Franchises are regulated by the Federal Trade Commission, and the law that outlines what a franchisor must reveal was established in 1979. Once a prospective buyer and the franchisor have established a mutual interest, the franchisor will send the Franchise Disclosure Document (FDD.) Prospects are required to send back a receipt of the document, which starts the clock on the 14-day discovery and decision phase. The prospect can only purchase the franchise after the 14 days have passed.

You can see how this document is designed to protect both the buyer and the franchisor. Its structure provides almost complete transparency (more on what information franchisors provide later.) The process prevents a buyer from making a decision without all the information they need. It also protects the franchisor from being accused of misleading a franchisee.

This is different than any other kind of business sale or startup. If you’re starting your own business, you are relying on your own research and estimates (and hoping they’re correct.) If you’re buying an existing business, you’re relying on the seller to provide complete and accurate information. (Spoiler alert: it’s not always complete or accurate.)

But with a franchise, you get full disclosure before you’ve ever signed anything.

Here’s some of what the Franchise Disclosure Document includes:

• A history of the company and information about the executive team. They will be your partners in the business, so you’ll have some background. You can use it to decide whether they have the right experience to make them a fit for you.
• Financial reports for the last three years of the business. You’ll be able to see whether the company has a sound financial position and evaluate data about its growth.
• Whether there is any pending litigation against the company from franchisees or regulators.  
• The cost of ownership. This is presented as a range based on historical data. Licensing, rent, the cost of labor, and other factors can vary widely based on location. But this line item clearly states franchise fees, buildout requirements, and other franchisee costs.
• Earnings claims: About 40% of franchisors include this information, which is also based on historical data. Some present it in quartiles, the top quartile has historically earned, the bottom quartile has averaged this, etc. Some companies present full financials from every franchisee as an addendum. No matter how much information you receive, you’ll want to talk to actual franchisees to verify their earnings and their experience with the company.
• That’s why it’s so valuable to receive a list of all existing franchise locations and complete contact information for the owners (including a list of those who have left the company within the last three years.) You can choose to talk to owners who are in the early phase of ownership or to the more established franchisees. Most busy owners choose to do group calls or Zoom meetings rather than speak to every prospect. But no franchisors are on the calls, so you can ask anything and get the unvarnished truth in return.

You can see why franchise buyers have more confidence than most business buyers. They have access to a proven model of success and a support system that helps them avoid pitfalls and maximize their earnings. The Franchise Disclosure Document also provides enough information to alleviate some of the anxiety of starting a new business. It helps you make a clear-eyed, informed decision about whether this opportunity is right for you. 

Whatthefranchise is a Strategic franchise consulting firm that has helped people for over 30 years to find the best franchise via proprietary assessment tools.

Marshall’s background includes over 41 years of business ownership, sales, marketing, and consulting experience.  His first endeavor as an entrepreneur was as an independent contractor for the southeastern United States, with the Optyl International Eyewear company based in Austria. During his tenure with Optyl, he was awarded the Consultant of the Year for the United States. Marshall parlayed his success with Optyl into a successful partnership of optical retail superstores in Jacksonville. His company also worked as an outside consultant for Vistakon, a Johnson & Johnson company.

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It’s easy to let external factors get in your way. The economy is uncertain. Inflation is rising. Money is tight. I hear it’s very hard to hire good people right now. If we go into a recession, will customers stop buying? All kinds of things that are out of your control make it easy to tell yourself now isn’t the time.

Then there are all the things you’re waiting for. “I’ll start a business when my kids are out of school.” Or when you have a certain amount of savings. Or when you finish a project or your spouse’s career hits a certain point. Business ownership is always a future plan waiting for a specific milestone to happen.

Sometimes, it’s about you. Yes, I’m miserable in my job, but how do I know owning a business will be better? What if I don’t succeed? What if I don’t like doing it? What if I’m not ready for this? What if I’m not good at it? 

It’s natural to have fears and doubts – you wouldn’t be human if you didn’t consider a lot of “what ifs.” 

