There are several strategies an investor can explore through franchise ownership, which offer multiple streams of income, thereby creating wealth. Most business owners want to be assured that they have consistent cash flow, so they are not “hunting and gathering” daily for revenue. Identifying which franchise opportunities offer these benefits are worth exploring.
Since there are thousands of choices, one can research, choosing a sector that is positioned for extraordinary growth, is the starting point of wealth creation. This task can be very overwhelming due to the number of choices in the marketplace. However, to make this process simpler, there is government data that identifies how various sectors are trending. The Department of Commerce, The Administrative of Aging, and other valuable government resources can help determine what sectors to consider. Some of the top trends include senior care, health care, real estate, automotive, health, and fitness and home-service businesses.
Once you identify the sector, you will want to “piggyback” other franchises that are complementary to your initial business. When you become a business owner, customers are more likely to work with you, if they know, like and trust you. So why not continue to offer more services or products to sell to your customers, thereby increasing your revenue streams and creating wealth. For example, you may consider a property management franchise and combine that sector with a handyman, inspection or fix and flip franchise. Some of these “add-on” franchises are low cost and can be funded with little money down through the SBA 7A Express loan program. Additionally, many franchisors offer attractive, in-house financing options for franchisees.
Finally, focus on businesses that offer recurring revenue streams. It makes sense to explore opportunities that customers regularly need so that your cash flow is consistent. I personally target real estate, home-service, automotive, and fitness businesses. Each sector has various considerations that you need to evaluate; however, it is essential to consider what best fits your temperament and budget.
The goal of most investors is to identify a profitable sector, cross-sell additional services or products to your buying customers and then take the profits and invest in long term assets such as real estate so that you have a consistent monthly income. By following these few simple strategies, you can live out your golden years in prosperity.
– Sue Bennett, CFC
Sue Bennett, CFE, CFC; Co-owner of FranFinders, a Franchise Consultancy and Funding Company, with her husband Rob, since May 2008. They have helped hundreds of clients create wealth through franchise ownership. She is also the co-owner of several storage facilities in NC, SC and GA.