So, it isn’t exactly breaking news that baby boomers took a pretty big financial hit in recent years. Gone are the days when a 401K and a couple of other stock investments were more than enough to get you through your golden years. (I know; laughable, right!?)
As baby boomers, you must consider that your money has to last a lot longer – because folks are living longer these days – and in an economy that is still fairly unstable and inflated. Everybody 55 and up is addressing these challenges a bit differently, but one growing trend is that of baby boomer franchisees.
For some of you, it could be an added cushion of support for your current investments.
For others, it may be a preferred alternative to delaying retirement.
And yet, for others, it may just be that you’re not quite ready to sit still and want to build something to leave to your kids!
Whatever the specifics, you’re tossing around the idea of purchasing a franchise and you’re looking for where to start.
Well, look no further. We’ve got a breakdown for you on how to begin your research, evaluating the risks and when to seek professional help.
Why Baby Boomers Make Such Good Franchise Owners
First of all, let’s consider the characteristics required to run a successful franchise business:
• Work ethic
• People skills
Quite honestly the list could go on, but this is a pretty general interpretation of what it takes to run a franchise. But take a look at those traits….some of them aren’t exactly faculties you might expect to find in an inexperienced recent college graduate.
Humility in a 25 year old? Ha. Not likely.
These are the skills of an accomplished worker.
So, take an inventory of your skillset to determine if you’re really ready for a franchise investment. After all, if it’s not a good fit, it will turn into more of a disappointment than a lucrative business venture. To start, download ‘The 10 Secrets to Franchise Success: What to Know Before You Buy.’
Weighing the Risks
Before going any further, you’ve also got to be financially realistic. While the franchise industry does offer some level of protection over a typical start-up business, it is still not without its risk. After all, nothing in life – as you have learned by now – is guaranteed.
So, you need to be honest about your current financial situation. If you’re 62 and your nest egg took a pretty big punch in 08′ then consider looking at smaller franchise opportunities or even other investment options entirely. Buying a franchise should never be used as a desperate last resort, especially considering that most franchisees don’t see any profit for at least the first year. Make sure that your current investments and savings can comfortably support you during that start-up phase.
When weighing your risks, you’ll also want to be sure and do your due diligence before settling on which franchise to invest in. Some of today’s franchise opportunities are sound investments while others are not! Doing thorough research really can make a difference.
If you feel like you’ve got the skill-set and financial foundation to really consider buying a franchise, then congrats! My best suggestion is to seek professional guidance now. Not just to negotiate the fine details of the deal and get tax advice, but to make sure that you really understand what you are investing in. Your level of success depends entirely on you and your due diligence. Check in with your CPA to really evaluate your buying power. Consult with a business coach or mentor on how to be prepared to run your new franchise. And, of course, find yourself a good franchise lawyer. We do exist for a reason.
Tell me what you think you know and I can fill in the rest. This way, you can buy with confidence and understanding.
If not me, so be it. But hire somebody. Because buying a franchise without legal counsel is a sure-fire way to regret your decision later…..
Where are you in the franchise process? I’d love to know. Feel free to email me and let me know!