Here’s the reason I encourage people to consider entrepreneurship: life will always be uncertain. The economy will change, sometimes for the worse. But then it will get better. The business will change. Your circumstances will change. We know this – we just don’t know when and how much they will change. 

There’s never a perfect time to start a business. But there’s never a bad time, either. I know dozens of people who started a business in what turned out to be the worst time they could have chosen. Recessions, financial crises, a pandemic… But they still thrived. What happens in the world, in the economy, in your industry, is unpredictable. But as a business owner, you won’t just be a passenger on stormy seas – you’ll be the captain.

One of my favorite proverbs is, “The best time to plant a tree was 20 years ago; the second-best time is now.”  The same goes for starting a business: the best time was a few years ago. You’d be through the hard part and living the life you dreamed of. If you decide to become an entrepreneur, your future is uncertain. But most people don’t consider that if you don’t decide to become an entrepreneur, your future is also uncertain. You’ll just have less control over it.

Entrepreneur, author, and motivational speaker Jim Rohn said, “If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.”

The life you want is within your reach. If you’re waiting for a sign that it’s the right time, this is it.

Take the Entrepreneur Test Now

Whatthefranchise is a Strategic franchise consulting firm that has helped people for over 30 years to find the best franchise via proprietary assessment tools

Marshall’s background includes over 39 years of business ownership, sales, marketing, and consulting experience..  His first endeavor as an entrepreneur was as an independent contractor for the South-eastern United States with the Optyl International Eyewear company, based in Austria. During his tenure with Optyl, he was awarded the Consultant of the Year for the United States. Marshall parlayed his success with Optyl into a successful partnership of optical retail superstores in Jacksonville. His company also worked as outside consultants with Vistakon, a Johnson & Johnson company.

The post The Perfect Time to Start a Business appeared first on What The Franchise.

We start with why. Why are you interested in being a business owner? If the answer is that your job is making you miserable, or it feels like a dead end, we ask why again. Why are you unhappy with the job, the company, or your role? Why does it feel like you’re not advancing? Is it a question of earnings? Of personal growth? Of being able to take on new challenges? 

I also probe for what they love about their work, or what they used to love doing. It’s important to understand what motivates someone to get up and go to work each  day before we can find a good fit for them. 

Then we ask another important question: why now? Is there something happening in your life right now that made you take a step in this direction? Are you trying to move toward something? Or away from something?  These questions are not easy, and my job is to help a prospective owner figure out what matters most in their life right now. 

Once we’ve established some of their values, I can ask another question: when you imagine owning a business, what do you feel? What will change? The answers might include flexibility to live a lifestyle that makes you happy or allows you to spend more time on what – and who matters.

The answers might include autonomy, the ability to decide when, where, and how much you work. It might include the ability to grow your income based on how much effort you put in. It might include the ability to challenge yourself to develop new skills. 

It’s important for them to imagine how owning a business would be different than what they’re doing now. It sometimes takes several rounds of “why” and “what” to get to the core issue they hope will change with business ownership. 

Finally, I ask about how they want to feel as a business owner. The answer might include pride of ownership, feeling fully engaged, or that they’re making a difference in their community (or the planet.) 

Some people want to own a business because they want to build a legacy, something they can be proud of. They may want to employ their children or leave them something of real value after they’ve retired. They may want to own a business so they can create jobs, build a team, create a meaningful work culture, or mentor employees.

They may talk about connecting with their passion, but in my experience, many business owners don’t expect to feel passionate about running a company unless it’s using a skill they’ve always dreamed about. Most business owners think of their business as a way to finance their passion, whether it’s cooking, travel, making art, or some other fulfilling pastime. The business itself can be anything you can run well that generates income and allows you the time to pursue your interests. That gives us plenty of possibilities to work with

The good news is that there’s a business model for almost any kind of lifestyle and wish list. You can customize your business to meet your needs, whether they’re professional, financial, or personal. Your preferences and level of commitment (whether you want to run the business yourself or manage a team) will determine what kind of business makes the right fit for you. And it starts with asking the right questions.

Whatthefranchise is a Strategic franchise consulting firm that has helped people for over 30 years to find the best franchise via proprietary assessment tools.

