Why Smart Parents Are Skipping College Tuition For This

What if the best business school isn't a school at all? As a franchise consultant with years of experience, I've seen firsthand how real-world business ownership can outpace traditional education when it comes to creating successful entrepreneurs.?

Don't get me wrong – I'm not here to bash college degrees. They have their place. But for those with an entrepreneurial itch, there's something powerful about learning by doing.

Let me paint you a picture. A childhood friend of mine started working in restaurants at 14. By 19, he was an executive chef. By the ?time I was graduating college with a psychology degree, wondering what to do next, he was opening his first restaurant in Destin, Florida.

While I was paying tuition and playing around, he was earning a salary and gaining invaluable experience preparing him for business ownership. That's when I first started questioning the traditional path.

The Money Talk

Let's break down the numbers. A college student working part-time might earn between $20,000 and $40,000 over four years. Not bad, right? But compare that to a franchisee. Even on the low end, they could be looking at $200,000 to $400,000 in the same period. And that's not counting the potential for building equity in their business.

But it's not just about the money. It's about what you learn along the way.

The Real-World Classroom - Franchisees Learn How To:

• manage employees
• provide customer service
• navigate regulations
• overcome daily challenges ?- operations
• budget for cash flow
• meet payroll
• market their business

Most importantly, they're learning how to fail and get back up – over and over again.

College students learn these things too, but often in theory. There's a world of difference between reading about customer service and dealing with an angry customer face-to-face.

"To be young and entrepreneurial is to be brave enough to fail and wise enough to learn from it." – Kirk Douglas

The College Experience

Now, I'm not saying college doesn't have value. In fact, I'm grateful for my degree. Those four years can be transformative. You make lifelong friends, create unforgettable memories (game days are a blast), and yes, you learn a lot. A degree can open doors and, on average, lead to higher salaries compared to just a high school diploma.

But for the entrepreneurially minded, it might not be the best fit. Why? Because every day in business is a new exam, and the stakes are real.

Identifying the Entrepreneurial Spirit

So how do you know if your kid has that entrepreneurial spark? Look for the signs. Are they always coming up with money-making schemes? I remember selling Bubblicious gum in fourth grade, buying packs for 20 cents and selling them for a quarter. Later, I was fishing golf balls out of lakes and selling them to golfers.

These might seem like small things, but they're huge indicators.

Does your child:

• Find creative ways to make money?
• Show leadership tendencies?
• Think differently from their peers?
• Take initiative in problem-solving?

If your child is doing things like this, pay attention. They may be wired for business ownership. Why not nurture them in a way that provides hands-on experience?

The Franchise Advantage

Why a franchise? Because it gives you a playbook. You're not starting from scratch, trying to figure everything out. You're stepping into a proven system with training and support. It's like starting a football game on the 20-yard line in the red zone – you're already close to scoring.

But remember, it's not risk-free. Nothing in business is. The key is to start small and learn as you go.

Testing the Waters

Before diving into a franchise, encourage your kids to get some real-world experience. Keeping with the restaurant theme, if they're waiting tables at a restaurant, watch how they approach it:

• Do they see beyond the immediate task?
• Are they thinking about how the whole operation works?
• Do they hunger to grow into new roles taking on responsibility.
• Do they envision their own restaurant (or ____________ business) one day?

Those may be signs…

The Mindset Shift

Here's something crucial:?the shift from an employee mindset to an owner mindset. Growing up, I always saw myself as the kid cutting grass or painting houses through high school and college. My Dad was a dentist, so I didn't hear family business type conversations over dinner. I never thought about building a team to do those things. That's the difference between working in a business and owning a business - working on the business.

"The best time to start a business is when you’re young. Your fearlessness and fresh perspective can lead to groundbreaking ideas and innovation." – Richard Branson

Starting Young

So, when is someone ready to start managing their own franchise? There's no magic age, but typically we're talking about 19 or 20 – around the time many are in college. The key factors are maturity, discipline, and that hunger to learn and grow.

For those not ready to dive in, there are other options. Military service can provide excellent training and even pay for college. Or, work in the field you're interested in before making the leap to ownership.

Risk and Reward

Both college and franchising involve risk. College often means taking on debt – the average student debt in the U.S. is over $37,000. Franchising involves financial risk too, but you're building something tangible from day one.

The key is to start small. Look into home services franchises or other low-cost franchise options. These can often be started for under $100,000 and provide a great learning experience with manageable risk.

Parental Involvement

If you're a parent considering this path for your child, think about how involved you want to be. Some parents might set their child up with their own LLC and let them sink or swim. Others might partner with their child, providing guidance along the way. There's no right answer – it depends on your situation and your child's needs.

The Lifelong Learner

Whether your child goes to college or starts a business, the most important thing is to foster a love of learning.?

