One of the universal questions we all ask in the franchise business is, “Why are people attracted
One of the universal questions we all ask in the franchise business is, “Why are people attracted to buy a franchise.”
New franchisees are attracted to franchising for a number of reasons. Though these reasons vary from person to person, we’ve learned over the past twenty years that most investors are attracted for one or more of the following:
- Control Issues. Many prospective franchisees are driven by the frustration they’ve felt in past employment situations where they didn’t have enough control of their work environment to influence results in the manner they desired. Perhaps they had a micro-managing boss, a parent corporation that wouldn’t listen, or something comparable. In any case, they are drawn to the idea of being their own boss, having the final say in relation to business decisions, and being able to accept either the credit or the responsibility for whatever outcome their business produces.
- Economic Need. In the past 15 years, we’ve seen an increasing trend in large corporations to displace more experienced managers in favor of less experienced (and therefore less expensive) workers. This dynamic has created a pool of experienced managers in the 45-60 year old age bracket who have found it quite difficult to gain employment comparable to what they had before. In many cases they cannot afford to retire and need to create a replacement income for a period of time. More and more, these experienced managers are being attracted to franchising as a vehicle to accomplish this goal without the fear of having to go through another “down sizing” again in the future.
- Lifestyle Issues. Another major attraction for many prospective franchisees is related to lifestyle issues. We see a steady stream of potential investors who talk about their desire to reduce business travel, job related stress and the number of hours they work per week. They often also want to find businesses with down times at certain points in the year so they can take more time off with their families or for other leisure activities. The advantage of franchising to these people is that there are so many options to choose from they are undoubtedly able to find an opportunity that matches their desires.
- Wealth Creation Goals. Many of our prospective franchisees have figured out that though their work efforts may be creating a significant amount of wealth, in most cases they are not sharing directly in the wealth they are creating. They will put in their forty plus years and then retire on whatever they’ve managed to save plus Social Security. Many investors are attracted to franchising because they understand that their efforts have the potential to create significant amounts of wealth and they will be the ones who own the wealth that is realized when it comes time to sell the business they’ve built.
As a franchise matching consultant it is important that I understand what motivates you to want to acquire a franchise. It could be one or more of the reasons mentioned above or perhaps you have an entirely different reason for wanting to become a franchisee. The more I know about what motivates you, the better our matching process will work.
Also, if it is not possible for you to achieve whatever your goals are, through the opportunities available, the time to determine this is early on so you won’t waste time on something that is never going make you happy.
Assuming we identify a franchise opportunity that will work for you, it is very important during the investigation and research phase that you really dig in and make sure you have enough information to be satisfied the opportunity is truly going to achieve your goals. This may include making sure your financial qualifications such as net worth and liquidity, and other characteristics involving personality, skills, attitudes and values; are a good fit between you and the franchise.
Remember, you aren’t just buying a business, you’re buying a result that you want in your life, so we want to focus on that result!
If you are what I call a corporate refuge or someone who has had enough of the corporate life and would like to explore being in business for yourself through franchising, you should book a call to discuss our service. Our initial call is a short. It’s a chance for you to tell me your story and share your goals. Then we will decide if we will be a good fit to work together.
This is the first step in our signature 4-step process to find you the perfect franchise!