Marshall’s background includes over 39 years of business ownership, sales, marketing, and consulting experience..  His first endeavor as an entrepreneur was as an independent contractor for the South-eastern United States with the Optyl International Eyewear company, based in Austria. During his tenure with Optyl, he was awarded the Consultant of the Year for the United States. Marshall parlayed his success with Optyl into a successful partnership of optical retail superstores in Jacksonville. His company also worked as outside consultants with Vistakon, a Johnson & Johnson company.

Whatthefranchise is an affiliate member of the IFPG group which is the largest franchise consulting group globally.

The post The Why, What, and How of Starting a Business appeared first on What The Franchise.

Reddy says there are four ways someone can buy into a franchise. The most common model is the single-unit franchise. There’s a reason most buyers choose this model; the entry cost is relatively low, and many new owners feel more comfortable starting with a single unit until they become confident that they can run the business and meet their goals.

This lower risk model is a great starting place, but its potential income for an owner is limited.  And most single-unit franchises don’t provide enough income for two or more partners. Usually, the single unit franchisee is for a relatively new entrepreneur who wants to replace his traditional job with self-employment income.

At the other end of the risk/reward spectrum is the area license, or master franchise license. This is increasingly rare among established franchisors; usually, you’ll find the model being offered by younger franchisees who are seeking quick growth. The area franchise model usually offers a large territory for development: a large metropolitan area, a few counties, or a whole state or region. The area license holder is charged with finding franchisees and helping them establish their business. Some franchisors may require the area license holder to own at least one unit in the territory to use as a flagship business and training center.

The area license holder splits the franchise fees with the franchisor and collects royalties from the new units. The area license holder must have a plan for developing the territory within a specific timeframe in agreement with the franchisor. This can be a very profitable model, but it requires a broad spectrum of business knowledge on the part of the owner. Most of the success stories in this model include partnerships with diverse expertise.  One partner may handle operations support, one might do marketing, and another handle real estate.  

This model takes experience and expertise, but it’s a very profitable model as long as the franchisees achieve success. The master license owner(s) invest their time in recruiting, vetting, training, and supporting other business owners.

Entrepreneurs who choose this model are by definition less risk-averse than single-unit franchisees, and they may change the dynamics of the territory. Reddy has seen a few cases where a new franchisee wanted to put a toe in the water with a single unit, only to find that a more confident investor has seen their success and purchased a master license. The single unit owner suddenly becomes limited to the single unit whether or not that was their long-term plan.

Some business owners become franchisees after they start their business and achieve success under their own brand. They may come, over time, to see advantages in aligning themselves with a national franchise brand. Two of the most common industries for the conversion model are real estate and hair salons. A moderately successful hairstylist will gain considerable benefit from becoming part of a national brand’s franchise territory.

Conversion fees are generally lower than traditional franchise fees, but the owner will also have to bear the cost of conversion. They may have to invest in technology, bring facilities up to franchise standards, and pay for brand conversion items such as signage. The converted business gains much in brand recognition, national marketing, and systems, so this is an attractive model for an entrepreneur who wants to take their business to the next level.

Finally, the fourth model is the one Reddy recommends for entrepreneurs who are confident they can manage a larger operation and have higher income goals. The multiple unit model has several advantages. Franchisors usually offer a discount on the franchise fees after the first purchase, so the cost of entry for the extra units is lower. The potential for income, however, increases with each unit, and the owner also realizes cost savings by scaling support and marketing services for multiple units.

Because there are several ways to enter and succeed within a franchise model, Reddy recommends entrepreneurs find a consultant who can help them determine what will work best for them. They may have more options and more opportunities than they realize.

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It seems like an odd way to greet professional football players since they’ve played the game since they were kids, but he had their attention.

What he was saying was – let’s not leave anything to chance and rethink everything, no matter how basic. As it turns out, Lombardi was giving some pretty good career advice too. Are you happy with your professional path? Will it lead you to your personal goals? And maybe most importantly, is there enough pain for you to do something about it?

So as we enter a new year, do yourself a favor and do some self-reflecting and forecasting.

