Work the Way You Want, Live the Life You Love

Author: Steve (Page 1 of 3)

How Franchise Ownership Works

If you’ve ever thought of starting a business, you’ve probably heard of franchises. But how do they really work? There are many myths and misconceptions around franchises. For example, many people think they’re only retail and fast food. Or that you need business or industry experience to get started. Or that they’re too expensive.

A franchise can be a great way to run a business. While you still own your own business and earn all the profits, you’re part of a bigger system and they do a lot of the work for you. I’ve owned two franchises myself, and they helped me grow faster and stronger than I ever could have on my own.

What is a Franchise?

In a franchise system, a parent company (the “franchisor”) develops a brand, business model, and support systems. They test it and improve it until it’s profitable and can be run by other people. Then they licenses it to individual business owners (“franchisees”) to run their own copy of the business. Each franchisee independently owns and operates their own business, but they’ve agreed to follow the systems of the franchisor. This provides a single brand and consistent product.

It’s generally much easier to start a franchise business than to start a business on your own, because the franchisor does a lot of the work for you. Here are some examples of what a good franchise will provide its owners:

  • Proven business model, already successful in other locations. You can verify this with existing owners before deciding to join.
  • Training and support. They teach you how to run the business. For many franchises, you don’t need industry experience or a business degree.
  • Established brand and marketing support to keep the brand fresh and help you get new customers.
  • Centralized business systems and best practices. Not only do you save on the cost of these systems, but you don’t have to waste any time figuring out how to set them up. You’ll also get better results with the brains and experience of dozens or hundreds of owners than you could ever figure out on your own.
  • Network of other owners. You’re in business for yourself, but not by yourself. Learn from the most successful owners.
  • Growth potential. There’s no salary cap to a business, and in many cases you can grow even more with multiple units.

In return for this, you’ll pay an upfront franchise fee as well as ongoing royalties, but these can be well worth it. These vary from business to business, but you’ll learn about them in detail before deciding to join.

Types of Franchises

Of course you’ve heard of the big fast food franchises like McDonalds and Subway, but there are over 3000 franchises in many industries. Here are some examples:

  • Education, including in-home tutoring, preschools, and after-school enrichment.
  • Fitness, including boutique fitness gyms, in-home personal training, equipment maintenance, and children’s fitness.
  • B2B (business to business) services, such as consulting, staffing, marketing, sign manufacturing, janitorial services, and many more.
  • Pets, including pet stores, dog walking, and pet sitting.
  • Home services, such as bathroom remodeling, home repair, cleaning, damage restoration, and landscaping.
  • Senior care, including senior home referrals and in-home care.
  • Personal care, such as hair care, eyelashes, massage, and chiropractic.
  • Real estate, including home flipping, property management, and home inspections.

There are also many kinds of business models. Some are home-based, others are mobile, and others require a brick-and-mortar location. Some have many employees, some have none or few. The role of the owner also varies, but in most cases you’ll be in an executive and sales role, and hire employees to do most of the labor. Some are even designed for multi-unit ownership, to scale to any size that you want.

Finding Franchise Opportunities

You can try to Google for franchise opportunities, but chances are the popular ones are sold out in the good locations, and there’s no way to know the quality of the rest without doing detailed research on each one. A franchise consultant can help you cut through the mess, and find the opportunities that would be the best match for you. As a franchise consultant myself, I offer these free services:

  • Understand your personal goals and strengths. These are far more important to finding the right business than starting with a specific brand or industry in mind.
  • Find franchise opportunities that match your financial and lifestyle goals, and play to your strengths.
  • Research each franchise to understand the business model, unit economics, competitive advantage, and owner role. You’ll have regular calls to learn about a franchise, and I can help you ask the right questions. I’ve researched hundreds of franchises myself.
  • Explore financing options. There are a number of different ways to finance a business.
  • Answer your questions objectively. I’ve owned two franchises myself, and I work with a company called FranNet that has been placing new franchise owners for over 30 years.

Best of all, it’s free and there’s no obligation. Even if you decide that franchising isn’t for you, I’m happy to help you learn about it.

Contact me today and let’s set up a short call to get to know each other!

Please give me a few options for times that work for you. I’m available most days, including evenings.

How I Left My Job, Started My Own Business, and Semi-Retired

For the first 15 years of my career, I was like many “successful” people. I had a good education, I had a job that I was good at, and I was climbing the career ladder. But I wasn’t happy. I was frustrated with corporate bureaucracy and politics. I was tired of the Monday to Friday grind with conference calls at all hours, and I wanted more freedom. I also wanted my work to have more impact in the real world.

