Do you want to know one of the statements I hear most often as a franchise consultant?
It’s, “Pete, I want to own my own business, but I just can’t walk away from my salary.”
Boy do I hear that. As somebody who went cold turkey on corporate income and perks, I know exactly how it feels to mull the decision of giving up a lucrative bird in the hand (no matter how much you may or may not hate that job).
Whether you are sporting the so-called “golden handcuffs” of significant delayed compensation, unable to fathom giving up your current income stream, or just thinking multiple economic moves ahead, you should know getting into franchising doesn’t have to be an all-or-nothing endeavor.
The fact is, conditions are ripe right now to start a franchise as the ultimate “side hustle” to your corporate position. How so? Let’s look at 6 main ways:
- At this writing, unemployment remains extremely low—low enough that everybody who wants a job likely has one. As long as that’s the case, the skills and experience you bring to your corporate position are earning you top dollar. But how long will it last? Indefinitely? That’s unlikely. We don’t call it an economic “cycle” for nothing, and ours is overdue for a drop by almost any gauge. These days when you hold all the cards are the perfect time to explore your options for alternate streams of income.
- Every year, we’re living more in a gig-oriented economy. And because of that even the oldest and stodgiest corporations are having to embrace staffers who won’t give up their side hustles. The door is open right now for people who want to start new businesses in ways it’s never been open before. I think back to just a decade ago when I decided to leave my corporate job—the idea of me or anyone else in the executive group starting a side business at that time was, well, unthinkable.
- Traditional pensions are going the way of the dinosaurs. In 1998, 59% of Fortune 500 companies offered traditional defined-benefit pension plans. By 2019, that number was down to 14%. If you’ve secured a job with a substantial income, the logical next step is to consider how you’re going to replace that income in retirement. Franchising is one of the few entrepreneurial paths that can be initiated and brought to profitability without requiring a full-time (and then some) commitment. In the long-term, a well-run franchise investment can replace your corporate income.
- Franchisors see you and want your partnership. There was a time when becoming a franchisee meant rolling up your sleeves and doing the day-to-day work, but the past decade has seen many corporations recognize that they can tap the resources and leadership skills of outstanding potential partners by designing programs specifically for executives who actively hold jobs. These “executive” or “semi-absentee” franchising models typically require 10-20 hours each week of attention from the franchisee. Many of those can be accomplished during your commute, or on your lunch hour, or by spending a single evening each week working on the business. The rest of the direct engagement in the business is done by an everyday, on-site manager.
- Franchise investment is scalable. If you’re in the corporate world, you know this is key. How do you grow your company and grow your profits? Many franchises have built-in programs that allow successful executive franchisees to expand into new markets or territories. If you want to build something big—big enough to replace a significant six-figure salary, for example—franchising offers a number of ways to make it happen.
- Owning your own business is the ultimate way to eliminate the traditional vulnerabilities of corporate employment. Over 50? That’s a vulnerability. Over half of executives aged 50 and over are pushed into retirement before they’re ready. At the top of the pay scale? Another vulnerability. Overqualified? Yet another. I can tell you from both personal experience and from working closely with highly qualified investors over the past decade, that when economic trouble is brewing, top-tier, highly-compensated employees are often the first to find themselves heading towards the exits.
If you’re looking to create supplemental income, accumulate wealth, build a bridge to retirement, or simply reduce your dependence on your corporate position, franchising may be the solution you seek.
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Got questions? Good! Contact me at pgilfillan@hireyourself.com (email), 630-904-7900 (call), 630-345-4400 (text), or use the following link: https://go.hireyourself.com/meetings/pgilfillan to schedule a quick consultation call and learn about my complimentary service that helps potential investors explore and better understand franchise opportunities.
Pete Gilfillan is a leading franchise consultant, entrepreneur, and author of the best-selling book HIRE YOURSELF: Control Your Own Destiny through Franchise Ownership.