The most valuable investment anyone can make is in themselves. Continuous self-education, whether through formal schooling or real-world experience, is the key to long-term success.

In the end, there's no one-size-fits-all answer. College and franchising both have their place. The key is to recognize your child's strengths and interests, and to be open to unconventional paths. Sometimes, the best education doesn't come with a diploma – it comes with a set of keys to your very own business.

Embracing the Entrepreneurial Journey

Parents often default to what they know – mine did – I was supposed to be a Dr. or a lawyer. ?It’s easy to push kids towards traditional paths because they feel safe and familiar. But in today's rapidly changing world, the safest bet might be teaching our children to create their own opportunities.

Franchising offers a unique middle ground. It provides the structure and support that young entrepreneurs need, while still allowing them to flex their entrepreneurial muscles. It's like training wheels for business ownership.

Think about it this way: In college, your child might spend four years studying business plans. In a franchise, they'll write and execute a real business plan in their first few months. They'll learn to read financial statements not for a grade, but because their livelihood depends on it. They'll master marketing not from a textbook, but by seeing real-time results from their efforts.

The Power of Community

One often overlooked aspect of franchising is the built-in community. When you buy into a franchise, you're joining a network of other business owners facing similar challenges. This peer group can be invaluable for a young entrepreneur. It's like having a ready-made alumni network, but one that's actively engaged in the same industry and facing the same day-to-day issues. As a consultant, I've seen countless franchisees lean on each other for support, advice, and encouragement. This kind of real-world networking and mentorship is hard to replicate in a classroom setting.

Adapting to Change

Another advantage of the franchise model is its ability to adapt to market changes. While college curricula can take years to update, franchises are constantly evolving their business models to stay competitive. This means your child will be learning the most up-to-date business practices in real-time.

For example, during the recent pandemic, many franchises quickly pivoted to online ordering, delivery services, and contactless operations. Franchisees learned valuable lessons about adaptability and crisis management – lessons that will serve them well throughout their careers.

"I have not failed. I've just found 10,000 ways that won't work." - Thomas Edison

The Holistic Education

One of the key things about learning through franchising is how holistic the education becomes. Your child won't just learn about business; they'll learn about people, about themselves, about their community. They'll develop soft skills like empathy, leadership, and resilience – skills that are crucial in any career but are often underdeveloped in traditional educational settings.

They'll learn to see opportunities where others see obstacles. They'll learn to innovate within the constraints of a proven system. These are the kinds of skills that create not just successful business owners, but successful humans.

A Word of Caution

Now, I want to be clear: franchising isn't for everyone. It requires hard work, dedication, and a willingness to take calculated risks. It's not a get-rich-quick scheme or an easy way out of traditional education. In fact, many successful franchisees have college degrees that they fall back on and use in their business operations. The key is to know your child and to be honest about their strengths, weaknesses, and passions.

If they're academically inclined and thrive in classroom settings, traditional college might be the best path. If they're hands-on learners who are itching to get out into the real world, franchising could be a game-changer.

The Hybrid Approach

It's also worth noting that this doesn't have to be an either/or decision. Some of the most successful entrepreneurs I know have combined traditional education with real-world business experience. They might start a franchise while taking business classes at night, or use their franchise earnings to fund their college education later in life.

The beauty of franchising is its flexibility. It can be a full-time career or a side hustle. It can be a stepping stone to other business ventures or a lifelong commitment. The important thing is that it provides real-world experience and income from day one.

The Future of Education

As we look to the future, I believe we'll see more and more parents and young adults considering alternative paths to success. The traditional model of four years of college followed by entry-level jobs is already being disrupted by technology, changing work norms, and economic realities.

Franchising represents one alternative path – a path that combines education with experience, theory with practice. It's a path that can teach young entrepreneurs not just how to get a job, but how to create jobs. Not just how to earn a living, but how to build a life.

"Your time is limited, so don’t waste it living someone else’s life." - Steve Jobs

Your Child's Future

Steve Job was more accurate than he realized when he said that leaving behind a business that touches many of our lives. As you consider your child's future, I encourage you to think outside the traditional box. Look for signs of entrepreneurial spirit and nurture them. Explore all options, including franchising, and don't be afraid to take the road less traveled.

Remember, the goal isn't just to prepare your child for a job. It's to prepare them for life. And sometimes, the best preparation doesn't happen in a classroom. Sometimes, it happens in the day-to-day challenges and triumphs of running a business.

In the end, whether your child goes to college, starts a franchise, or forges their own unique path, the most important thing is that they never stop learning,?growing, and pushing themselves to new heights. Because in today's world, the ability to adapt, to learn, and to create value will always be in high demand – no matter what path they choose.

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Host of Franchise Profits Podcast talking with franchisors franchise leaders - https://www.yourfirstfranchise.com/your-first-franchise-podcast

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