Posted by Eli Robinson on 2014-12-11
Should I Open a Franchise in 2015?
So we’ve finally gotten to 2015! And I don’t know about you, but I have some pretty big goals for this year.
And one of the biggest decisions that anyone can think about is whether or not the time has come to finally become an entrepreneur. Our research tells us that almost every single American has thought about being his/her own boss, so let’s take a look at the pros and cons of the easiest ways to open your own business, becoming a franchisee.
2 Big Pros
No one to tell you how to do your job – Everyone in the world hates a bad boss, although it’s highly unusual that you can do anything about it. Going above his/her head to complain or requesting a department change may actually create more harm than good. Can you imagine who would be the best boss in the world? Of course you’d make a good boss of yourself! Suddenly, you actually get to try all those all ideas you’ve wanted t. And more importantly, no more doing your boss’s busy work!
Financial returns can be exceptional – Now that things are a little more settled with the economy compared to five years ago, it’s time to think about how to best invest your savings / retirement accounts / inheritances / etc. If you’ve ever met a successful franchisee, you already know that you can make lots and lots of money owning a franchise. You savings account grows at 1% annually. If you think that that’s a good return, then franchising is right for you. But if you’re looking to put your money to work, you owe it to yourself to at least consider opening a franchise.
2 Big Cons
It takes money to make money – Opening a franchise takes money. You have to both have the capital available and be willing to spend it. Most franchises are going to have three different types of financial qualifications, liquid capital, net worth, and investment
Liquid Capital Required – Value of Cash, stocks, bonds, and other cash-like securities like CDs in your possession that could be applied toward starting the franchise.
Net Worth – Value of all assets in your name. This includes the liquid capital but also includes illiquid assets like houses, cars, annuities, other real estate, etc.
Investment – The amount of money that the franchise believes you will need to actually spend to ramp up your business. This includes the franchise fee as well as other startup costs such as real estate, payroll, initial supplies, etc.
Running your business will take up a large part of your brain power – Unless you’re planning on opening a franchise and installing a management team such that you don’t have to think about it (a very rare occurrence) you’re going to need to spend quite a bit of time thinking about and running your business. If you’re goals for 2015 are to “take it easy,” then do NOT open your own business. There are other ways to meet your 2015 goals then becoming an entrepreneur.
What should I do now?
My recommendation is that you should certainly explore the option. It's absolutely free, and there's no obligation at all. So, to evaluate whether or not 2015 is your year to become an entrepreneur, then follow these 4 easy steps:
We’ll make some recommendations, and you should pick 3-5 franchises you’d like to learn more about.
Provide us your contact information, so we can connect you to representatives of the franchises you selected
Have a conversation with each of the franchises, allowing you to figure out if you’re ready to be your own boss in 2015!
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