According to an analysis of the Federal Reserve data by the Wall Street Journal, the number of people under 30 who own a business has fallen by 65% since the 1980s. That makes Millennials the least enterprising generation in recent history. Becoming the owner of your own franchise is both exhilarating and liberating, a chance to be your own boss and explore your dreams creatively. But it also means overcoming second thoughts about self-employment, and any deep-seated apprehension about entrepreneurship that you may harbor.
Some common fears about becoming a new franchise owner include:
1. Securing Financing
Capital is one of the biggest fears entrepreneurs have. Sometimes a franchise model barely remains afloat and hardly generates profit to provide owners with a meaningful income. In such a situation, it is not uncommon for franchisees to often resort to their 401 (k) retirement account for operating funds.
2. Too Many Competitors
Location and market niche are key for a franchise. Choosing a territory that attracts new competition or corporate businesses is frustrating for any new business owner. A market that is awash with similar products and bigger established brands can stall your franchise flight before it even takes off.
Fear that your product is not viable for the market, that your skills are not good enough, or that you will become overwhelmed can prove debilitating. There are always going to be small failures such as a terrible promotional video or a lukewarm email campaign. Understanding that there is always room for improvement helps maintain self-confidence as well as focus.
4. The Unknown
Owning a business is a lifestyle, not a job. Fluctuations in the economy, changes in regulatory laws, and the constant ebb and tide of competitors are part and parcel of business. Accepting it and realizing that nobody can predict the future helps allay fears of the unknown.
Being a franchised business owner means that you are never alone. There are many support services that franchise companies offer to entrepreneurs as opposed to solo ventures:
- Lower upfront costs, including in-house funding and financial aid
- Training programs on running a business
- Reference materials and resources
- Assistance with skills such as marketing, strategic planning, and technology
- A ready marketing plan that includes a budget for national marketing
- A familiar system and work formula that has already proven itself in other locations
For more information on becoming a new franchise owner, visit our business consultants at FranNet of New Jersey and New York.