“Where do you see yourself in five years?” As you get further along in your career, that question becomes harder and harder to answer.
People may not know the answer, because often we become “stuck” in our current career paths. And it’s just hard to envision what else you could possibly do? On the subject of feeling stuck (or worse!) in your current job – here’s a fascinating read from Inc Magazine on the top 5 reasons people are giving for quitting their jobs – and it’s not pay!
One way people have found success in their “second” careers is through buying an existing business or through buying a franchise. The beauty of a franchise is that you don’t have to have any experience at all in the industry that the business is in – in fact they prefer you don’t! (With the exception of restaurants, which no one should consider without a background in restaurant management).
Buying an Existing Business
For some people, the idea of embarking on a new career by purchasing an existing business is appealing. For one thing – there’s an existing customer base, there is some sort of track record – and hopefully, 3 years of P and L’s and tax returns to prove it. In other words, there are existing records to help make your decision as to the “value” of the business.
The downside, though, is that it’s very very hard to truly vet what a business is really worth. And the seller always thinks it’s worth more than it really is! It’s hard to know if you may inheriting problems that weren’t disclosed during the negotiations. If the business is so great – why are they selling? EVERYONE says they want to retire. Another issue is that in any given city there are maybe a very small handful of businesses that are in great shape that are for sale. So very little selection.
I frequently talk to people looking for an existing business and ask them how long they have been looking – and the answer is along the lines of “2 years.” It is hard to find a GOOD existing business that is in an industry you’re interested in, where the seller has a good reason for selling (i.e., the business isn’t going down the tubes). AND, one in which the seller has reasonable expectations as to its valuation.
FYI…statistics show that only 18% of all businesses listed in the under $1 million range ever sell…and the reason is mostly that sellers DON’T have reasonable expectations …and their expectations are so unrealistic a deal never gets done. So what that means is that 80% of what you are looking at on the market is overpriced.
Owning a Franchise
One way to think about starting your own business via franchising is to ask yourself – when you buy a house, you can find one that is ready to move in or you can put in some sweat equity into a fixer upper. This is a little the same…You won’t get the existing cash flow right away with a new franchise, but when you look at getting the return on your investment, you have far more upside potential. Not to mention, we have a multitude of industries available in your market – so you have far greater selection and a higher likelihood of finding something that you can feel passionate about.
Franchising provides you the opportunity to run the show. By taking your years of prior work experience, paired with the expertise, resources, and support of an existing franchise, you have the opportunity to explore the benefits and empowering challenges that come with running your own business – but with the support of a corporate team that’s been there and done that. Not to mention fellow franchisees who want to see you succeed.
Franchises also know what works to get customers through your doors: It is in the franchisor’s best interest to drive traffic to your business, and part of your franchising fees go towards sophisticated marketing efforts and brand development as well as your launch. You’re also provided with a set of best practices, access to and encouragement to continually connect with fellow franchisees, not to mention given guidance on location, hiring, and legal matters, and basically everything else that can be lumped into complete and ongoing training and support.
Considering a Career Change
If you’re considering a career change, it is important to weigh all of your options while also asking yourself, “How will this change help me achieve my personal and professional goals?” As a second-career person myself, I can personally attest to the life-changing effects that come when you take the plunge into a new career.
If you’re looking to make a change and franchising sounds like something you’re curious about, send us an email to info@yourfranchiseiswaiting.com and we’ll be happy to schedule an introductory call.
Thinking of investing in a business? Then take our free online business assessment here to see what kind of business models are right for you! The results may surprise you.