Category: Blog

The majority of individuals who start a business through Franchising are coming from Corporate America where they have worked for multiple bosses and broad structures that dictate their positions.  People who start a franchise typically are looking for freedom that offers them the ability to make their own decisions, work with whom they wish, and have the ability to make as much money as one desires. That doesn’t mean that leaving a Corporate America doesn’t come without risk and has a place for everyone that has dreamed of business ownership. I’v mentioned a few below for your review.

WORKPLACE INDEPENDENCE

Corporate jobs are not known for their independent structure and employee autonomy. Even if you’re a particularly skilled employee, there’s a good chance you’ve got to answer to somebody about your work in a corporate environment. When many people leave corporate jobs, they do it to find a bit more freedom, flexibility, and independence in their work. Starting a franchise can give people who still want and need to work the ability to control growth and work without the strict corporate system in place above them.  Individuals find themselves working with a franchise team and making decisions that have a positive effect. For many people, simply running the show instead of answering to somebody higher up is a big relief.

STARTUP COSTS

Building a franchise can be exciting, especially for people leaving the corporate world and running their own company for the first time. One of the biggest challenges that many people face right away is the startup costs that often come with a franchise. If you’ve saved money, have investors, or can take out a loan, startup costs may not be a big deal. For many people, though, startup costs can be the first negative when it comes to building a franchise.  It’s best to evaluate all options when it comes to being able to afford a franchise and come to a conclusion on what you are comfortable with.

POTENTIAL FINANCIAL FREEDOM

1. When you start a franchise, the sky really is the limit in terms of growth. If your first location is successful, then you can expand In fact, this is what many franchise owners who do well and enjoy the franchise experience do.

That could mean financial freedom for you and a completely different schedule than you’re used to. Depending on your role in the business and the type of franchise you’re running, you may be able to work limited hours in your initial location, and simply run it from the financial side. That’s what many people who are looking to get into franchise ownership are aiming for down the road.

POTENTIAL MONEY PROBLEMS

Unlike working at a corporate job, starting a franchise requires you to spend money to build a business infrastructure. From buying into the franchise to paying rent and employees, the financial costs will be your own for the first time. You also won’t get a steady paycheck when you start a franchise. You may be able to make more in the long run, but for some people, the fact that they won’t be getting steady pay makes franchising difficult or impossible. Before you take on a franchise, make sure you have a solid financial plan to see yourself through the early stages of ownership. Speak with franchise advisors to get a complete view of what the financial commitment would look like.  As well, look at all the options that one may have to capture capital to invest in a business.

EVERYTHING YOU NEED

Starting a franchise can be incredibly exciting and rewarding, but leaving your corporate job can be a scary proposition. The Franchise industry is vast and robust and for many people looking into franchise ownership, it can be very confusing. Just take the time to make sure buying a franchise is right for you before you make the leap. It’s important that you utilize others to help you work through the maze of information, so you can bring clarity to whether it makes sense to join a Franchise or not.  Companies like Joshco Partners act as mentors to those that are considering Franchise ownership, and most services are free to the individual looking.  Take advantage! For more information about the pluses and minuses of Franchise ownership, contact Joshco Partners today!

Research released by economics professor David Neumark at the University of California, Irvine noted that workers over 40 are only about half as likely, or less, to get a job offer than younger workers if employers know their age.

When managers could determine an applicant’s age group, those over 40 were between 46% and 65% less likely to get a job offer than those under 40.

This is by no means the first study to show age discrimination. Previous research has also shown that managers show bias, unconscious or otherwise, against older workers.

A lot of workers over 50 are looking for opportunities to continue working and being productive, separate research from the progressive Economic Policy Institute, a labor policy think tank, concluded. The share of people working outside of Corporate America who were ages 55 to 64 increased to 22.9% in 2017 from 18.8% in 2005. For people aged 65 and older, the figure rose to 14.1% from 8.5%.

For some older people, independent contracting and/or Franchise ownership are attractive ways to extend ones working relationship within society and to  earn income after they have left the full-time workforce. The difference being that Franchise companies participate in the success of individuals looking to build a future for themselves versus on your own as an independent contractor.

Meanwhile, data from a recent Gallup nationally representative survey program found that formal employment rates plunge once people enter their 50s, but self-employment rates skyrocket. That’s based on surveys with 61,000 people conducted between May 2018 and March 2019 as part of the Gallup Education Consumer Pulse Survey. About two-thirds of those surveyed were over 50.

About a quarter of those still working age 55 to 59 are self-employed, according to a separate analysis conducted by researchers Katharine Abraham, an economics professor at the University of Maryland, and Brad Hershbein and Susan Houseman at the W.E. Upjohn Institute for Employment Research.

