Franchising for young entrepreneurs: why it makes sense

Owning a franchise is an attractive option for young entrepreneurs. You don’t have to start at the bottom and work your way up to where you really want to be. When you own a franchise, you start out as an owner, just like you would if you were starting a business on your own. However, franchising gives young entrepreneurs not only preparation for starting a business. It also provides a support system for the tools and technologies to run a successful enterprise.

A franchise offers a fast track to becoming a business owner, as well as the opportunity to build a multi-business business. The pandemic has forced many people to work from home and this is now considered the norm. Because of this, young entrepreneurs may prefer options franchise work from homesuch as helping people train dogs or renovating a home. Here are some components to consider when choosing the right franchise.

Low overhead features

When you first invest in a franchise, be aware of the overhead costs associated with the business model. Overhead costs—administrative expenses, office equipment, licenses, and permits—are necessary to run a business, but they don’t generate profit. When you have low overheads, a greater percentage of your expenses are spent on delivering a product or service that can be recouped in sales. When franchising as young entrepreneurs, look for a plan that directs the bulk of your spending towards the commercial aspects of the business.

Elements of the support system

Each franchisor must provide both initial training and ongoing support to run the business.

Initial training will include full job training, setting up administrative procedures, and business start-up marketing. Ongoing support should cover additional business-enhancing activities such as human resource assistance, customer contact methods, technology upgrades, growth opportunities, bidding advice, and networking.

Look for support systems that work for you, not that you have to work for them. For example, if the franchise package includes a website, does the franchisor provide content and manage updates for you, or does it become your responsibility? Support systems should help franchisees succeed, not create additional administrative work for franchisees.

Talk to other franchisees

Many franchisors include the option to speak with current franchisees. But if that suggestion isn’t obvious when you’re exploring the possibilities, ask for it. Better yet, ask to talk to someone whose path is similar to yours. This may include a younger entrepreneur, related experiences, similar initial concerns, etc. Every franchisee has a few lessons learned or tips to share that can be helpful.

When you become a franchise owner, you immediately become part of a network of other franchisees within the company. While you may focus on starting a business at first, over time you will appreciate the value of this experienced and exclusive professional network. Franchisees can be mentors and people to partner with to new ideas. Similarly, they are a source of experience if you are struggling with a certain aspect of business development.

Franchisees are also a key group if you decide to sell a franchise, as many of them operate multiple divisions or plan to operate other outlets.

You are buying the lifestyle that the franchise offers.

Each franchise gives you the opportunity to own your own business, but they do it differently. As you explore your options, think about the lifestyle you want to lead in this business. Do you want to work 80 hours a week or do you want weekends? Do you want to always be an employee, or do you want to manage others who work for you?

With 3,000 US franchises, you can choose the lifestyle you want right from the start. When your work brings you pleasure from life, your life will be much more rewarding. Leave your opinion on the business until you know how it works and what it can give you – financially and otherwise. Explore the common elements of what a franchise can deliver.

The nuances of earning income

Obviously, you want to make money as a franchise owner. So, evaluate the financial part of the business model. It is very important.

Here are two key points to consider when exploring income generating options within your franchise opportunity:

1. Diverse Income

Is the clientele of the business diversified? If the income includes both private and corporate clients, you have a diversified clientele. If you can find your own clients and be a subcontractor for larger projects, you will have a diversified clientele in the same industry. Also, if your client base is parents of children aged 6 to 9, you have a limited clientele. This does not mean that a limited clientele is a negative criterion. But as we saw with the pandemic, it can increase your financial vulnerability.

2. Regular income

If the franchise model includes customers who will regularly order a product or constantly order a service, you will receive a constant stream of income. The effort you put into attracting customers is rewarded as they repeatedly order from you. The franchisor should give you an idea of ​​the percentage of income the franchisee receives from recurring bookings.

Franchise Owners Have Different Experiences

Franchising is an inclusive entrepreneurial opportunity available to people of all backgrounds and backgrounds. Some franchisees started right out of college. Many have left high-paying careers with $401k and perks to own a franchise and take control of their lives. Others considered themselves unemployed. The franchise gave them the opportunity to use their skills for their own financial gain.

A franchise gives you an independent entrepreneurial experience without the risk of starting from scratch. In many ways, it includes the very best part of owning a business.