Opening and operating a business takes hard work, owning a franchise is no exception. But the benefits of having your own business and possibility that your income will continue to grow while the amount you work remains the same or is actually reduced, is hard to beat.
The key is to actually get to that point – get the franchise up and running so that you can hire great management to run it for you. Or find a great one that you trust to train your management team from the beginning. It’s my opinion that you should still be involved at the start, but there are brands that you can choose to have that role be part-time, and hours that coordinate with your “day job”. The benefits might be delayed, but as with most successful semi-passive income ventures, they can be long-lasting and worth it. Who can argue with the idea of having an additional income stream and eventual passive income?
For me, semi-passive or passive income is income that is not proportional to the time you physically put into acquiring it – “time in” does not equal “money out.” Put simply, you eventually get more than you put in. But it’s not like plucking money from a tree. It takes time and hard work to get to that point. And a different sort of diligence and research from the beginning, after all, it’s not all about you and your skill set, anymore.
The first step is choosing a business model. There are several industries that Semi-Passive franchise business models are PROVEN to start semi passive.
- Some Restaurants, Food Trucks, Snack Chains
- Child learning centers or After School Program
- Haircare and Beauty
- Tax preparation
- Medical clinics / MedSpas
- Postage and Packaging
- And many more
Investing in a franchise always involves some upfront costs. These costs are usually higher when the owner isn’t going to be the face of the business. The company gives you the right to sell and advertise using their trademarks and products, and you agree to give them the necessary fees (upfront and ongoing) and follow their guidelines.
Like anything we choose in life, franchising has its pros and cons.
Pros include the fact that with a franchise, you can hit the ground running – everything has been done before, including research and development, so the chances of business success can be higher with a franchise. And people trust brands they are familiar with, which makes marketing and promoting the business much easier. Nearly all franchisors provide training for their business model, as well as the opportunity to talk to any franchise owner for advice.
On the flip side, franchisees have agreed to do most things the way the franchisor dictates. In some cases, the initial investment into a franchise can be more expensive than starting a business from scratch. Research is key. You’re paying to avoid start up mistakes, too.
Most franchisors require franchisees to pay an ongoing royalty fee. Operating a franchise takes time, energy, and effort – just like any other business – to succeed, and franchise fees are a decent amount of income up front without any promise of return. Please remember, though this is true of nearly any income-generating venture.
If owning your own business has been at the back of your mind for a while, investing in a franchise might be a great way to get started. Semi-Passive income long term is worth working for short term.