The Executive's Dilemma: Salary vs. Franchise Ownership

Do you want to know one of the statements I often hear as a franchise consultant? It’s, “Pete, I want to own my own business, but I just can’t walk away from my corporate salary.”

As someone who went cold turkey on corporate income and perks, I know exactly how it feels to mull the decision of giving up a lucrative bird in the hand (no matter how much you may or may not hate that job).?

Whether you are sporting the so-called “golden handcuffs” of significantly delayed compensation, unable to fathom giving up your current income stream, or just thinking multiple economic moves ahead, you should know getting into franchising doesn’t have to be an all-or-nothing endeavor.

The fact is, conditions are ripe right now to start a franchise as the ultimate “side hustle” to your corporate position. How so? Let’s look at six main ways:

1. Current Employment Climate

At this writing, unemployment remains extremely low—low enough that everybody who wants a job likely has one. As long as that’s the case, the skills and experience you bring to your corporate position earn you top dollar. But how long will it last? Indefinitely? That’s unlikely. These days, when you hold all the cards is the perfect time to explore your options for alternative income streams.

2. Gig-Oriented Economy

Every year, we’re living more in a gig-oriented economy. And because of that, even the oldest and stodgiest corporations must embrace staffers who won’t give up their side hustles. The door is open right now for people who want to start new businesses in ways that have never been open before. I think back to just a decade ago when I decided to leave my corporate job—the idea of me or anyone else in the executive group starting a side business at that time was very daunting.

3. Decline of Traditional Pensions

Traditional pensions are going the way of the dinosaurs. In 1998, 59% of Fortune 500 companies offered traditional defined-benefit pension plans. By 2019, that number was down to 14%. If you’ve secured a job with a substantial income, the next step is to consider how you will replace that income in retirement.?

Franchising is one of the few entrepreneurial paths that can be initiated and brought to profitability without requiring a full-time (and then some) commitment. In the long term, a well-run franchise investment, over time, can replace your corporate income.

4. Franchisors Want You

Becoming a franchisee once meant doing the day-to-day work yourself. Now, many franchise business opportunities have been designed for executives with jobs, requiring them to be involved in the franchise part-time 15-20 hours per week once the business is established. This time can be managed during commutes, lunch hours, or evenings, while an on-site manager handles daily operations.

5. Scalability of Franchise Investment

If you’re in the corporate world, you know growth is key. Many franchises offer programs for executive franchisees to expand into new markets. If you aim to build something big—enough to replace a six-figure salary—franchising can make it happen.? Just keep in mind that it takes time and scale to replace a corporate income.

6. Reducing Vulnerabilities of Corporate Employment

Owning your own business eliminates traditional vulnerabilities of corporate employment. Over 50? That's a risk. Over half of executives aged 50+ are pushed into retirement early. High salary? Another risk. Overqualified? Yet another. In economic downturns, highly compensated employees are often the first to go.

Take the Next Step

If you’re looking to create supplemental income, accumulate wealth, build a bridge to retirement, or simply reduce your dependence on your corporate position, franchising may be the solution you seek.

Want to learn more? Browse my library of free resources and subscribe to my blog at https://www.hireyourself.com. Got questions? Good! Contact me at [email protected], 630-904-7900 (call), or 630-345-4400 (text).?