We have moments in our lives when we’re hit with adversity. These events, and how we respond to them can change our destiny. While you cannot control every variable, you can influence your fate.

In December of 2021, just 18 days before Christmas, 900 people with Better.com were laid off hearing the news from a 3-minute Zoom meeting. Unfortunately, many of those people were caught flat-footed, without another source of income or plan.

It’s not unheard of. The median tenure of employees working for the same employer is just 4.1 years. Nothing lasts forever. Your last day may or may not be your choice. Other people can make that decision for you. If you find yourself in the same situation as the Better.com employees, you’ve got to act fast. Many will get back on the hamster wheel and start the clock ticking with their next employer, yet others will decide they’ve had enough and start their own business. It all comes down to what you are willing to do to secure your future.

Last year, more than 4.4 million new businesses were created in the U.S., the highest on record. What’s driving this economic boom? The reasons are many but can be summarized as people escaping their pain or seeking happiness in the pursuit of pleasure. Ultimately, it’s the only two factors that cause someone to start a business.

“The secret of success is learning how to use pain and pleasure instead of having pain and pleasure use you. If you do that, you’re in control of your life.” – Tony Robbins

2022 is coming; how do you want to play it?

If you like your job, and things are going well, then good for you! In that case, there isn’t enough “pain” for you to resign and start your own business. However, there may be enough motivation to get involved in a semi-absentee business. That’s the trend franchise matchmaker Marshall Reddy is seeing. “I work with people that have a comfortable life, but they’ve seen enough and amassed enough experience to know that diversifying their income and leaving themselves options is a good thing. They’ve reflected on their professional life and have a plan to work a few more years at their corporate job, and then transition to owning and running their own business. It gives them something to look forward to. By starting up now, they can make a smooth transition when the time is right.”

It all comes down to priorities and risk mitigation. Take a minute to think, channel your inner Vince Lombardi, and map out the future you deserve.

The post YOUR CAREER: BACK TO BASICS appeared first on What The Franchise.

Still, the frustrating thing as an employee working for someone else is that you are trading time for money. And since time is finite, your income is largely capped. There is a limit to what your employer is willing to pay you. When you own a business, your income potential is unlimited.

We all hear about how hard it is to start a business and the owner putting in crazy hours in the beginning. Plus, the failure rate for new businesses is staggeringly high. What If there was a better way to get started on your business ownership path?

Marshall Reddy, a private franchise consultant describes this as the semi-absentee franchise model. “Most of my clients in the last 5 years have no interest in working their fingers to the bone. They’re choosing franchise businesses that are proven (less risky) and allow the owner to put in just 10-20 hours per week.”

While that may sound great, there are some caveats. Starting a business is a grind and it takes some hard work in the beginning and likely more than 20 hours in a week. However, once key management talent is hired and systems are put in place, it is possible for the owner to continue with their career and report to their previous work like they always have.

The franchise manager will handle day-to-day operations, check-in weekly or daily to report performance, and discuss any major decisions. The owner doesn’t have to be on-site for the business to thrive.

There are many concepts where you can be a semi-absentee owner. How much time you spend in the business will depend on your leadership skills, staff, and of course the business model itself. You can find semi-absentee businesses for sale in nearly every industry including business services, health and wellness, beauty, and nearly everything else.

Many of the clients Reddy works with are established executives that understand they want to retire from their jobs soon. Getting started now with a semi-absentee business allows them to get established for a few years, and have an easy transition to their next life with income still coming in.

Marshall says, “In my process in helping people evaluate franchise opportunities, I take them through an exercise where we ‘future cast 3-5 years. I ask them what they want their life to look like. The answers vary from traveling in my RV or moving closer to family. As long as they can be connected via a laptop and cellphone, all those dreams can be a reality.”

Investigating franchise opportunities is as easy as an internet search. However, Reddy encourages someone to work with a franchise consultant that isn’t committed to any one concept. Working with an independent advisor means you get real-world advice. Franchisors are motivated to sell territories, so their idea of being a semi-absentee owner may be different than yours.

There is something better out there for everyone. You just have to take the initiative to look into your options.