I wanted a change, but what? I could go to another company, but I’d end up back in the same place in a few years, frustrated and burned out. I could leverage my tech background to do a startup, but that requires 60+ hours per week and most startups fail. I had always wanted to run my own business, but I didn’t have any business experience.

I decided to explore franchise ownership because they provide a proven business model, training and support, and centralized operations. This makes it possible to run a successful business without any prior industry or business experience. You’re copying an existing business that’s already successful in other locations, so you don’t have to invent and do everything yourself. Ultimately, franchises have a higher success rate than self-started independent businesses.

I worked with a FranNet franchise consultant, explored several business opportunities in detail, and decided to go with a massage franchise. Why that business? Because it met my financial and lifestyle goals: It was a business that I could believe in, helping people feel better. It was a growth industry with good profit potential. And it was a semi-absentee business model, where I could hire a manager and focus on an executive role in the business. I explored a number of options with FranNet, but ultimately this was the best business for me at that time.

Download the FranNet Roadmap to Success, your guide to getting started in business.

The franchise taught me what I needed to run the business. They had guides and checklists for everything from finding a location to hiring employees to operations procedures. I had a business coach and a network of other owners that I could reach out to anytime that I needed help. Plus I listened to business audiobooks on my own, on topics like marketing and customer service, to take the business to the next level.

Since I wanted a semi-absentee business where I didn’t have to be there every day, I hired a manager to run the day-to-day operations. She helped me grow the business much faster than I could on my own. We followed the franchise playbook for hiring and training employees, built out a great team, and quickly grew the business to be #1 on Yelp.

One of my favorite aspects about being a business owner is the freedom. Instead of having a Monday to Friday grind, I can work on my own schedule, do the work I like the most, and delegate the rest. I only had to go into the business a couple times a week to check on things, and get a free massage of course! I took at least one vacation a month, traveling to places all around the world. I’m always able to keep up with the business through the internet and email.

Owning a business isn’t without challenges, as things often go differently than expected. But it’s a great opportunity for personal growth, and I learned to overcome each challenge and grow my comfort zone. I grew from an employee mindset to become an entrepreneur and CEO! I even took it one step farther, to leverage the business to create the life I had always wanted as an Easy Entrepreneur!

It took an upfront investment to get started, but I grew the business to be profitable, and joined a second franchise as a consultant to help other people grow their businesses. With these, I was able to fully replace the income from my tech job, while working part time! There are also many tax benefits to business ownership, so I got to keep even more of my money.

This was the semi-retired lifestyle that I had always dreamed of! I traveled all over the world, had more time to spend with my family, and learned new hobbies like writing and music. I had the freedom to work where and when I wanted, and my businesses provided enough income and gave me direction.

I’ve since sold both these businesses, and started a couple of other ones. I’ve also become a FranNet franchise consultant myself, and help other people find their dream business opportunity.

Let’s chat if you’d like to learn more about business ownership for yourself!

I love to share my experience with others, learn about you, and help you learn about your best options for business ownership. There’s no cost and no obligation, so let’s set this up today!

Please give me a few options for times that work for you. I’m available most days, including evenings.

21 Reasons Start a Business in 2021

It’s a new year, and things are looking up! Here are some reasons why it’s a great time to start your own business:

  1. 2020 is over. The vaccine is rolling out and the pandemic will finally wind down. The business environment is ready to restart.
  2. Start looking now, and you’ll be in business as the economy reopens. It typically takes 3-6 months to explore your options and start a business.
  3. Pent-up consumer demand after a year of shutdowns.
  4. Less competition, as weaker businesses closed during the pandemic.
  5. Location, location, location. Retail vacancies won’t last long in the Bay Area!
  6. Great time to hire talented employees.
  7. Record low interest rates for business financing.
  8. Income potential. Scale your business empire with multiple units.
  9. Diversify your retirement portfolio.
  10. Build an asset that you can sell down the road.
  11. Achieve financial independence and early retirement.
  12. You’re the boss! Escape corporate politics and take control of your career.
  13. Freedom to work when you want, where you want, and how you want.
  14. You don’t have to quit your job to start exploring business opportunities. You can even start a part-time businesses and keep your job or have time for other things.
  15. Work / life balance. More time for family and to do the things you love.
  16. Franchises provide a proven business model, and the good ones have grown stronger during the pandemic.
  17. You don’t need experience. A franchise will teach you how to run the business.
  18. Choose a business model that’s both pandemic and recession resistant.
  19. Many industries and business models to choose from. B2B, education, fitness, personal services, home repair, automotive, light manufacturing, and fast-casual restaurants, to name a few. Find one that fits you.
  20. Join an established or emerging brand.
  21. Learn something new. Give yourself the opportunity to evaluate if business ownership is right for you, even if you decide that this isn’t the right time for you.

