An Investment in a Franchise is an Investment in Yourself

“By far, the best investment you can make is in yourself; if you invest in yourself, nobody can take it away from you.”  – Warren Buffett 

I hear it all the time from people who are considering business ownership: “But buying a franchise takes a big investment, right?” The answer is yes, but the financial investment is not the full picture – and might be less costly than you think.

Let’s talk about the investment it takes to start a business by buying a franchise:

The financial investment may be more manageable than you think. Eleven percent of franchises require less than $50,000 in capital. That’s the cost of a new SUV. 27 percent require less than $100,000. And more than half (55 percent) require less than $250,000. It’s a significant sum, but perhaps not even your largest personal investment.

You also have options for finding the funds. You might not even need to apply for a business loan; you can consider taking out a second mortgage, a home equity line of credit, use your life insurance policy or credit cards, or leverage your 401K.

The time investment may feel daunting, but you’re working on your exit strategy from corporate life. The best time to start a business or purchase a franchise is while you have a job. You don’t have to worry as much about your income or making business decisions that might not work: your corporate income will help cushion you until you become profitable. Yes, you’ll be working harder than when you were strictly 9–5, but the extra hours you put in will help build your off-ramp. What business owners know is that they get most of the benefit from your hard work, unlike salaried employees. You’re working harder, but you’re also building something that will generate wealth over time.

The emotional investment will build confidence and a sense of achievement. No doubt you care deeply about being good at what you do, and owning a business intensifies those feelings. Gradually, risk aversion, self-doubt, and fear give way to pride, self-respect, and the satisfaction of knowing you’re creating jobs and contributing to your community. It might be a roller coaster ride, but you know you’re in charge of your own success, and you have a system and the support of a corporation with a track record of success. Your mistakes are your own, but they help you improve. The difference is that your triumphs are yours as well, and you can enjoy them all the more because you get the full benefit.

Here’s what I’ve observed over the years: if you change nothing, nothing changes. What felt safe a few years ago is no longer the safest option. Education, performance, or experience don’t layoff-proof you anymore.

To make a good decision about your future, you’ll have to compare the cost of investing in a franchise to the cost of remaining stuck. Almost 70 percent of people who choose to buy a franchise do it to improve their quality of life.

If you don’t take any steps toward your dream of becoming an entrepreneur, you’ll be sitting in the same place you are now when the calendar flips to next year. You will never know for certain where you might be if you had taken the first steps a few years ago.

If you think you’re worth the investment, start by taking the franchise assessment. There’s no obligation to go any further, but you’ll be able to consider another option for taking charge of your own life and earning power.