How do you know you’re ready to be your own boss?
The message isn’t going to come from your friends. It’s not going to come from a spouse, a parent or a sibling. It’s not going to come from a co-worker, a motivational speaker, or a business consultant.
The only person that will know is you. You just need to listen to your own thoughts.
When most people think about retirement, they picture a life of leisure, complete with long walks on the beach, mornings on the golf course, long lunches and afternoon naps. Mix in some time with the grandkids and a bit of exotic travel and voila! — you have the perfect retirement.
If only that were true.
The fact is, most people are not going to retire that easily. Most won’t truly retire at all! Recent studies indicate 70 percent of non-retired Americans plan to work as long as they can during their retirement years, mostly due to financial reasons. Not only that, but Harvard Medical School recently shared findings from the ongoing U.S. Health and Retirement Study that “among 5,422 individuals in the study, those who had retired were 40 percent more likely to have had a heart attack or stroke than those who were still working.”
So what do you do if you don’t want to work in a traditional job but would rather not put your health in decline?
For many older Americans, they look at a franchise business for myriad reasons. Here are just a few.
It fulfills a bucket list goal. In a 2015 survey, Gallup found that 57 percent of Americans would rather have their own business than to work for someone else. The idea of starting a business from scratch can be intimidating for someone in their golden years, but a franchise provides a proven model of success and unmatched support to help franchise owners win in business.
It presents a new challenge. Several studies point out how important it is for seniors to keep their minds active with new challenges in order to ward off brain health deterioration and dementia. For a lifelong employee, the opportunity to start a new chapter as a franchise business owner presents countless new challenges while maintaining a safety net of the franchise system support structure.
They can use their 401K account to purchase a franchise. For most Americans approaching retirement age, the majority of their net worth is tied up in their home and their retirement accounts. Assuming most people don’t want to take out a new mortgage on their home, franchise candidates can instead use their 401K in order to purchase the franchise without taking any tax penalties. Here’s a story from my friends at Guidant Financial on how it works.
It provides income while diversifying assets. Most people will fund their retirements with a combination of annuities and investment accounts, but neither of them are 100 percent reliable. Nothing really is, so having a diversified portfolio to provide income offers protection from financial downturns in one segment or another. For those concerned with diversification, recession-resistant franchises are attractive because they do well when investment accounts suffer.
It offers a legacy. Franchise businesses purchased by parents but operated by their children provide a passive stream of income during retirement and a growth opportunity for loved ones. Quite often, the children will become part- or full-time owners once their parents are ready to divest.
Ready to explore franchising? Give me a call at 919.846.7111 or send me an email at firstname.lastname@example.org.
Jim was excited to join “Money Matters with Matt” again last week to breakdown the ever-popular semi-absentee franchising model and how people can win working on their business without spending too much time in their business. Running time is under 11 minutes.
Think fast: If you called a franchise company you were interested in pursuing, would you know what questions to ask a franchisor?
If you’re like most people, you came up with two answers.
You know who you are.
You’ve been in your current job for long enough and no longer see a future you want. You spend your evenings thinking about how you need a change. You’ve become way too comfortable hitting the snooze button over and over in the mornings rather than getting up to face another day of work. You’ve dreamed of being your own boss, of breaking free from the chains of traditional employment and having a go as a small business owner, but…
You’ve done nothing about it.
A regular line franchise consultants like myself throw out when discussing franchising is that “it’s not just flipping burgers.” Obviously, that’s a reference to the reigning king of the franchise, McDonald’s, because it’s most often what comes to candidates’ minds when talking about a franchise. Major brands like that have certainly played a significant role in turning the franchise industry into the powerhouse that it is today, but they aren’t doing it alone.
If you’ve ever been downsized, you know how stressful it can be. It’s initially a shock. Then there is a grieving process for the professional life lost and finally an acceptance of what happened and a decision to move on.
People will offer consoling words such as, “I’m sorry to hear that.” or “If there’s anything I can do, please let me know.” I only have one word for those just downsized out of Corporate America.
It’s every property owner’s biggest nightmare. A water heater leaks. A washer hose fails. A fire breaks out. Property damage affects millions of Americans each year, with 37 percent of U.S. homeowners claiming to have suffered losses from water damage. In fact, the average cost of a home water damage insurance claim is almost $7,000! Continue reading
Jim Judy had a great time chatting about the lucrative world of franchising on the personal finance podcast, “Money Matters with Matt” last week. If you’ve ever considered entrepreneurship or business investment through franchising, give it a listen. Running time is only 12 minutes.