Starting a business requires research and planning, and I can help. FranNet has helped thousands of new business owners get started, at no cost to you. Let’s have a call to learn more and get started today!

Remarkable Ways Franchise Businesses Are Surviving and Thriving the Pandemic

No one will question that 2020 is been a tough year for many businesses. Many had to shut their doors for a period of months, and some will never reopen. However, many have pivoted their business models to adapt, and we are starting to see the light at the end of the tunnel as more areas reopen.

Franchises have a distinct advantage over independent businesses in 2020. They have the collective intelligence of hundreds of business owners, plus an experienced franchisor with an MBA executive team. They can share ideas and respond quickly to challenges as they arise. They can also support each other, to help navigate the complexity of government support, and just to get through the tough times. As Walter Paton said, “We are stronger together than we are alone.”

I spent the last week meeting with over 60 different franchises, learning how they’ve adapted during the pandemic. It was full of surprises, to see how they’ve adapted and some are even thriving!

One residential cleaning company, backed by a billion dollar parent company, helped their franchisees apply for federal money quickly, before it dried up, to the tune of $700,000 per location. That’s a big cushion to get through the tough times, and much of that won’t have to be repaid!

A boutique fitness gym has already reopened 95% of their locations, some moving to outdoor classes. They didn’t have a single location permanently close its doors, though some of their independent and big box gym competitors have. They even opened new locations during the pandemic with record signups of 300-400 members before the gym even opened its doors!

One in-home tutoring company quickly pivoted to online tutoring, using software they had already been developing, and found an added benefit. Now different franchise owners can share remote tutors, helping save costs and cover when someone is out.

Another after-school enrichment franchise added a new program to teach children in small groups — their covid bubble. The client picks the group of friends and the location, and the franchise provides a safe program for the kids (and gives the parents a break for a few hours).

Some essential businesses like in-home senior care and home repair services have even seen an uptick this year. One brand has seen a 79% increase in appointments from 2019 to 2020!

So, this is not the end of the world for business ownership. It’s just changing times, and in fact it’s a great time to start a franchise business, as the independents struggle and close, and there are more retail vacancies.

If you’d like to learn more about these and other franchise businesses, let’s chat! I help people who want to learn about business ownership, but don’t know where to start, all at no cost and no obligation. Book an appointment, or contact me to set up a time that fits your schedule.

Are You Ready to Be a Business Owner?

12 Questions To Ask Yourself

Starting your own business is a life-changing event, and isn’t something you should take lightly. At the same time, many people dream about it, but never take action to get started. When is the right time to start a business? Are you ready?

Here are some critical questions that you should ask yourself. Please consider your answers thoughtfully, and in some detail. I suggest you print this list and write down your answers. If you are married, you should discuss them with your spouse, and perhaps do this together.

  1. What’s going on in my life right now that makes me want to be a business owner? Why don’t I just keep doing what I’m doing?
  2. In 15 words or less, what is my “compelling reason” for owning a business now?
  3. What are my goals, both short term and long term, as a business owner? How do I envision my lifestyle as a business owner, and what do I want the business to do for me? Here’s my list of the benefits of business ownership to get you started.
  4. On a scale of 1 to 10 (10 being highest), how serious am I about owning a business now? If not now, what’s holding me back?
  5. On the same scale, how serious is my spouse about us owning a business? If your spouse is not supportive, maybe you should reconsider.
  6. How much time can I invest in the business to get it started? In the long run, how much time do I want to spend on the business?
  7. How much time can I spend right now, hopefully at least a couple hours per week, to do research and explore my options?
  8. How much of my own money am I willing to invest in a business? How much do I need to support my household during the initial growth phase of the business?
  9. How do I plan to finance the business? If you don’t know, contact me to learn about financing options.
  10. What are the characteristics of my ideal business? This can include things like the venue, industry, number and type of employees, and your work hours. Are there any characteristics that I want to avoid? Make a list.
  11. Do I have a specific business idea? Has it been tested in other markets, and do I have experience mentors to help me get started? If not, am I open to exploring franchising, which would provide an established brand, a proven business model, and the training and support I need to be successful?
  12. Am I open-minded to explore other business ideas, to make sure I find the right one where I’ll be most successful? It’s often best to explore 3-5 business models before deciding which one to pursue.

