I want to be My Own BOSS... Now What?!

Have you ever considered getting into business ownership for yourself? It can be extremely daunting. Putting yourself out there for your friends, family, community, and the world to see can be an extremely vulnerable position, especially for those who have never done it before.

In The E-Myth, Michael E Gerber speaks on the "Entrepreneurial Seizure", in which a person experiences the immediate and unhinging urge to leave their job, stop working for someone else, in order to "be there own BOSS" and work for themselves. Has this ever been YOU?

In this moment, all the concerns that have kept them from making the leap before no longer seem to matter:

What about my secure pay check?

What about the benefits package for my family?

What about the consistency of having a routine laid out for me?

What about the community I have built with my co-workers?

In this moment, the person experiencing the Entrepreneurial Seizure no longer cares because they have had enough "making other people rich" and having to follow another incompetent leader.

This is when the fun, but often not so fun part begins... How do I build systems? How do I scale? How do I work on the business but not get stuck in the business? How do I build a sales funnel?

There are essentially three ways to get into business ownership

1. Start a business from Scratch
2. Buy an Existing Business
3. Invest in a Franchise Concept

As someone who has gone down all three paths I can tell you from first hand experience, there are pros and cons to all three. One method is not inherently better than the other.

What you need to determine is: What do you truly want to get out of owning your own business?

I find that the "Widget" itself is not as important as what the "Widget" can do for your livelihood and the achievement of your goals!

Where I find most people getting stuck is they haven't put enough thought into what type of business owner and leader they want to be.

Just because you have had a bad boss, doesn't actually mean that you are going to be a good boss to yourself, or the people you hire. The abused can often become the abuser. In order to prevent this from happening and to truly become a great BOSS, you have to put in the WORK. It starts up front.

What do you want your culture to be? What type of individuals will be the right fit for the service or product you will be providing? What is your leadership style? What are your strengths and weaknesses? What is your personality type?

It might seem silly, but these questions are important if you ever want to build something that is bigger than just YOU. The easiest thing in the world is to start a business, go all in, only to find yourself burnt out and trapped after the first year because you can't get out of your own way.

When starting a business from scratch, these questions just add more complexity to issues that will inevitably come naturally with what your business is actually going to be! How are you going to market the business? Are you offering a product or a service? Do you need a brick and mortar location, or can you start from your house?

Starting a business from scratch comes with numerous complexities, many of which franchise ownership can help mitigate. Here are some of the key complexities and how franchise ownership addresses them:

1. Brand Recognition

Starting from Scratch:

- Building a brand from the ground up is challenging and time-consuming.

- Requires significant investment in marketing and brand development.

Franchise Ownership:

- Leverages an established brand with existing customer recognition and loyalty.

- Benefit from national or regional marketing efforts conducted by the franchisor.

2. Proven Business Model

Starting from Scratch:

- Requires developing and refining a business model, which involves trial and error.

- High risk of failure due to untested strategies.

Franchise Ownership:

- Offers a proven business model with established operational procedures.

- Access to successful business practices and systems.

3. Training and Support

Starting from Scratch:

- Entrepreneurs must learn everything independently or hire experts, which can be costly.

- Lack of guidance can lead to mistakes and inefficiencies.

Franchise Ownership:

- Franchisors provide comprehensive training programs for franchisees and their staff.

- Continuous support in various areas such as operations, marketing, and management.

4. Supply Chain and Purchasing Power

Starting from Scratch:

- Establishing reliable supply chains can be difficult and expensive.

- Limited purchasing power leads to higher costs for goods and materials.

Franchise Ownership:

- Access to established supply chains and negotiated bulk purchasing agreements.

- Benefit from the franchisor’s relationships with suppliers for better pricing and terms.

5. Marketing and Advertising

Starting from Scratch:

- Requires significant investment to create effective marketing strategies.

- Difficult to achieve broad reach and brand awareness.

Franchise Ownership:

- Franchisors often run national or regional marketing campaigns.

- Franchisees contribute to a marketing fund that supports broader advertising efforts.

6. Risk and Financial Stability

Starting from Scratch:

- High risk of failure, especially in the early stages.

- Limited financial stability and difficulty securing funding.

Franchise Ownership:

- Lower risk due to the established business model and brand recognition.

- Easier access to financing as lenders are often more willing to fund franchises.

7. Regulatory and Legal Compliance

Starting from Scratch:

- Navigating local, state, and federal regulations can be complex and overwhelming.

- Risk of non-compliance and associated penalties.

Franchise Ownership:

- Franchisors provide guidance on regulatory and legal requirements.

- Support in obtaining necessary licenses and permits.

8. Research and Development

Starting from Scratch:

- Must invest in research and development to stay competitive and innovate.

- Time-consuming and resource-intensive process.

Franchise Ownership:

- Franchisors invest in R&D and continuously improve products and services.

- Franchisees benefit from ongoing innovation without direct investment.

9. Economies of Scale

Starting from Scratch:

- Difficult to achieve economies of scale with a single, small operation.

- Higher per-unit costs for goods and services.

Franchise Ownership:

- Benefit from the franchisor’s economies of scale in purchasing, marketing, and operations.

- Lower costs and higher efficiency.

By addressing these complexities, franchise ownership can provide a more streamlined and supportive path to business ownership compared to starting a business from scratch.

Now, there are definitely issues with franchises. Believe me! I have been a franchise owner for a decade with multiple brands now in my portfolio. No brand is perfect. We will save the stories for another newsletter... BUT! There could be a right brand for you if you are willing to focus clearly on your vision and what you want the business to accomplish for you life and your legacy.

If you are interested in learning more about how to get into business ownership, I offer free strategy session to determine which path into business ownership is right for YOU.

Click the link below to schedule a free, no obligation call: https://calendly.com/matthew-streetwise_franchising/30min

I am also the host of The Streetwise Podcast where I help people get off of ZERO and become the person their dreams need them to be by offering high interview and lessons from myself and high caliber individuals in the franchising world, entrepreneurs, professional athletes, best selling authors, and more. Check it out wherever you listen to your favorite podcasts:

https://podcasters.spotify.com/pod/show/matthew-mcreynolds

Until next time, Stay Humble, Stay Hungry, Stay STREETWISE!

Peace!