“Roughly one-quarter of those self employed age 50 and older work for a former employer,” they added. This raises the issue that they have been shuffled out of the door as a result of their age — or simply to get them off the company health plan before they start costing too much money. Among those over 50 working as “independent contractors,” most told Gallup they were doing it mainly because they need the money.

Being self-employed can go both ways, experts agree. Most of those who own their own businesses like being their own boss, the researchers said, and many who work as independent contractors prefer it to full-time employment, especially because of the flexibility it may give them

What you can do now.

Work with a good advisor who can identify opportunities, you will find that you have some significant bargaining power at this time. Joshco Partners has decades of experience in franchising from both franchisor and franchisees sides of the business. If you see this time of uncertainty as a time to seize the opportunity to own your own business and you want expert guidance, contact us today to get started.

The dream of business ownership may seem unobtainable during a time when so many businesses are struggling or closing altogether. But, when the going gets tough, the tough get going. With these tough times, it feels like the entire world has changed. Change offers opportunities, and it’s a great idea to position yourself to take advantage of them. Certainly, other people who share your interest in owning a franchise business have continued to move forward. According to Franchising.com, Google search trends show that, “[a]fter experiencing a sharp dip in early and mid-March, interest spiked again near the end of the month and has continued to rise in early April.” Embrace your entrepreneurial spirit and move towards achieving your dream of business ownership.

The Gift of Time

When work is busy, it can feel like there aren’t enough hours in the day to get everything done, particularly when it’s researching your dream of business ownership. With orders to shelter in place, we are gaining hours in the day just from skipping the daily commute to and from home. Use that time wisely by beginning to do the diligence it takes to make an informed decision about franchise business ownership. Here are three things you can do:

• Talk to an advisor: an experienced professional who knows the franchise business, preferably from both sides of the equation. The time from the initial consultation to franchise business ownership can take three to five months. Getting started with this critical relationship is a great first step that can line you up to be going into business just when the market is rolling again.
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• Do some research: The franchise world is incredibly varied. There are thousands of franchises across a wide array of industries. Some franchises are better suited to your situation, strengths and preferences than others. In this period of uncertainty, there are franchise businesses that offer better prospects for surviving and thriving as we pass through the pandemic and market challenges. Now, more than ever, it’s important to think and act strategically.
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• Get your ducks lined up: Buying a franchise business takes effort. You need to make sure your family is on board for the change. You need to have your finances organized and ready to present as part of the purchase process. And, while good franchise businesses provide training and support for new franchisees, you should make your own business plan, which will be something you will be required to furnish if you are financing the purchase.

Funding Options Have Never Been Better

The economic stimulus efforts by the federal and state governments, offer multiple aspects that bode well for the prospective franchisee. First, under the federal CARES act, there has been a significant relaxing of the rules for leveraging retirement funds, which means qualifying people can either withdraw funds without penalty or take a significant loan on their 401(k). Second, SBA loans are at their lowest interest rate levels in recent history. Between these two attractive resources, the ability to finance the purchase of a franchise business has never been cheaper.

Franchisor Flexibility

Given the state of the economy, with daily news about businesses shutting down and people losing their jobs, franchisors are justifiably concerned about their prospects. While they won’t publish new terms or relent to any and all demands, they will be open to counter-proposals that will work to the franchisee’s advantage. It’s not necessarily obvious what to ask for and what possibilities to explore, but if you work with a good advisor who can identify opportunities for negotiation, you will find that you have some significant bargaining power at this time.

Joshco Partners has decades of experience in franchising from both franchisor and franchisees sides of the business. If you see this time of uncertainty as a time to seize the opportunity to own your own business and you want expert guidance, contact us today to get started.

The majority of wealthy people in America are business owners, not employees. While many people want to own their own business, most never do; and, studies have shown that the primary reason is the fear of failure. Franchising allows aspiring business owners to bypass the major challenges of a startup and choose an established business with a developed system and strategy.

Business ownership and its process can be complex, confusing, and there are pitfalls to avoid. Instead of trying to do it alone, consider working with an advisor. From the start to the finish, an advisor works with you to guide you towards the best possible outcome. Here are some of the questions that an advisor can help you answer.

1. Where Do I Begin?

You could go it alone and try Google, but a basic search will pull up mountains of information, much of which is contradictory. You’ll find paid advertising, top 10 lists, recommendations for dozens of books, and that’s just what will pop up on the first page of your search. How can you get your questions answered when you aren’t even sure what questions to ask? An advisor with an in depth understanding of franchises will ask you questions instead. By exploring your interests, and providing insight into the franchise industry, an advisor can get your started on the right path.