Next Steps

If you’re not ready to start, what’s holding you back? What are some concrete steps that you can take to get ready, and how will you know when you’re ready?

If you’re ready to start and have a business idea, the best place to start is to do research on your idea to make sure it’s viable. Read about other businesses in the industry, learn best practices, develop a business plan, and review that plan with experienced mentors. It may also be worth exploring other ideas, just to compare and make sure you’re focusing on the right thing.

If you’re not sure what business to start, you may want to consider exploring franchises. Here you will get a proven business model, an established brand, and training and support to get started. It’s a lot easier and has a higher success rate than starting a business on your own. I offer free consulting to help you explore your options, so schedule a free 1-1 all to get started.

Is 2020 The Right Time To Start A Business?

This certainly has been a crazy year. The COVID pandemic has shut down the economy, and everything has changed. It’s the greatest period of uncertainty that we’ve seen in a lifetime.

Many businesses have struggled and even closed. So why would anyone even consider starting a business now?

Looking Back at the Last Crisis

Buying my first investment property during the Great Recession

Let’s look back to the 2007-2008 financial crisis. Housing prices plummeted, and the real estate market was flooded with foreclosures and short sales. The media declared that the American Dream was dead, and nobody would want to own a house again. End of story, right?

Not so fast. Smart investors, who don’t follow the herd, bought those houses and turn them into rentals. Fast forward ten years, and both rents and housing prices have doubled and even tripled in some places. Those investors, myself included, made a fortune!

I see parallels to today’s business landscape. Many businesses have shut down, leaving vacancies in the shopping centers. Others are limping along, through delivery services and government aid, and their fate is still undecided.

When this passes, and life returns to normal, there will be many opportunities to replace those businesses.

Crisis Brings Opportunity

“Never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.”

Rahm Emanuel

This pandemic brings several clear business opportunities.

The first is the cost of doing business. With all the retail vacancies opening up, you may be able to negotiate a lower rent. Interest rates are also low, making the cost of borrowing money cheaper.

The second is talent. Many people are out of a job, so you have access to a much larger labor pool and can hire better people.

A third advantage is knowledge. Nobody saw this pandemic coming, and existing businesses weren’t designed to adapt. With a new business, you can choose an industry that’s pandemic resistant — such as home services or senior care — or start with a business model that’s adapted for social distancing.

Lastly, as things open back up, there will be fewer businesses competing for the same income. This means a bigger piece of the pie for those who do survive (or start) during the pandemic.

Looking Forward

History shows that this isn’t going to last forever. 9/11 didn’t stop airline travel forever, and the Great Recession didn’t end the real estate market. This pandemic will pass too, in one way or another.

Looking forward, ask yourself where you see things a year from now. Will we be back to normal, with a vaccine and the virus under control? Will there be a bump in consumer spending as people are itching to get out? We’ve already seen how crowded the bars and beaches got when they reopened, and it’s not even safe yet. At the very least, we will learn to adapt, with cleaning and social distance protocols that keep businesses and consumers safe.

If you want to be in business a year from now, this is the time to start planning. Here are some of the things that it may take to get your business fully operational:

Planning the steps to open a business
  • 1-3 months to explore business opportunities.
  • 1-2 months for planning and paperwork.
  • 1 month to secure funding.
  • 1-2 months for site selection and lease negotiation.
  • 2-3 months to build out a location.
  • 1 month to hire and train employees.
  • 3-6 months after opening to ramp up operations, build up a customer base, and get out the glitches.

Add that all together, and it can easily take 6-12 months to get open and fully operational. So, if you want to be in business a year from now, today is the time to get started!

One mistake that investors often make is to “wait for the bottom.” If you waited until the bottom during the 2007-08 real estate crisis, you would have missed it. By the time that the bottom was apparent, large investment firms were buying all the distressed properties directly from the banks, and the opportunity was gone.

How To Get Started

If you’d like to own a business and don’t know where to start, I suggest to explore franchising. A franchise provides a proven business model, training and support, and established business systems. You can learn the details of the business and even talk with existing owners before you make any decision about which business to start. Even if you decide not to do a franchise, it’s a great way to quickly learn about different business models and industries.

I can help you explore franchise business ownership, at no cost and no obligation. My first two businesses were franchises, and I work with a company called FranNet who have been helping match business owners with franchises for over 30 years. Schedule a free consultation today.

What Gets You Out Of Bed In The Morning?

