BRAND NEW DAY, SAME OL’ STORY
It’s been a long day. You pick up your work bag from the backseat and walk slowly to the door, exhausted from another disenchanted day in the office. Over the jingle of the keys in the lock, you hear voices inside—your family bustling about, excited for you to open the door and spend time with them. You’re tired. And you’re ready for something different. Something more. Something that allows you to invest your time in what and who you love. But where do you even begin? Whether you’ve reached your limit in promotions, lost joy in your daily tasks, or carried an entrepreneurial itch for years—unsure what to do with it—we have a guide to help you discover what type of new business owner you’re equipped to become.
WHAT ARE THE 3 TYPES OF NEW BUSINESS OWNERS?
Typically, people think of new business owners in the Shark Tank category—the humans who hope to develop a unique, marketable product or service. While this encompasses a large majority of owners, there are two other areas you may be missing There are 3 distinct ways to become your own boss, and we want to help you determine which, if any, is the best option for you. Are you ready to envision your future as a proprietor? With the guide below, you can decide if you are most equipped to:
- Start a new business from scratch
- Take over someone else’s business
- Get your start as a franchise owner
WHAT KIND OF NEW BUSINESS OWNER ARE YOU?
There are key perks and downsides of each business option.
THE MADE-FROM-SCRATCH APPROACH
When you launch a new business from scratch, the sky’s the limit. You have ultimate freedom in decisions involving branding, hiring, promotions, business locations, target market, industry…pretty much every aspect of your new venture. But with ultimate freedom comes ultimate risk and a lot of work. Launching on your own means making decisions that haven’t been tested before, working without mentor support, and the hardest part: developing a sustainable product or service idea.
Characteristically, these individuals are true-blooded entrepreneurs like this guy who built a 7 figure biz on the side. These trailblazers like to figure everything out—from value proposition and market sweet spot to backend systems and the types of players you need to build a team.
THE HANDWRITTEN RECIPE
The business owning equivalent of a handwritten recipe is buying out someone else’s company. Although you sacrifice some freedom here since you inherit the branding and reputation of the previous owner, you also inherit pre-made systems, clients, and industry knowledge that might be the ticket to happy taste buds.
For individuals who have already owned a business and are interested in diversifying revenue (and have access to a large amount of capital), buying someone else’ company may be the preferred approach.
THE STORE-BOUGHT MIX
A franchise comprises all the pieces you’d find in a store-bought dessert mix. In this approach, you surrender a multitude of decisions in exchange for a known brand name, tested processes, upper level support, and the inner makings of a very successful business.
Franchising seems to be a great fit for “corporate refugees.” These people typically have strong business acumen and ambition. They are interested in monetizing a business that’s already proven successful.
ON YOUR MARKS, GET SET, BAKE
If you answered mostly a’s, you might need to launch your own business from scratch. For more details on getting into the entrepreneurial mindset and getting your business off the ground, listen to our interview with Laura Roeder, founder of meetedgar.com. If you answered mostly b’s, you may want to look at purchasing a business that’s already in session. See the pros and cons of buying someone else’s business in our interview with Ace Chapman, an entrepreneur who made his first million by the time he was 21. Over the years, he’s bought and sold over 40 businesses. If you answered mostly c’s, you could be fit to run a franchise. Listen to the podcast below for the essential tips for finding the right franchise. You’ll love hearing from my buddy, Dru, a franchise consultant who matches potential franchisees with the perfect franchise.
THE QUICK GUIDE TO FINDING YOUR FRANCHISE FIT
The first step to finding franchisee success is finding a franchise that fits your budget, lifestyle, daily role, and revenue goals. Use the questions below to determine your non-negotiables and find your perfect franchise fit.
Step 1: Have an open mind.
Typically, when people hear the word franchise, their minds go to McDonald’s. While fast food chains are the most recognized franchises, there are plenty of options available in commercial cleaning, retail, tourism, personal fitness, property management, professional development…the list goes on and on. It’s easy to think of what type of franchise you’d like from a consumer perspective. The challenge for potential business owners is to make decisions from an owner perspective. Take Advantaclean, for example. This water restoration and mold remediation business is anything but sexy, but when you understand how protected your business is during economic downturns, you may find yourself whistling a different tune. As long as people own homes, they will need your services—providing long-term viability for your business.
Step 2: Understand your why.
You have a blank canvas before you. Take time to determine your goals for your business. Do you want a business that can run without your presence, enabling you to travel and live from a beach six months a year? Are you in it for the money? Do you love the thrill of starting new businesses and plan to keep opening more and more? Knowing your why is essential for finding your fit.
Step 3: Think about your role in customer acquisition.
Are you an extrovert who feels comfortable operating as the face of the business? Many franchises require their owners to be out in the community, networking with other business owners to secure sales. If you’re an introvert, you probably wouldn’t enjoy this role, so you may want to look at the various options that provide inbound lead generation. Contrary to what you might believe, you don’t have to be a natural salesperson to operate a business successfully…if you select the right franchise.
Step 4: Determine your budget.
From the beginning, you’ll need to understand how much capital you have available. Decide how much you can personally invest and how much you’ll need from external sources.
Step 5: Decide how many employees you’d like to lead.
Think critically about your future goals. You need to know if you want to manage a large staff of employees or if you’re more comfortable with a tight-knit team.
Step 6: Calculate how many hours you can invest.
Some franchisees want to get their hands dirty in the day-to-day work, and others want the flexibility to pop in and out whenever they desire. You’ll need to know if you’re a hands-on owner or a delegating leader. If you limit the hours you’re needed in the franchise, you might even be able to build a second business with your free hours.
Once you’ve worked through these steps, you will be more equipped on your franchise search. For extra help from a franchise expert, schedule a 60-90 minute conversation with Dru Carpenito, Franchoice Consultant. A quick call with Dru will provide key insights, tips for finding capital, and experienced guidance in finding your franchise fit.
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