The post KEEP YOUR JOB AND OWN A SEMI-ABSENTEE BUSINESS appeared first on What The Franchise.

Thoughts may be swirling in your head and you don’t know where to start. The result is confusion, which leads to indecision and paralysis.

Franchise consultant Marshall Reddy has been an industry insider for 29 years. He works with people every day that know they want to own a business and are considering their options. He has a defined process to help narrow options to just a few, so you can research them extensively.

“It’s true. Franchisors are in business to sell territories. Just the nature of this relationship can be uncomfortable, knowing that everyone you talk to is trying to get in your wallet,” says Reddy.

He works differently. He doesn’t ask for a dime from the people that he consults with. His job is to match you with the right opportunity. When successful, he’s compensated by the franchise concept you chose.

“I love working this way because it puts me on the same side of the table of the people I work with.”

His process starts on a macro-level. Many people he works with are ex-corporate executives. While they may not know at this stage what they want, they definitely know what they don’t want. He calls them the ‘non-negotiables.’

Reddy wants to know what you loved about your last job and your current life and family situation now. Do you want to stop traveling 4 days per week? That narrows the franchise scope some. Are you tired of managing people? If so, that further rules out some franchise concepts. Are you a natural-born salesperson? Or do you prefer your customers to come to you?

Before long, the thousands of franchise opportunities narrow to hundreds. However, his process doesn’t stop there.

He has his clients complete a “Franchise Assessment Profile.” Similar to the DiSC Assessment, it’s a tool designed to help you understand your strengths and weaknesses. We can zero in on a concept and increase your odds of success and happiness as a business owner.

“People work themselves into a corporate career that they just aren’t a great match for all the time. Either the job evolves into one they hate, or it isn’t aligned with their personality type to begin with. The result can be mediocre performance or dreading getting out of bed. People become burned out and bitter. That’s no way to go through life.

The Franchise Assessment profile is our tool that helps you understand yourself. It’s powered by Neurolinguistics programming and an intelligent algorithm that accurately understand how you process information and where you draw your energy from. It’s our shot to finally align you with a career you were meant to have.”

“When we align the right franchise to your wants, needs, and personality, we unlock your true potential that was never fully realized in the corporate world.”

Reddy encourages clients to take as much time as they need to make a decision. “Part of the process is getting life things in order so that you can make a successful choice. Such as:

–Talking with your spouse so they’re on board with your career move
-Make sure you have the financial resources, not only for the initial investment but also for a comfortable cushion
-Clearing any conflicts you might have with your current employer
-Being healthy enough for the upcoming demands
​

With so much to think about consultants like Reddy help bring order and process to a complicated decision. There’s a lot at stake. My life’s work is to match the right people with the right business opportunity. When successful, I know I changed someone’s life. That’s what gets me up in the morning and lights my fire.

The post HOW TO NARROW YOUR FRANCHISE DECISION appeared first on What The Franchise.

If you’ve considered starting or buying a business but don’t want to take on loan debt, there may be another solution: using your own 401(k) or IRA as a source of funding. The ROBS (Rollover as Business Start-Ups), a program that now has a proven track record lasting almost thirty years. The program has helped thousands of entrepreneurs receive funding in a way that is safe, effective and legal. It’s also quick – many receive their funding in as little as 10 business days.

The program was designed in cooperation with the IRS to allow workers to leverage the funds they’ve invested over the years and use them to build, buy, or grow their own business. Here’s how it works.

The process begins with establishing a new corporation using the proper legal structure to support the establishment and operation of the company’s qualified retirement plan.

To avoid early withdrawal penalties and preserve tax-deferred status, financial planners work with you to create a new retirement plan, taking into account your plans for your business. You move your existing funds (or the portion you plan to use for your business) into this new retirement plan.

After the corporate retirement plan is in place, you’ll need to identify an appropriate plan administrator. This administrator creates the new account according to the plan’s design and specifications. The rollover funds can now be invested in the newly formed C Corporation by purchasing stock in the corporation. The stock purchased by the plan is credited to your account based on your investment decisions. You’ll have the capital to start, purchase or infuse funding into your new small business or franchise.

