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Have you been thinking about owning a franchise with your spouse? We all know that running a business of any kind can be stressful, and that stress can permeate into your personal life. Because there’s no separate home to “escape to” when owning a franchise with your spouse, it’s wise to take a good look at your relationship dynamic before you make that big decision. How can you assess whether you’ll work well together as business partners? Here are 3 questions to consider:
1. How well is your marriage working?
A good marriage is prerequisite if you’re thinking about owning a franchise with your spouse. Like a business, a harmonious marriage requires good communication, skilled problem-solving, and agreement on major financial issues. Mutual trust and respect are key. If you don’t relate well as spouses, you won’t relate well as business partners. Each of you should be able to give and receive constructive criticism and feedback without damaging your relationship.
2. Do you have complementary skills?
A business relationship is more likely to be productive when the whole is greater than the sum of its parts. In other words, the skills each of you bring to the table should fit together to generate greater results than you could achieve separately. Successfully owning a franchise with your spouse requires the division of job responsibilities from the very start. Know which of you will take the lead on each aspect of the business. For example, one of you could be in charge of “home office” administration while the other manages employees working in the field.
3. Can you weather risks and bumps in the road?
Risk is inherent in business ownership. You’ve probably encountered challenges in your marriage, as most of us have. How well you do at addressing them will likely mirror your ability to face adversity in business. Have a plan for what to do when unexpected challenges arise. What if one of you suddenly becomes ill or unable to continue working?
Above all, when owning a franchise with your spouse, remember to support each other in every way you can. The manner in which you weather challenges will determine your success, both at home and in your business.Read More
A growing percentage of franchise owners are running their businesses “on the side,” thanks to the semi-absentee ownership model. Semi-absentee owners enjoy the benefits of franchising, including proven systems and unparalleled support, while devoting an average of 15 to 20 hours a week to their business. They’re able own a business without quitting their day job. The limited time commitment is possible because semi-absentee owners hire managers/employees to run the day-to-day operations of the business.
While this model was previously limited to brick-and-mortar businesses such as hair salons, laundromats, and car washes, opportunities have broadened, expanded, and become more affordable. Industries such as fitness, cleaning services, and executive recruiting are starting to successfully use this model.
Different reasons draw people to semi-absentee ownership. Some people plan to eventually leave their corporate job, but want to build up their side business first. Others want the financial security that multiple sources of income bring. Whatever the reason, most successful semi-absentee owners share these characteristics:
They’re risk reducers
Successful semi-absentee owners see the value of mitigating the risk inherent to starting a business. They prefer not to have all their financial eggs in one basket. And keeping their full-time job helps them weather the startup period until their franchise business becomes profitable.
They have patience and a significant income stream
The semi-absentee model works best when there is a significant different between what the owner will pay a manager and what the owner earns in their current job. This cushion helps the owner ride out the period during which the business grows to profitability.
They’re ready for the ramp-up
Launching any business, including a well-supported franchise, is time-intensive. At the start, even semi-absentee owners need to immerse themselves in the business and learn how the daily operations work. Maintaining close contact with the franchisor helps them learn best practices. And they keep initial costs down by handling the managerial duties themselves at the start, while working to grow the business.
Their calendar is flexible
Successful semi-absentee owners have enough flexibility in their lives to manage their new business effectively. Day jobs that require extended or frequent travel or a rigid schedule can make it difficult to run a side business. Owners with a degree of control over their professional and personal lives, who can devote adequate time to their business, are more likely to thrive.
If you see yourself in these descriptions, semi-absentee ownership may be something to consider. Diversifying your income provides a degree of security and assurance that you’ll be able to handle whatever comes your way with respect to the future of your day job. A final note of important advice: make sure to seek out franchises that are specifically suited to the semi-absentee model.Read More