Diversifying Your Assets
Merri Cronk
President| Sr. Franchise Consultant| Educational Speaker and Trainer| Advisor to Executives Exploring Franchise Ownership
I've been helping people explore franchise ownership for over 21 years, and I recognize that there are a lot of things that people have to ask themselves before knowing if franchising is right for them. There are many factors that go into making a decision like this, especially financially.?
Comparing Franchising to Corporate Jobs
For those that are currently employed, they begin to compare franchise ownership to their corporate jobs from a financial standpoint. They begin to wonder things such as:?
When people dig deeper into lifestyle wants or needs, they consider the cost of sending their children to summer activities, private schools or college. They may be planning travel, moving homes and other things that may enhance the way they live their lives. They may have a net worth goal they want to have to be able to retire.?
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Diversifying the Existing Portfolio
For those who have owned businesses before, the considerations are different. Diversification typically includes having other businesses that capitalize on a consistent customer base or getting into completely different types of industries. They are focused on the fit of the business in their portfolios, their return on investment, and the tax benefits or implications of the new addition.?
Funding Options
Funding options are important to consider when diversifying by adding a business. Some people will use their cash, retirement funds (some without tax or penalty consequence), loans against stock portfolios and home equity. Most people will seek business bank lending. Understanding the tax benefits or implications of these are important to making the right decision. The options differ by the person and their personal financial situation.?
Ways to Diversify
My step father, a man I affectionately called “ Mr. Edd”, taught me at a young age that diversification of my assets would lead me to great financial security and wealth. Mr. Edd told me I would need to invest in blue chip stocks, high risk stocks, real estate and my own business. I find many of my clients are starting to diversify. For many of them, adding in business ownership is the last piece. Franchising can be great for people who want to implement processes and systems for their own success, create that asset, and continue that diversification.?
Would you like to think through some of these things? I'd be glad to be your guide. Please scan the code that you see here and schedule a time for us to talk.