Some feel their income isn’t enough for the lifestyle they want and the future they want to have. One way to earn extra is to franchise. However, some don’t like taking the risk to quit their job and go full time on their business.
The question that lingers in their mind is that, will their endeavor surpass their employment paycheck or at least match it? There have been success stories of employees simultaneously running a business.
Profiles of Franchisees
You are not alone in your search for extra income and a better life. Many employees want to start a business without giving up their day jobs. They have a career with a steady paycheck, but they want more out of their lives. Some are not fully employed but do consulting or freelance for various companies.
Some are unemployed but don’t want to fully commit to self-employment or operating their own business.
Stay-at-home moms and dads also want to earn extra while taking care of their children. Retirees want to supplement their pension without going full-time for work or a business.
Franchising fits this description because of its model. They can delegate responsibilities to a manager and just implement the system they acquire from the franchisor.
Why Stay Employed and Run a Franchise?
Even if you fit the profile of franchisees, you might still have doubts about taking the plunge of keeping your day job and starting a business. Here are some reasons to follow this path:
- Running a franchise and keeping your day job provides you with a steady source of income. Regardless of the industry, businesses can rise and fall quickly. If you go all in on your shop, bar or whatever, you are at risk of spending all your savings and get zero returns. The potential for profit is high, but also the potential for huge losses. Staying employed guarantees money going into your bank account while you learn the ropes of the business you started.
- Juggling both a career and business provides you with a smooth transition to go full-time with your chosen franchise. A lot of uncertainties exist when you run a business. You want to be financially and emotionally prepared to hurdle the challenges and the highs and lows of being an entrepreneur.
- When you run a business and keep your job, you spread the risk evenly. It is difficult to commit when there is too much uncertainty and a high possibility of having no income despite all your troubles and expenses. Doing so allows you to keep a regular cash flow while determining if the franchise is a way out of your 9 to 5.
Potential Problems
A dessert or food franchise or any other comes with a lot of problems and risks along with huge profit potential. One of the problems you’ll have is financial; you’ll spend the money you make from your day job to start the business, maintain it and improve it until it generates a profit.
You’ll also feel more pressure and stress doing both simultaneously. You might have to work seven days a week every month. The stress may lead to health problems and time management difficulties.