With this program, you become your own banker; you don’t start out with debt from a traditional bank. “If someone has worked and saved for retirement, they have valuable assets that still may not qualify them for traditional business loans,” says Jelena Kuchar, senior consultant with Benetrends, the company that pioneered the Rainmaker program in 1983. “The ROBS program gives the control of funding the business to the owner, so they can make decisions about how they use the money.” Kuchar says that when people withdraw funds directly from a 401(k) or IRA before turning 59½, they get hit with a 10 percent early withdrawal penalty and face a distribution tax. You avoid those with a ROBS.

The ROBS funding allows you to take a salary from the company once your business is formed and eliminates loan payments to a bank, giving you an early advantage in your business cash flow. The lack of debt service means you can significantly shorten your time to profitability and maximize your potential success.

Here are some things you should consider.

You’ll need to operate your business as a C Corporation; no other business structure qualifies for ROBS. So it’s important to consult with your tax advisor to make sure that’s the right fit for your business. You’ll need to make sure you’re meticulous about the filing and corporate legal requirements to avoid extra scrutiny or penalties by the IRS. You’ll also be required to take an active role in the business as an employee. Taking a salary is the only way to draw money from the fund.

You’ll pay some fees to the company that manages your fund, and Roth IRAs don’t qualify for ROBS. Your funds won’t grow as they would in a traditional investment fund; you’ll be using them to grow your business instead. Unlike the stock market, though, this is an investment you can control through your own hard work.

And of course, the funding comes from the money you’ve set aside for retirement. You’ll need to get good advice on your business plan and make sure the numbers make sense for you and your family. If you’re ready to take a risk on yourself, this could be the right plan to start the company you’ve always dreamed of.

The post IS LEVERAGING YOUR 401K TO BUY A BUSINESS A GOOD DECISION? appeared first on What The Franchise.

There are hundreds of options for franchise owners beyond the familiar food and services: pet sitting, candy making, anger rooms, swimming lessons, even crime scene cleanup. Buying a business is a life-changing event, and it should involve lots of conversation between you and your loved ones. But in addition to discussing the “what” of your business, you should also spend time on the “why.”

We start the client conversation with that most important question: why do you think business ownership is the right move for you right now? It’s the key to understanding what owning a business means to you, and what you’re expecting business ownership to be like. And it’s worth having a discussion to understand what your spouse or partner expects as well.

A business coach will work on getting to know your skills and experience, your strengths and weaknesses, and your family situation. We use an assessment designed to get to the essence of your work and leadership profile. Are you more of a coach – someone who loves hiring potential and nurturing talent? Are you a hunter who loves the close, moving from one sale to another and letting others handle details? How strongly do you feel about your business being sustainable or giving back to the community? The idea is to build a profile of how you think and work so he can start to match you to available franchises that would be a good fit.

Our assessment questions are designed to get to what makes work enjoyable and meaningful for you. Understanding your intrinsic motivation is a vital step in finding a good business match. It’s important to understand your drivers. Are you driven by recognition or prestige? Achievement? Solving tough problems? Security? Helping others? Building relationships? Knowing yourself is the key to knowing what business is right for you.

We also want to uncover what you’re working toward, rather than what you’re trying to avoid. One of the big mistakes we see is making long-term decisions to solve short-term pain. Disliking your boss is not a good reason to start your own business.

The information we gain about a client can open their minds to new possibilities. Our client profile allows us to present opportunities that the client wouldn’t have considered on their own. It’s a delicate and tricky conversation; a bit like asking them to try broccoli for the first time. “We only have to have one conversation about this; if you’re not interested, that’s okay. But this business model is a great fit for your profile, even if you might not have thought about it before.”

Aristotle said, “Knowing yourself is the beginning of all wisdom.” Finding a business that is a true fit for a client’s personality changes everything, and it makes the transition much less scary. We had a client whom he met when his insurance company employer was sold. He’d decided not to relocate (for the sixth time) to keep his job. He was an Ivy League MBA and had been in business for many years. He’s the only client we’ve ever had that didn’t ask a key question: How much money can I make?