The Japanese have a term ikigai (pronounced Ick-ee-guy) that translates to your “life purpose,” or as I prefer, your “reason to jump out of bed in the morning.”

What’s your reason to jump out of bed in the morning?

For most people, it’s that pesky alarm clock. Perhaps they’ve hit the snooze button a few times, after tossing and turning all night from the stress of the day before. They dread getting up in the morning.

But as an Easy Entrepreneur, you get to create the life you want to live! So, let’s try this again.

If you could have the life you always wanted, what would give you a reason to jump out of bed in the morning, excited to start a new day? And no, don’t say “sitting on a beach” because that gets old quickly. What would give your life more purpose and keep you energized every day?

One common way to approach finding your ikigai in the modern world is to make four lists: What you love doing, what you’re good at, what the world needs, and what you can get paid for. Your ikigai is the cross section of these lists.

Your goal as an Easy Entrepreneur is to mold your business into something that gets you excited to jump out of bed every morning.

For example, here are some things from my lists:

  • Things I love: adventure, outdoors, travel, learning, feeling healthy, eating, building things, helping people, being happy, ice cream.
  • What I’m good at: computers, finance, learning, organizing things, solving complex problems, math, eating ice cream.
  • What the world needs: teachers, leaders, world peace, more empowerment, more opportunities for people, ice cream that is actually healthy.
  • What I can get paid for: teaching, business consulting, running a business, engineering.

Putting this all together, my reason to jump out of bed in the morning is to “distill the principles and practices of the Easy Entrepreneur, and teach others how to run a successful business and live a great life!” It’s something that I’ve been excited about for several years, and gets me up every morning without needing an alarm!

That’s my ikigai, what’s yours?

How To Get Started In Business

The most important step in starting a business is choosing the right business. There are an endless number of business ideas to choose from, but which one will make money, and which one is right for you? Do you want a restaurant, a travel agency, an online store, a tech startup, or to provide B2B (business to business) services? Do you want to follow your passion, or follow the money? And if you have a basic idea, how do you get started?

There are three basic ways to start a business. Each has its strengths and tradeoffs, and we’ll go into that in more detail.

  1. Start a business from scratch.
  2. Buy an existing business.
  3. Buy a franchise.

Start a Business From Scratch

The sky’s the limit when you start a business from scratch. You can do any kind of business you want, from teaching Yoga classes to doing a high tech startup. Whether based on a hobby, professional interest, or a family business, you can organize it around things that you’re passionate about. You have total control, get to make all the decisions, and can be as creative as you want. As long as you pick something that’s profitable and scales, there is no limit to how much money you can make!

AdvantagesDisadvantages
Total control
Make all decisions
Room for creativity
No predetermined rules
Large upside potential
Build a business from your passion
Must create systems from scratch
Too many decisions
Slow ramp-up
Long learning curve
Limited financing options
High failure rate

That said, starting a business from scratch has the highest risk. You have no structure or support, and you have to make every decision yourself. There is a long learning curve, both for you to learn how to run the business as well as your competitors, as well as for the business to grow and become profitable. Any mistake could be catastrophic.

If this is the path you want to take, here are some steps to get started:

  1. Do your research. Find books or case studies about similar businesses, and try to learn from their success and mistakes.
  2. Make a business plan. Develop the business model on paper, and make sure it makes sense. Come up with projections to see if you can really make money with it.
  3. Get professional help. Find a mentor, such as from SCORE, who can review your business plan and provide guidance.

Buy an Existing Business

If starting from scratch sounds like too much work, you can also buy an existing business. It will come with existing customers, business systems, and employees. It will have established financial results, so you know how the business is doing. It may even be profitable and have a good reputation in the community. If the existing owner has moved or is disengaged, you may be able to take the business to the next level and make it even better.

AdvantagesDisadvantages
Established financial results
May be profitable
Established market
Existing customers
Good reputation
Employees
Systems in place
Owner or lender financing
Limited options
May be losing money
Bad reputation
May be overpriced
Poor training and support
Hidden seller motives
Employee defection
Higher debt service

There limited options when you look at businesses for sale. What’s worse is that many of them aren’t doing well, and you don’t want to buy a lemon! The first question you should ask the owner is why are they selling? Most listings say “owner is retiring” or “personal reasons” which is often an excuse for a business that’s not doing well. It could be losing money, have a lease that’s ending, have a bad reputation in the community, or be in a market that’s declining. If it’s profitable, it may be overpriced.

