Surveys routinely find that more than half of Americans want to own their own businesses — and we see even higher percentages among specific groups. For example, 64% of young Latinos see entrepreneurship as their goal.
Franchise business opportunities offer a smoother route toward fulfilling this dream. Using a system that has already been proven to work, franchisees can take a step by step approach toward successful business ownership.
Some franchises require a large investment and full time commitment from the start, but others make it possible to begin with part-time ownership and scale up. Which franchises are most suited to this more gradual approach?
- Franchise businesses with low startup costs, like Kinderdance. Kinderdance franchisees have a small initial investment, develop their own schedules, and don’t have the expenses of a building, inventory, or employees.
- Franchises with limited overhead, like Naturals 2 Go. With no employees, no building, and no receivables to keep track of, Naturals 2 Go franchisees can start small and build up their business over time.
- Work-from-home franchise opportunities like The Drug Test Consultant. DTC works on client sites, so there’s no office to keep open. That means a lower initial investment, lower overhead, and the possibility of part-time work while franchisees build their business.
- Franchise opportunities with flexible schedules, like Visible Link. Since Visible Link franchisees offer consulting rather than providing the direct services, it’s easy to start part time, setting consultation appointments around the schedule of your “day job,” and work up to full time.
If you start with a part-time commitment, how will you know when it’s time to take the plunge?
First, make sure that you know what you’re doing. Franchise businesses come with step-by-step instructions and a proven process, not to mention training and support. However, there is still a learning curve. There are still opportunities to get better. There are certainly ways to refine the franchise system to be perfect for your particular market. Even just getting good enough at using the system to guarantee a consistent customer experience can take time.
Do this before your survival depends on it.
Any new business takes some marketing time, too. Word of mouth and referrals don’t start on Day 1, and even that Grand Opening push takes a little while to reach your potential customers. Give yourself time to build local awareness and make sure that your potential customers know there’s a local franchise.
It also takes time for a business to turn a profit. Initial investments and start up costs may stretch you thin if you’re starting your business on the side. Make sure your business is bringing in enough to cover all the daily costs of operations including your salary, and that you have a cushion of cash that will cover your own daily expenses when your business has a slow spell.
Most businesses have times when cash flow is low, and failure to have enough capital to weather those times is one of the main reasons businesses fail.
These factors should help you determine whether it’s possible for you to move into full-time business ownership. Once you’ve met that point, it’s up to you. Would you like to be able to devote more time to your franchise? Are you feeling less committed to your day job? Is it hard to do both and still have time with your family or enough time to sleep?
Then it might be time to take the plunge.
This article was originally published by America’s Best Franchises
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