Transitioning from the workforce to franchise ownership can be one of the best things that you can do for your career, your finances, your family and your future. However, the best time to make that transition isn’t so clear cut.
For some, it makes sense to leave their day jobs behind and jump right into running the franchise on a full-time basis; for others, it is better to establish their businesses before making such a bold leap and leaving their former professions behind.
So which approach is right for you?
The Advantages Of Quitting Your Job
Should you quit your job to start a business — a franchise business? To find out, you’ll need to weigh the following pros and cons. Let’s start with some of the advantages:
Running a franchise requires a tremendous commitment of time, energy and focus, and without your old job in the way, you can devote more of all three to your new business.
Make Your Own Schedule
As the head of your franchise, you won’t have to answer to anyone when it comes to how you utilize your time. Instead, you will be able to spend your days as you see fit, allowing you to achieve greater work-life balance and eliminate the headaches that come with a traditional job.
Earn Money For Your Business
When you work for someone else, you may take home a paycheck, but it’s your employer who profits off of your efforts.
When you are in business for yourself, on the other hand, all the money you earn as a result of your hard work will go back into your pocket or back into the business, meaning your earning potential is limited only by your drive and determination, not your boss’s discretion, some arbitrary salary scale or a commission formula.
Complete Control Of Your Career
The sooner you leave the 9-5 grind, the sooner you will be able to dictate your professional future. No more worrying about layoffs, dealing with office politics or interacting with that annoying coworker down the hall; your work will be on your terms.
The Disadvantages Of Quitting Your Job
With advantages comes disadvantages, and here are a few worth considering before you quit your job to start a business:
Loss Of Income
Though you can ultimately make a lot of money as a franchise operator, it can take some time for your new franchise to become profitable.
As a result, you may not be able to pay yourself at a salary level that you are used to — at least initially. However, you can budget your living expenses to make the transition easier, and franchises generally reach profitability faster than independent businesses, so you won’t have to make the adjustment for too long.
Feeling The Pressure
You could feel a lot of pressure. When you are the head of your own business, you will need to wear a lot of hats — CEO, marketing executive, human resource professional, accountant and sales leader, just to name a few.
All those hats can weigh heavily on your shoulders, resulting in a lot of stress. You’ll need to learn new skills in order to succeed and, without the security of your full-time job to fall back on, that stress may be too much to bear. To alleviate some of the pressure, you may want to consider finding a business partner to share some of the load.
You probably already know that leaving your job will influence your schedule, your finances and, your stress levels; but you may not have considered the impact it will have on your family. Take the necessary measures to make sure everyone is on board with your decision and is prepared for the changes it will cause.
Failure Is Possible
Not all businesses are successful, in fact, about 75 percent fail, which means the people who started them probably ended up going back into the traditional workforce.
Fortunately, franchises have a much higher success rate than independent businesses. Of course, to tilt the odds of success in your favor, you’ll want to look for a franchise that has a proven franchise operational model, a distinct competitive advantage, a built-in support system and a visionary, hands-on leadership team.
There’s No Time Like The Present To Start Planning Your Future
Whether you want to plunge into franchise ownership or just want to test the waters, we invite you to learn more about joining the Bin There Dump That family today.