If you’d like to explore buying a business, here are some steps to take:

  • Explore business listings. A couple sites that list businesses for sale are BizBuySell and BizBen.
  • Do your homework. Talk with the owner to find out why they are selling, and what the biggest challenges and opportunities are. Secret shop the business, secretly if the employees don’t know it’s for sale, and compare it to its competitors both online and in person. Review the financial statements. If it’s a struggling business, make sure it’s something you can turn around.
  • Work with a business broker. Like a real estate agent, they can help you navigate the issues when buying a business.

Buy a Franchise

The easiest and fastest way to go into business is with a franchise. Here you are buying the rights to use an existing brand with a proven business model. They have already worked out the kinks and are profitable in other locations, and have business systems that help you ramp up faster. Most franchises have a higher success rate than a starting a similar business on your own. You also don’t need any business or industry experience – they provide training and ongoing support to make sure you succeed. A franchise should also give you a lot of information up front, before you make any decision, on the costs associated and what’s expected of you, and even let you talk to existing owners to get their unbiased opinion.

AdvantagesDisadvantages
Brand name recognition
Proven business model
Upfront research process
Business systems
Training and support
More financing options
Owner network
Higher success rate
Fewer industry options
Structured operating system
Territory restrictions
Can only sell their products
Ongoing royalty payments

The primary downside of franchising is that you are purchasing an existing business model, and you have to follow their systems. That doesn’t mean that there isn’t room for creativity, but you can’t start selling pizza at a McDonald’s franchise (unless they change the menu, and then you may be required to sell pizza!). Franchises tend to thrive in existing and growing industries, so there are fewer industries and not many options in areas like high tech. There are also costs associated with a franchise such as an initial franchise fee and ongoing royalty payments, though a good franchise returns that value in training and support.

If you’d like to explore franchising, here’s how to get started:

  1. Work with a franchise consultant. Like a real estate agent when you’re looking to buy a house, a good franchise consultant will help find the right opportunities for your lifestyle and financial goals. There are too many franchise out there and not enough information online to find them on your own, and a local franchise consultant can also provide expertise for which ones are growing in your area. (Full disclosure: I’m a franchise consultant and offer a free consultation if you’d like to learn more.)
  2. Do your research. Any good franchise will want you to make an educated decision before you decide to sign with them, and will have an in-depth process to teach you about the business. However, this information is not generally available online (where their competitors could see it), so you will have to work with them through their process. They will share things like the business model, costs, financial results, contracts, and even existing owners to talk with! Take your time with this process, get professional help when needed, and make sure you understand all of the information. This is another area where a franchise consultant can help you out.
  3. Be professional and follow the process. When exploring a franchise opportunity, make sure you follow their process. Be professional and don’t skip calls with them. If you’re too busy, just let them know. It’s better to say “no” or “not now” than to disappear while they are trying to get ahold of you. Remember, they are also evaluating you as a potential owner, and they may turn you down if you don’t follow their process.

Choosing What’s Right For You

So, if you’re still asking what’s right for you, here are some thoughts:

  • If you want to follow your passion, like do a tech startup or build a business around a hobby, then it’s best to start from scratch. Just be aware that the failure rate is higher.
  • If you don’t have business experience and want the lowest risk, explore franchising. Even if you don’t go this route in the end, you can learn a lot from talking to a few franchises.
  • If you want to buy a business, you’re limited to what’s available, and watch out for lemons. As a side note, there are sometimes franchises for sale, and that can be a great way to get a head start, but I recommend to pick the franchise brand first and then see if they have any resales.
  • If you want a part-time business where you can keep your job, spend time with family, or semi-retire like I have, there are a few options. You can start something as a side business, such as a travel agency or Airbnb, or there are franchises designed for part-time ownership.

I hope this article was helpful, and please feel free to reach out if you’d like to have a free consultation to talk about your options!

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Giving Thanks for Business Ownership

November marks the anniversary of when I left my tech job in 2013 to start my first business, as well as when I sold it five years later. It’s been an incredible journey, as I’ve gone from employee to entrepreneur to semi-retirement! Each step along the way was a new learning, full of mistakes and challenges, and helped me expand my comfort zone and grow into a better version of me.

