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Can you earn your current corporate salary from day one of starting a business?

Something that I seem to come up against all the time is people coming out of corporate employment and want to be their own boss but still earn their corporate salary.

 

So, is that even possible? the answer is yes of course it is. However, you are going to need to have pretty deep pockets to earn a big salary from day one.  Let’s say you earn 100k now and you want to earn that by starting your own business, the best way to start is by buying an existing one. This then gives you a head start by already having customers and cash flow from day one.

 

Now that doesn’t have to be a franchise, it can be a stand-alone business, however we all know the benefits of buying a franchise!! especially when you are coming out of a corporate environment. So what better way to buy a business than to buy a franchise resale. Not just an existing business with customers and cash flow from day one but the support, knowledge & expertise of a franchisor who knows how to grow a business quickly.

 

A big myth that I’d like to dispel here and now is that franchise Resales are failing businesses, it’s not true, like any business franchises can and do fail, but there are so many other reasons for selling any business including a franchise.

 

So back to my main point; if you want a business that will earn you 100k, then you really need to be looking at the purchase price and the profit margin. There is no easy answer to this, it’s not easy to say what the profit margins should be because different sectors and even businesses in the same sector will vary because the overheads and the costs of sales will vary.

 

So actually, you might need to invest 800k in a business to earn 100k. You need to do your due diligence on the business to find out what it’s making.   On the point of due diligence, it’s worth pointing our here that people tend to wake up in the mornings and decide to sell their business with very little preparation. The accounts might look bad, because they have employed a good accountant to keep their tax liability down.  So, you might only need a business that is £300k. Are you catching my drift?

 

We all know a business is worth what someone is prepared to pay for it. So, you want to earn your 100k? you have come out of the corporate world with a nice pay off or have some savings and you have £30k cash to spend.  What do you do? A bank could lend up to 70% depending on the Brand and your individual credit rating. So, with 30k cash, the bank will lend you 70k, you have to take into account working capital and any extra fees a franchisor will charge on top of the business selling price. So based on what I have said about profit margins that means you will have an income of around 25-33k in your first year. So ask yourself, do I need to earn £100k in the beginning or will a lower income suffice to begin with if it gives you a better work life balance? of course this is a guesstimate and not based on anything in particular, but I hope it’s given you some quick food for thought when you are looking at the earnings aspect of buying a business.

Michael

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The Advantages of Attending a Franchise Event

Whether you are thinking of investing in a franchise or are running one already, attending a franchise event can be a great way of meeting like-minded people, getting to know your subject better and exploring new and exciting opportunities.

  1. You Get to Talk to the Experts

You can get all the advice in the world but if it doesn’t come from the experts, how much use is it? At franchise exhibitions, you can be sure that the people you are talking to are all running successful, profitable franchises. At the bigger events like the bfa exhibitions you can meet a range of experts from all sectors, across all industries and get the right information you need to make more informed decisions.

  1. Franchise Clinics

Franchise events generally involve walk-in clinics where you can get specific advice about how to go about investing as well as how to get involved with the best franchise. That can mean getting the heads up on things like financing, choosing the right franchise that fits your skill set and the pitfalls to avoid if you want to be successful.

  1. Seminars and Real Life Experience

Franchise events also hold seminars on specific issues relating to the industry, all of which can be very useful to the budding franchisee. You get to listen to real-life stories that can help build your confidence and point you in the right direction. With guest speakers who are at the top of their game, you also get the opportunity to quiz them about all aspects of investing in a franchise.

  1. Learn About the Latest Developments

Whether it’s help with funding or finding out what’s hot and what’s not, a visit to a franchise event can help you discover a whole lot of information you can’t find anywhere else. Like most industries, franchising doesn’t stand still and there are always innovations and new ways of thinking coming to the fore. If you want to keep your finger on the pulse of what’s happening, then these are the events to attend.

  1. A Great Place to Network

Not only are there plenty of experts at a franchise exhibition, you’ll be able to talk with and get to know other people who are thinking about investing. These can be individuals from all walks of life and with a variety of interests who can help you make up your mind which direction you are going to take.

For those offering a franchise, an event such as this also provides the opportunity to meet and get to know potential high quality franchisees. It’s an opportunity for them to show why they think their brand is suitable for investing in and what potential franchisees can get out of a partnership with them.

The next big one, the National Franchise Exhibition at the NEC in Birmingham, starts on 30th September and runs through to 1st October 2016. All the exhibitors are quality accredited franchise brands and there are some big names amongst them, including McDonalds.

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The Benefits of Buying a Franchise

There are many people who dream of being their own boss and running a business. Go online and you’ll find plenty of stories of entrepreneurial success – simple ideas that have taken off and made their creators successful. It’s a big move though. Going out on your own is fraught with dangers, however, even in today’s hi-tech world where we have so many business tools available.

Buying a franchise is one option that many budding entrepreneurs consider as an alternative. It provides a way of running your own business with an already proven product. You also get the support you need which, while it doesn’t guarantee success, gives you a good chance of making it if you put in the work and have the right attitude.

A Ready Made Business Model

Choose the right franchise to buy into, and you have a business with a proven track record, a strong, recognised brand and a loyal customer base. It gives you a big leg up compared to starting a business of your own from scratch and the effort you need to put in to get traction in a competitive market place. The way business is done in a franchise has already been mapped out for you including the look and feel of the product and how it is marketed to customers.

Training and Support

One of the key factors in going it alone is learning the skills and developing the business acumen that lead to success. For many new entrepreneurs with start-ups this can be an extremely sharp development curve and mistakes can often be costly – that’s why a large number of new business fail within their first year.

A good franchise opportunity comes with the right training and support that is tailored to your needs. They’ll be able to identify where you need to develop your skills and provide the kind of help that many start-up entrepreneurs can only dream of. With all that experience and assistance to fall back on there’s obviously more chance of success with a franchise. Don’t forget, a good franchisor will only choose those people who have the potential to help grow and promote the company – it’s not just a simple question of attracting people who are willing to pay to use their brand. That’s not in their interest.

Lower Risk, Great Returns

Because you’re buying into a proven product or service, the risks of failure are certainly lower. If you have the right drive and determination and pick the appropriate franchise that matches your entrepreneurial character, then you should rightly expect to succeed.  In return you get the independence that you would expect from running a small business with the financial benefits which go with that. You might also find it easier to get finance to run a proven franchise rather than one that is being started from the ground up.

You don’t need to have experience of running a business yourself to own a franchise and it gives you the chance to learn and develop your entrepreneurial skills ‘on the job’ as it were. What franchise companies are often looking for is the determination and ability to succeed rather than a proven entrepreneurial track record per se. That’s what makes it an ideal place to start for people who want to step out into the business world and blaze their own trail.