2. Is a Franchise Business Right for Me?

When we aren’t satisfied with our current work situation, we dream about alternatives. Reality can be very different. Before making a huge leap into the unknown, you need to ask yourself if you really are cut out for owning a franchise business. Self-reflection can only get you so far. A franchise business takes a combination of entrepreneurial spirit and ability to toe the party line. Is this balancing act right for you? The answer is maybe. An advisor can help you figure out what your goals are in owning a franchise business, provide the real story on franchise ownership and help you to figure out if a franchise is in your future.

3. What Type of Franchise Do I want?

According to Franchising.com, there are over 3,000 different franchises to choose from internationally. Food establishments, gas stations, gyms, weight loss centers, accounting, bars, IT services… the range of businesses that have a franchise opportunity is enormous. You want to pick a business in which you can excel. A good advisor will take the time to get to know you and, in that process, help you identify your strengths and passions. Instead of guessing and hoping for the best, your advisor can guide you through the array of options to find a good fit.

4. How Do I Know if I’m Picking the Right Franchise?

Once you’ve settled on the types of franchises that suit your passions and strengths, you need to pick from the enormous list of franchises out there. There are so many additional factors that go in to selecting a franchise. You want to go into business with a reputable company that takes care of its franchisees. You want a franchise that fits your specific needs like location, income, buy-in price, and many other variables that are unique to your situation. Working with an advisor who knows the industry can narrow down your choices to make sure you aren’t wasting time pursuing a franchise that doesn’t meet your needs.

5. How Do I Negotiate A Franchise Agreement?

You are ready to take the plunge. You need to figure out who to talk to and what to say. An advisor with industry knowledge and contacts can make that critical introduction to get you off on the right foot. As you proceed forward with the process of buying into a franchise, an advisor can guide you on what terms you can and should negotiate to your benefit. The franchise agreement is generally a long and complex document. You will have questions, and your advisor can walk you through the terms so that you understand what you are getting into. When it comes time to sign, you will be able to do so with confidence.

At Joshco, we have decades of experience with the franchise industry from both sides of the fence – franchisor and franchisee. We know what questions to ask to get to the heart of the matter, and we work with our clients to make sure that they go into the franchise business with confidence that they have made the right choice. Are you interested in owning a franchise business? Contact us today for a consultation.

The days of staying with the same employer in corporate America for your entire career are over. In the modern workplace, job security just doesn’t exist anymore. According to the Bureau of Labor Statistics, as of 2018, the median years of tenure with current employer for employed wage and salary workers aged 45 to 54 is 7.6. Corporate employees who reach a certain age find that their career is either stagnating or at risk. A few key factors impede a long-term successful career for those who choose to stay in corporate America.

Ageism Pure and Simple

The truth is that the older an employee gets the more age can count against him. Corporate America values youth and discounts seniority and experience. A recent study on ageism in the workplace found that 21% of the respondents experienced age-related discrimination. While the Federal Age Discrimination in Employment Act and state law equivalents are supposed to provide employees protections against discrimination, it is often a “second class” protection. In fact, a recent Fast Company article noted that the majority of employers don’t provide employee training around ageism. This means that older employees are at risk for mistreatment or termination even though it is illegal. 

What’s more, changing jobs to another corporate position won’t necessarily solve the problem. Another study discussed in Market Watch noted that “Workers over 40 are only about half as likely, or less, to get a job offer than younger workers if employers know their age.” In other words, ageism is alive and well in the hiring market.

The Cost of Seniority

Employees who have been around longer cost the company more. Regular raises and promotions mean that they earn more than the entry-level employees. There’s little doubt that experience is a valuable asset, but it may not be as valuable as it costs when two junior employees can do the same or more work for less than the cost of a senior. This fact makes senior employees less attractive both in their current employment and when looking to make a lateral transition. When corporations look to trim the fat, one of the first places they look is their workforce. If they decide to go for layoffs, the more an employee costs in terms of salary and benefits, the bigger the target on his back. 

Up or Out

Not everyone can make it to the C-Suite. This reality is a matter of simple math. As employees rise through the ranks, the number of positions lessen, becoming more competitive and subjective. Anyone with an interest in continued growth and experience is going up against their fellow employees as well as outsiders for coveted promotions. It is a catch-22: employees are expected to show improvement and development, but there are only so many positions available. At some point, it’s time to look at the writing on the wall and recognize that, if you aren’t getting promoted, you are at risk for termination. 

So what can older employees do? Rather than stick with corporate America, take control of your career. Use the knowledge, skills and experience you’ve acquired over the years and apply it to your own enterprise. If starting from scratch doesn’t appeal, investing in a successful franchise can be the right transition into being a business owner. A good, professional mentor can guide you towards the right fit for your needs, make the introductions and facilitate a smooth transition into this opportunity. 

At Joschco Partners, we work with senior employees looking for something better. Contact us to discuss your options.