A few years back, I took a personality test that was bent toward business. Among other things, my test came back with comments like:
- ?He likes freedom from many controls.?
- ?Does not like constraints, at times he can be somewhat defiant and rebellious.?
- ?Has a tendency to lack diplomacy when confronted with too many or unreasonable constraints.?
Hah! I didn?t need a personality test to tell me that.
In fact, I?ve never thought I?d make a good employee. That was a big reason why I went into medicine. I realize now that I was naive, but at the time I thought I would be my own boss.
Boy was I wrong!
Medicine has become one of the most regulated industries in the world. Private practice is rapidly disappearing as the corporate practice of medicine is becoming the norm.
Doctors today are being bombarded with mountains of red tape that amount to nothing short of bloated bureaucratic nonsense.
Is it any wonder why there is an epidemic of physician burnout, depression, and suicide?
What was once a ?calling? has rapidly deteriorated into a ?job.?
And as my personality test points out, I?m not even well suited to be an employee.
I had already been investing in real estate and doing pretty well. However, I was in no position to quit medicine.
I knew that business was a place where I could be my own boss.
However, I had heard that 80% of all new businesses fail within the first 5 years.
I had a young family to care for and couldn?t afford to fail.
So, I took a look at franchises. A franchise is a way to get into business using a proven model for success. You don?t have to build it from the ground up. Instead, you buy the blueprint and get the training and ongoing support from an already established business.
Companies like McDonald?s, Taco Bell, Supercuts, ACE Hardware, Days Inn, GNC, and many more will provide you with their name, their products, their training, and their ongoing support to help you succeed in the highly competitive world of business.
Many people turn to franchises to stack the odds of success in their favor.
Unfortunately, this increased success rate comes with much higher startup costs.
Take for example Kentucky Fried Chicken. According to Business Insider it costs anywhere from $1.3 million to $2.5 million to open up a KFC. Also, the franchisee is required to pay KFC a 4% ongoing royalty on all gross revenues.
In addition, KFC requires that the Franchisee has a net worth of $1.5 million with minimum liquid assets of $750,000.
Unfortunately, KFC is not alone. Most successful franchises will have an opening cost well into the six figures range with many (like KFC) dipping into the seven-figure cost.
Look at the initial investment for the top 10 franchises of 2016 as reported by Entrepreneur Magazine:
- Jimmy Johns $326,000 – $555,000
- Hampton by Hilton $4,200,000 – $7,800,000
- Supercuts $144,000 – $294,000
- Servpro $156,000 – $210,000
- Subway $117,000 – $263,000
- McDonald?s $989,000 – $2,200,000
- 7-Eleven $38,000 ?- ?$1,100,000
- Dunkin? Donuts $217,000 – $1,600,000
- Denny?s $1,200,000 – $2,100,000
- Anytime Fitness $63,000 ?- ?$418,000
That?s a lot of money!
What about real estate? Is there a franchise model for successful real estate investing? One that will teach you to open your own business and invest like a professional commercial multifamily investor?
The short answer is no. ?But, I have found something very very close to it.
Strictly speaking, it is not a franchise as you won?t get a license to operate under their name.
However, you do get a blueprint to their business, a year’s worth – or longer if you need it – of training in their system, one-on-one training/coaching, and ongoing support?..and all at a fraction of the price!
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To Being Your Own Boss!
Dennis Bethel, M.D.