Looking back, there are so many things I’m grateful from this journey. Here are a few:

  • I’m grateful for the freedom and independence that comes from being my own boss. I can pick when I work, where I work, and what I work on. I can run my business in ten hours per week, and spend the rest of my time on personal growth. I can have #MyKindOfMonday anytime I want, from partying on a cruise ship to hiking in the Canadian Rockies to spending time with my aging parents, while many people are stuck in the grind.
  • I’m thankful for the pride and purpose of my work. This was both true when I had 25 employees to support, as well as now when I’m giving back to teach other would-be entrepreneurs. I tried to find that in a giant tech company, but it was always squashed by corporate politics.
  • I appreciate that I’m free from bureaucracy, bad bosses, and bullsh*t. I control who I spend my time with, and I have so much less unnecessary stress.
  • I’m grateful for the mistakes I’ve made that have led me to this place. By being willing to take risks and try, I was able to learn and grow. Sure, I fell down many times, but I picked myself up every time, and expanded my comfort zone and expertise. Now I’m much more resilient and secure.
  • I love that I never stop learning from consuming books, blogs articles, podcasts and audio books about business and personal growth. I’ve learned to be a better leader, a better business owner, a better writer, and a better person.
  • I’m thankful for the career growth. I hit the corporate ceiling in my old job, where there weren’t many positions above me open, and I’d have to fight tooth and nail to get one. I witnessed the executives who worked 60-80 hours per week and then became burned out alcoholics. As an entrepreneur I jumped right to CEO, but on my own terms. Before you call out bull (which it was at the beginning), it’s a self-taught role that I grew into. Now I have no problem making quick business decisions, leading my team, networking, or geting executive level work done. I would have no problem to get an executive position at another company, if I wanted to.
  • Most of all, I love that I’m happy — happier than I’ve ever been in my life! Through meditation and mindfulness, I’ve exorcised my nagging inner voice, and replaced it with a supportive cheerleader. I’ve gone from insecure to inspired, and rid myself of decades of unnecessary baggage. I have found true success, in my heart and soul.

We learn and grow and change every year. What are you thankful for from the past year? If you haven’t explored business ownership for yourself, maybe next year is the year for you! It is never too late to start!

How To Start A Business While Keeping Your Job

What if you could run a profitable business while keeping your job? You could have the best of both worlds — a stable income and short-term security from the job, and a second income and long-term security from the business. Once the business is big enough, you might be able to quit your job and semi-retire, and spend more time on activities that you love like your family or traveling around the world. You could also expand to more locations, cash out and sell the business, or just hold on it for the extra cashflow!

I’m not making this up, because I’ve done it! I ran my first business (a therapeutic massage franchise) in around 10 hours per week. I spent the rest of my time traveling, and started a new gig as an Area Director for the massage brand. I only went in to my shop about twice a week, when I was in town, and that was often to get a massage! After five years, I sold the business for a profit. Now I’m semi-retired and help other people go into business.

So, how can this be done? The easiest solution is to buy a semi-absentee franchise, which is basically a business-in-a-box that’s designed for this kind of operation.

Semi-Absentee Ownership

Semi-absentee is a model of business ownership where the owner works on the business, not in the business. Typically you hire a manager to run the day-to-day operations, and you spend your time focusing on the bigger picture aspects of the business.

I didn’t give massage when I ran the massage business. I hired massage therapists for that, and receptionists for scheduling appointments and customer service. Then I had a manager to take care of the employees, operations, and customer issues. The franchise provided many business systems, training, and operations support. My job was to take care of financing, marketing, and business strategy. I worked part-time, on my own schedule, and from home most of the time.

Here’s an example of the roles that you and the manager could take, though you can customize this however you want.

Owner’s RoleManager’s Role
Invest in business
Manage the manager
Manage the finances
Decide on marketing & promotions
Design strategy to grow business
Day-to-day operations
Hire & manage employees
Handle customer issues
Implement marketing & promotions
Implement business systems

However, semi-absentee is more than just an investment. Any business takes work, and you need to keep the business going in the right direction. You should expect to spend at least 10-20 hours per week on the business, though you may be able to decide when and where those hours are. You should also expect to spend more time at the beginning to get the business up and running, though a franchise can help with that.

Why a Franchise?

If you start a business from scratch, there is a huge learning curve and long time to build out the systems you need. You have to make every decision yourself, and it’s easy to make a mistake and go down the wrong path. Only about two thirds of businesses survive the first two years, and the failure rate is even higher for restaurants and tech startups.

With a franchise, you get a proven business model and a lot of support, which helps you get started faster. Franchises also have a higher success rate. FranNet, the company I work with, found that 91.2% of the franchises that they placed were still open after two years. That’s much better odds than starting on your own!

