One of the things aspiring entrepreneurs often ask me is “how much money can I earn?” Unfortunately, this is a very difficult question to answer because the amount of money one earns from a business is a direct byproduct of how well-run the business is – in other words, profitability is an outcome and not an automatic.
It is because of this that choosing a business based solely on earnings potential is actually one of the worst ways you can choose a business. Instead, what we recommend is for you to “reverse engineer” your entire search process – in addition to your income-earning goals, what are your lifestyle goals? What things are you really good at? What things are you not good at or dislike doing? What kind of hours do you want to work? How big a staff do you want? What kind of staff do you want – hourly transient labour or skilled workers who have invested in their own careers? What about scalability – do you just want one location or do you want to build a small empire with several locations? You’ll also want to think about your long-term involvement. Do you want to have a business that requires your full-time attention for the entire life of the business? Or do you want a business that enables you to grow it to the point where you can hire a full-time manager and enable you to go into “passive engagement” mode where you have lots of lifestyle flexibility while your manager creates an annuity income for you?
As you can begin to get a sense, these are just a few of the myriad of questions that should be seriously considered when you want to buy a franchise or business. The answers to many of these questions have a significant impact on your earnings potential, both short-term and long-term. So asking “how much money can I earn?” is not something you should be asking up front; instead, it is something you should clearly be able to forecast after serious research. If the work aligns with your skills, abilities and interests, AND you can confidently see that the business can enable you to achieve your financial and lifestyle goals, then buy it… otherwise, keep looking!
Thanks for listening; I hope to have the opportunity to work with you in finding YOUR ideal franchise. All the best!