When you work to earn a wage, what you are doing is putting hard work in for someone else to succeed. Although you get paid for what you do, the one who is benefiting from your hard labor is the people who you work for. The average person works more than 8.5 hours a day, which is more time than they spend sleeping, spending time with family, and enjoying hobbies.
According to statistics, 54 percent of workers in the United States find satisfaction with their work, which means that nearly 50 percent are unsatisfied. And the reason that most people feel unfulfilled is that they don’t feel as if they have much potential for growth in their position or to advance in their current field. When you earn a wage, you have very little control over what you are paid or how quickly you move up in an organization.
Employee vs. Business Owner
There are many differences between being an employee versus a business owner. Employees are the ones who have the task of realizing the business owner’s dreams. When you work for someone, your overall goal is to earn money for the business owner. So you are, in effect, renting your time for money. It is challenging for employees to get ahead and build wealth because their time is invested in furthering a business that is owned by someone else.
Slightly different, when you are a self-employed business owner, you work hard to generate income directly. A self-employed business owner is essentially the business itself. The business owner is responsible for every aspect of the process, from the daily operations to things like marketing, sales, production, and bookkeeping. Although they might have some more liberty with their time, they typically don’t make more than they spend or get to a place where they can build wealth.
A business owner is someone who has the systems in place to let the business work for them. They have employees who work and generate revenue for the business. Their labor is required, but they aren’t producing the revenue for the company. When you purchase a pre-established business like a franchise, the business will continue to prosper even when you are away, which allows you more freedom both physically and monetarily. When you are a business owner, you can use the business to help fund other investments like real estate purchases, ownership in different companies, and equipment. A business owner is not working to build wealth for someone else. They have employees who work to create wealth for them.
“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.” -Jeff Bezos
Benefits of Franchise Ownership Over Traditional Business Ownership
There are many advantages to owning a franchise versus owning a traditional business. Some of them are:
“Life is a flash of lighting in the dark of night. It is a brief time of tremendous potential.” -B. Alan Wallace
Exploring New Career Paths Without Experience: When you own a franchise, you can work in a field that you have no experience in. Franchises offer help both through training and support to get you up to speed. So instead of starting from scratch, you gain first-hand industry knowledge, and you learn from the trial and error of those who have already been through it.
Lower Risk: Nearly 20% of all businesses don’t make it to the first year. When you buy a franchise, you already have a road map to success. The reason why banks are usually less reticent to loan money to buy a franchise is that they can see proven and established results. Franchises are just much less risky from the startup.
Brand Recognition and Customer Loyalty: When you buy a franchise, you already have the marketing and branding strategies in motion, and you know that they work. Buying a franchise means buying an established customer-base and brand loyalty without building anything on your own. Therefore, you reap profits from day one, not after years of creating from nothing.
Collective Buying Power: Franchise owners inherit relationships with established suppliers, so they have more buying power and backing than if you were to start on your own. Purchasing power narrows down to one thing, cheaper rates, which allows you to realize more profits and right from the start.
Flexibility and Freedom: Although you do have to work hard at owning a franchise, you have the freedom to decide when you want to work. You also have more control over your career path and building wealth. If you buy a franchise that has scalability, or unlimited growth, the potential to expand and grow is limitless.
What is Your Path to Profit?
So what is your path to profit? How do you evaluate which franchise opportunity is right for you? Use the three D’s: due diligence, deliberations, and don’t go it alone.
Due Diligence: Picking the right franchise takes investigation and research. It isn’t enough to want to try something new. You have to know that there is a need within your location to support a franchise. Also, it is important to thoroughly go through the financials of a franchise and also to have a lawyer entirely go over the Franchise disclosure document.
Deliberations: Even if there is a need in the market, you have to decide what you do and don’t want to invest in. That takes some introspection to think about your strengths and weaknesses. Asking yourself things like, "Do I like sales?" and "Do I enjoy interacting with people?" Another essential thing to consider is whether you are willing to turn over complete control to follow a franchise system specifically as outlined.
Don’t Go it Alone: One of the most significant advantages of owning a franchise is the support you gain from buying into someone else’s groundwork. So it is essential to investigate how much support you will gain from the franchisee when deciding which franchise to buy. And since owning a franchise will be hard work, and it might distract you from your life’s obligations, you also need to make sure that you have personal and emotional support from those around you. You don’t want to go it alone, especially if you don’t have to!
Most people spend their entire life working and building wealth as an employee for someone else. If you are ready to work for your interest and profit, then a franchise is a perfect way to realize your dreams instead of someone else’s. If you take the time to choose wisely, find something that you can sink your teeth into, and investigate thoroughly, your path to wealth is well within reach.