According to Joel Libava, known as the Franchise King, if you’re looking to make fast money in a business, you aren’t going to find it in a franchise, according to Joel Libava, known as the Franchise King and contributor to the Small Business Administration.
Libava has been in the franchise business for more than 20 years. First starting as a franchise owner, he has devoted the latter part of his career advising perspective and current owners as well as writing extensively on subject of franchise ownership.
According to Libava, if you’re only focused on making money, franchise ownership may not be best business model for you. He says that most of his clients come to him not because they want to get rich, but because owning their own business provides financial freedom that doesn’t come from working for another company.
“If you’re like most people I’ve worked with, you’ll be really focused on the ‘how much can I make’ question during your franchise research. That’s completely normal. I’ve met with folks that have been downsized way too many times and want to have more control in their professional lives. Owning your own business allows that.”
As a franchise owner just starting out, it may be a year or more before you’re in a position to bring home a paycheck. You’ll have short term debt obligations, employees to pay, supplies to purchase, and a growing business with a smaller clientele than you would like. As your business grows this will change and according to Libava, if you’re willing to become a multi-unit owner, making a six figure salary is well within reach.
The most successful franchise owners are those who are realistic about the amount of work it will take to be successful. Six or seven day work weeks, a bigger capital investment than you might think, and a lot of frustrations along the way are part of the growing process for any business but as the cliché goes, if it were easy, everybody would do it.
Libava advises all perspective franchise owners to not seriously pursue franchise ownership without help. There are a lot of franchises and like any business, some are great ideas while others may leave you broke.
If you’re looking for a small business that will generate profit rapidly, you probably won’t find it in a franchise but if you find the business model that fits your interests and has a proven record of success, making money and enjoying your work are well within your reach. Source: Active Filings