Owning a Franchise as a Second Career
What would you ask potential franchisees to motivate them to join your brand?
By Jeff Bevis, CFE
It has been said that 40 is the new 30, but many are finding that 60 is the new 50 as people retire or are downsized from their careers well before they are ready to spend their days on the golf course or take bus trips to casinos. It isn’t just retirees, however, who are looking for a change of pace. TV shows such as “Shark Tank” are evidence that the entrepreneurial spirit is alive and well, but not everyone has a new idea or wants to start from scratch. For those eager to be engaged in a business and be their own boss, franchising offers entrepreneurs or semi-retired business people the opportunity and freedom to do just that within a safe, successful structure. These are business people with a range of skills and, most importantly, the work ethic to succeed and ability to recognize the value franchising offers. While they may have already enjoyed a successful career, purchasing a franchise allows these experienced professionals to do something they love, something that motivates them every day. Especially after a long career in a larger corporate structure, the franchise model frees them to pursue their entrepreneurial spirit with the safety net of a proven business model. In fact, the encore career may be even more successful than the first. Owning a franchise also offers something a career does not – a legacy. The success rates, future salability and wealth building available through franchising make this business format the choice for thousands of Americans. The facts are compelling. Franchising works, and it works well.
A Career with a Purpose
As recounted in his biography, Steve Jobs was recruiting Pepsi executive John Sculley to join Apple when he asked, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” Older Americans and many younger entrepreneurs are asking themselves that same question. And while they don’t plan to or need to change the world, they are looking for careers that provide meaningful service. Because of this, opportunities related to education, nonprofits and health care are attracting prospective franchise owners who see how these businesses provide a service not only to their clients but to the community as a whole. In some cases, the desire to serve and the forces of market entrepreneurism come together to offer a unique business opportunity. For example, non-medical, in-home care is expected to be a $72 billion market in the next few decades. Not surprisingly, the senior age population is often among the best customers for new services while older Americans not quite yet at retirement age are among the fastest-growing groups of new franchise owners. They recognize the services they and their fellow baby boomers will need in the coming years.
Structure for Success
A franchise provides new owners with the structure and road map for success. Potential buyers provide the leadership skills and work ethic to excel within this proven system. They recognize the value a franchisor provides with a brand name, service standards, training, support and established accounting, inventory, payroll and other business systems for the franchise owner to utilize. For a franchisor, demonstrating the value of that support is essential. It should be clear to the potential owner how the franchise system simplifies administration by providing proven shared business processes such as recruiting, sales management, payroll processing and varying aspects of financial management. While franchising might not have the same level of intensity as their first career, another significant group of potential franchise owners are military veterans. With discipline and leadership already in place, they often make great owners as they look to transition into civilian life. They have proven ability to succeed within a system. They understand the value of working within brand guidelines and have the drive and determination to make the most of opportunities and resources. Whether the potential franchisee is a semi-retired business leader, youthful entrepreneur or a recently retired military veteran, it is essential he be able to connect with employees and customers on a personal level. While an established franchisee can work behind the scenes after growing the business over time, a new owner needs to be present as the location grows and becomes established in the territory.
Sharing the Franchise Story
Pressed for time and eager to start their second career, potential owners are turning to the web to narrow their search. And while conference calls and in-person meetings will come later, it is essential that enough information is available online to determine if your opportunity is a match for their financial and career interests. Franchising works best when the right people, not just those who are financially qualified, are selected. Steve Jobs enticed Sculley to leave Pepsi with a simple but powerful question. What question would you ask potential franchisees to motivate them to join your brand?
Jeff Bevis, CFE, is president and CEO of FirstLight HomeCare. Find him at fransocial.franchise.org.