While every franchise is different, you typically get the following:

  • An existing brand
  • A business model that’s been tested and refined in other locations
  • Marketing support to bring in customers faster
  • Training on how to open and run your business
  • Ongoing operations support
  • Business systems such as software and brand trade secrets
  • Network of other owners
  • A franchisor who has a financial interest in your success

Furthermore, there are franchises that are specifically designed for semi-absentee ownership. They are built so that the owner can hire a manager for the day-to-day operations, and the franchise may even provide training and support directly to the manager. These are in many industries, including fitness, personal care, cleaning, pet services, retail stores, automotive, B2B, and many others.

The other great thing about franchises is that you can do a lot of research before you get started. You can find out things like the business model, expected startup costs, ongoing fees, training and support, and the franchise contract — all before you decide which franchise to work with.

What’s the Catch? Investment Level

Any business is an investment in both money and time. Semi-absentee businesses are typically a higher investment, because you need to pay a manager. However, they also scale better, because you can run multiple locations because you don’t have to be there every day. Once you have learned how to do one, it’s easy to replicate.

How much is the investment? That varies greatly from business to business, and there’s not a direct correlation between investment and return (but neither is a business a better bargain because it seems “cheap”). Some service franchises can be started for less than $100k, and opening a McDonald’s costs $1-2.2 million!

The good news is that because franchises have already opened many locations, each one can tell you the expected investment. The other good news is that, like a house, it’s easy to get a loan so that you only have to invest around 30% of your own money. In fact, it’s easier to get a loan for a franchise than starting on your own, because the franchise brand already has a history of success.

Getting Started in Business Exploration

There are over 3,600 franchise concepts out there in 90+ industries, and you need to find the right one for you. You can search the internet and do your own research, but much of the information you need is hidden, and the franchises that you’ve heard of may have already sold all the good territories.

Would you buy a house without a real estate agent? Like a realtor, a franchise consultant can help you identify which franchises match your goals and work style. They can help you through the process of talking with each franchisor, to understand their business model and decide if it’s right for you. Best of all, there’s typically no cost to you, and no obligation if you decide that business ownership isn’t for you.

I work with FranNet, whose franchise consultants have been helping people go into business for over 30 years. I can work with you to understand your needs, recommend potential franchises, and help walk you through the process. As I mentioned, there’s no cost and no obligation, and I’m available for questions anytime.

Here’s an outline of our process:

  1. Fill out a Personal Franchise Assessment, which looks at your values, motivation, work style, and investment tolerance.
  2. We’ll meet 1-1 and build out your personal business model, which we use to identify what kind of business you would want to build.
  3. We’ll identify some potential franchises that match your business model, and you can decide which ones to talk with.
  4. You’ll speak with the franchisor, and they will give you information about their business, including the Franchise Disclosure Document which includes estimated startup costs, financials, and the franchise contract.
  5. If you like a franchise, you’ll get to speak with existing franchise owners and ask them questions about what it’s like to own the business. In some cases, there may even be local owners who you can speak with to learn about the local market.
  6. If a franchise seems promising, you’ll likely have an opportunity to go meet the executive team and make a final decision whether to go forward.
  7. Open the business! Every good franchise has a process to help you get your doors open quickly.

If this sounds good to you, please reach out to me to get started.

Having a Business / Work / Life Balance

Here are a few tips for juggling a semi-absentee business, a job, and still having time for a life.

  • Follow the system. Franchises have developed many business systems and tested them across many locations. Yet some franchisees get obsessed doing things their own way, and focus on the wrong things. Especially as a semi-absentee owner, it’s better to follow the system and get it 80% right, than to focus on the other 20% and get 80% wrong.
  • Hire, delegate, and trust. Nobody is going to do things as well as you would, but it’s important to delegate work and let them make mistakes. One of the first things I did was give my manager a credit card (with a spending limit), so that I didn’t have to be involved with every purchase. Give them direction and motivation, and let them do their jobs.
  • Control your schedule. Many business owners become workaholics, as there is always more that you could work on. While my business was open 11 hours a day for 7 days a week, I mostly worked from home, took weekends off, didn’t work past 8pm, and only went in a couple of times a week (when I was in town). I had to make it a discipline NOT to work too hard, so that I didn’t burn out.
  • Learn as you go. I knew little about running a business before I bought my first franchise, but I quickly grew it to be the biggest location in California and the #1 business on Yelp in my city. I learned from the franchisor, local business seminars, blogs (like this one), books, and free audio books from the library.

Ready to get started? You can jump right in with the Personal Franchise Assessment or reach out to me and we can chat about your goals and questions.

“Do something today that your future self will thank you for.”

Sean Patrick Flanery

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