If you are looking at options to diversify your income, then franchising should be on your list. While most people think of franchising as high-cost restaurant franchises such as McDonald’s or Taco Bell, the truth is there are at least 20-30 other industries in franchising. From industrial to pets, business-to-business to childcare, franchising has lots of options ranging in investments that can help diversify your income.
When it comes to investing, you should seek out risk-averse, predictable options that you can control. Franchising can be a great solution for this. With proven business models, replication, support systems, flexible investment levels, and track records of success, franchising gives you the power of control over your money where the stock market and other investment funds do not.
If you have never thought about franchising or owning your own business, you are probably wondering if you are qualified to do so. If you have any of the characteristics from the list below, you make for an ideal franchising candidate. Most franchisors provide full training so you do not even need to be a professional in the industry to get started.
- You have the time to commit to run a business (typically 20 hours/week minimum). While flexibility is important there are ways to manage this time commitment. Franchisors often offer different management styles such as full-time involvement, semi-passive, and eventually passive ownership which means you’ll hire managers/employees to run the business when and where you choose not to.
- If you are an entrepreneur who enjoys following processes and procedures. With franchising, there is no need to re-create the wheel, franchisors have spent years perfecting their system to fast-track you to success. You will still be fulfilling the entrepreneur dream without many of the obstacles. However, if you prefer more latitude in your business ownership role, many emerging brands are looking for owners to help them build their systems.
- If you have the capital to spend and are not looking for an instant return on investment. Franchise businesses are long-term investments. Many do not start seeing returns on investment in the beginning growth stage. Long-term profit growth is the name of the game in franchising.
Diversification can be done in many ways to reduce your risk. Franchising is known to help people become successful and build wealth over time through scalability of the model.
Interested in how to diversify into franchising? Call me to learn more!
