreneurs bootstrap their start-up, build cash flow, grow their business and if they are successful they eventually bring in experts to fine tune the parts of the business that they ran on entrepreneurial chutzpa in the absence of expertise in that particular area. Their goals often focus on building a successful business that they enjoy running.
Franchise owners hire all their experts up front. Their goals often focus on building a successful business that they enjoy running as well. Because they always have someone to call for help they tend to sleep better at night, have more time with their family and enjoy the business growth process more. They build a revenue stream that remains in their community and assets that grow within the community as well. The employees they hire also have an impact on the community. We see huge personal changes as people move from detached global operative to connected local business owner.
So, with all the experts at your finger tips, what does it take to be a franchise owner?
- Drive to control your destiny and create the life you have always wanted
- Skills from your corporate business apprenticeship: Management, sales, marketing, etc (not expert at all, just solid business skills and we will figure out where to make best use of them)
- The willingness to follow a proven system (some people won’t, even if they know it works)
- Money is always a point of discussion but we have one franchise company that can get people going with the most modest financial commitment we have ever seen on up to people that commit millions of dollars.
- There are also great funding approaches from 401K rollovers to SBA loans that can ease that part of the process
What kind of person gets involved with a franchise?
- People tired of job insecurity and pay gaps
- Anyone that has been downsized
- Successful corporate executives
- People seeking their perfect lifestyle
- Moms returning to the workforce
- Millennials wanting to create cash flow with their own stamp on it
- Current owners of businesses looking to grow their portfolio
- Investment funds looking to diversify with the benefits these brands offer
- Investors (stock market, bonds, real estate, really anything)
- People tired of being road warriors
- Parents with kids at important stages of life
- People that want to grow their communities
- People that want to create local jobs
- Anyone that thinks businesses might offer better tax advantages
- And much more
Short answer: Anyone that has a drive to control their destiny and can follow a proven system.
Does everyone fit every franchise? NO!
Franchise systems are often built around certain skills or personas. In our company we match the person (or investment fund) to their perfect franchise based on certain criteria that paint a picture of their skills, strengths, likes, dislikes, how they want to work and what their goals are… and all in a particular period of time. So the franchises that are best fits for you today might be different than what you need 5 years from now.
Bet you expected just the short answer… I love talking about this stuff!
What is your success story? Let’s go find it!
George Knauf is a highly sought after, trusted advisor to many companies; Public, Independent and Franchised, of all sizes and in many markets. His 20 plus years of experience in both start-up and mature business operations makes him uniquely qualified to advise individuals that have dreamed of going into business for themselves in order to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution. Contact the Franchising USA Expert George’s Hotline 703-424-2980.