Probably the first question that passes any business prospector’s lips is: How much money can I make? Arriving at a true answer, however, may not be as easy as it seems.
For starters, the question needs clarifying. For as everyone knows, different people perform better with different models whether it’s because they have the right skills or they know how to adapt with the times and take advantage of opportunities as they arise.
Second, and even more important, it takes a while to get your business to profitability. And getting to maximum profitability may take longer, since you get better at the business as you go along.
The good news is a good franchise system can show you how to absorb the rough spells and flourish at every step along the way, from the first day through every evolutionary change in your industry. The best franchises will also assess your bundle of skills and experiences for whether they provide a good fit for their business.
So assuming you find a perfect franchise for your skill set, you like the executive team and have determined they have great training and support systems and a business in which you can thrive, how much profit are you shooting for?
To answer this important question, you need to pose these more basic questions first.
3 Basic Questions For The New Entrepreneur:
How do I balance quality of life with earnings?
Some people who start with their own businesses expect to have long working hours to get the business up and humming. Others focus from the beginning on having a manageable schedule. Deciding on what balance works for you must include discussions with other family members – especially your spouse. Get your family on board with early decisions, and you’ll have fewer problems later on.
On the other hand, in the wide world of franchising, there are opportunities to operate your business from home or you might choose a category of franchise that requires fewer hours from the owner. Called semi-absentee, these businesses are set up to rely on a manager to run the business. The owner then manages the manager. In a semi-absentee business the owner might work 20 hours or fewer each week.
Am I looking for a six-figure income?
Most of my clients are looking for six figures, and this is eminently possible with a franchise. But not all franchises will get you there. With the experience of a good franchise coach, plus a thorough due diligence process of your own, that includes interviewing franchisees, you can get a good idea of what a franchisee can earn from the business.
Of course, earnings will vary by person. Some people are just better at running the business than others. And another point is some business types are not likely to earn more than five figures. If you plan correctly, however, there is no reason you can’t pinpoint a business that has the potential to provide you the living you want.
Do I want to operate a single-unit or multi-unit operation?
There are some franchises where you need several units to get your earnings into the six figures, but these can be extremely lucrative in the end. If you see yourself owning a chain, then this might be a good fit for you. Many people do extraordinarily well with several locations. Of course, by then you will have developed a crack team to help you manage them all.
Putting your attention on these global issues will help keep your focus on what matters most later on. So set your big goals to help you focus on the incremental goals to get you to the finish line. Once you know what you want, we can help you get there.
This post was originally published at an earlier date.
About the author
Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-5489.
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