When we finally asked him why that hadn’t come up in their conversations, the client replied, “It didn’t worry me. I knew that if I found a business that fit me, the money would come.”

That’s exactly right. That’s why we invest our time helping clients look inward before they venture out to start a business.

The post WANT TO OWN A BUSINESS? LOOK INWARD FIRST appeared first on What The Franchise.

-Is this a place I can see myself retiring from?

-Does this organization share my same values?

-What am I not willing to compromise?

-Is this as good as it gets?

-Am I stuck?

As a result, Americans are changing jobs. According to Prudential Financial’s Pulse of the American Worker survey, 1 in 4 workers are preparing to look for opportunities once the pandemic threat has subsided. Maybe this is you.

What’s driving this behavior? Are you running from something? Or chasing a better life? Unfortunately, if you change jobs, you may end up trading one lackluster situation for another. Simply flipping pages on a calendar as your true potential is wasted.

Is there a better way? Maybe it’s time to own your own business.

It is intriguing for sure. Setting your own hours, not answering to your boss’s demands, and not following archaic corporate norms sounds attractive. It gives you the ability to control your own destiny and live a fulfilling life.

Interest is nothing without action. Americans filed paperwork to start 4.3 million businesses last year, a 24 percent increase from the year before. It’s on pace to be even higher when 2021 concludes.

However, it’s not for everyone because it can be scary. We’ve all heard that 90% of startup businesses will fail. That’s a grim statistic for sure, and it will send most employees back to their cubicles.

But there is a bright spot. Enter the world of franchise ownership.

It’s brilliant, because, by the nature of being a franchise, the business model and demand have already been proven. Therefore, success is more common than failure.

If you’re ready to think seriously about your next move, follow these 4 steps:

Decide the time is now

Starting a business begins with being emotionally ready. Everyone has a dream, but only a select few have the drive to take action. There are dreamers and there are do-ers. Ask yourself, how much do you want it?

Having a job is kind of like renting an apartment. It’s a good place to start, but are you ready to step up and buy a home (own a business)? If the answer is yes, be sure to bring your spouse in on your thoughts. Owning a business is very much a team sport.

Get feedback

Of course, you’ll talk to other family and friends but take their opinions cautiously. Don’t let others ambush your dreams just because they don’t have the courage to do it themselves. Value the opinion of others that have already walked down the entrepreneurial path themselves. Remember: The elephant in the room is FEAR. Some people are paralyzed by it, others are motivated.

Get a coach

When you’re researching franchise opportunities, you’ll no doubt do a few internet searches. It’s at this moment, you’ll realize there are over 3500 options. You can go into analyst mode and build spreadsheets to try and sort them out, but why would you? We like the services of an independent franchise consultant. One longtime consultant/coach is Marshall Reddy. He has a proprietary process to help narrow your choices.

It starts with a Franchise Assessment Profile. He’ll help you understand your “Why.” Do you take direction well? How do you process information? Reddy helps you figure it out. Next, he’ll ask you about other drivers. Are there specific skills you want to use? Perhaps you have school-aged children and don’t want to miss any baseball games. Do you have any physical limitations? Perhaps you’re not ready to quit your job and want to be an absentee owner? His 15-page worksheet will prioritize what’s important to you so you can design your own professional destiny.

Based on the sessions with Reddy, he’ll present franchise options that fit your goals and genetic makeup. At that point, it’s up to you to do some additional research and have discovery calls with the franchisors. If you like what you hear, and the franchisor likes you, they may invite you to their corporate location for a discovery day. This is when you’ll meet your potential business partners face to face and learn more.

Look at your finances

It does take some cash to buy into a franchise. Most commonly called a “franchise fee,” it can be just a few thousand dollars to a million dollars or more. In Reddy’s process, you’ll have a conversation about this. For most moderately successful working adults, franchise ownership is well within reach. Special government programs help you unlock the cash you need. It may come from allowing you to access a portion of your 401k tax-free or even an SBA-backed loan. The best risk you can take is on yourself because you can influence the outcome.

So is 2022 the year you change your reality? It could be – IF you have what it takes. It’s not all blue sky and roses and there will be rough days – but they will be yours.

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