Have you dreamed of starting your own business, but found
yourself hindered by the vast of amount of information to consider? For many,
the allure of franchising is the structure it provides, which alleviates much
of this guesswork and early mistakes. If you are considering franchising as a
means to business ownership, it is important to understand the differences
between the "owner-operator" and "semi-absentee" business
models. Once you understand the distinctions, you can evaluate your own
personal goals and strengths to determine the best fit for you.
Owner-Operator
Model
Most franchisors require their franchisees to commit to
the owner-operator model. In other words, they expect owners to work full time,
40 hours or more initially, to oversee the day-to-day operations, plus handle
the back-end aspects of maintaining and growing the business. While the
franchisee enjoys the freedom of working for themselves, he/she must personally
assume a wide range of responsibilities.
The owner-operator model is the better option for those
who want to be directly involved with the businesses they own. It allows small
business owners to save the time and money it would cost to hire, train, and
supervise someone else to manage the business. If you look into buying a franchise,
you will have many more options if you choose this model.
Semi-Absentee
Model
For those who would like to own a business, but do not
wish to (or cannot due to a day job or existing business) be heavily involved
in the daily operations, the semi-absentee model is the better option. While
there are fewer semi-absentee franchises, they are becoming more prevalent. The
nature of some businesses allows for owners to be much less involved, or
"semi-absent," from the day-to-day functions of the franchise,
typically devoting 10-20 hours per week managing the manager, marketing the
business, etc. Because this seems like a much smaller time commitment, people
are buying franchises while maintaining their full time careers. However, it is
important to note that establishing a business requires a larger commitment
initially.
If you would like to maintain your current full-time job,
along with any health or retirement benefits you currently enjoy, you might
want to consider this option. A significant number of franchisees keep their
day jobs, while starting a semi-absentee business to develop an additional
revenue stream and a hedge against potential layoffs or corporate restructuring.
You can achieve your dream of owning your own business, without giving up the
status, salary or relative security of your current position.
Before committing to the role of semi-absentee franchisee,
business owners must assess how comfortable they are with handing the reins to
their company over to someone else. If you choose to do so, you will need to
hire carefully and commit to the training and staff development necessary to
ensure your success. People who are used to being in a position of authority or
who enjoy keeping their thumb on the pulse of the business would be better
suited for the owner-operator model. However, if you can manage others
effectively, semi-absentee ownership might be a means to own a business and
grow it into a multi-unit enterprise.
Would you like to know
more about this type of model and the opportunities available?
Join us, Friday, November 3rd, for a SEMI-ABSENTEE
Franchise Ownership Options Lunch ‘n Learn in Sterling Heights. To learn more
and register, go to www.michiganfranchiseforun.com/local.html.
While both models are viable routes to business ownership,
deciding which industry, business model, and franchise to invest in is likely
to be an overwhelming proposition. An experienced franchise consultant
considers unique personalities, values, and leadership styles, as well as
current personal and professional commitments, when matching prospective
business owners to the best franchise opportunities. If ownership and
independence is really important to you, don’t wait to get the education and
help you need to begin your journey to entrepreneurship. We’ll help you get
started NOW!
