{"id":764,"date":"2010-10-14T06:53:14","date_gmt":"2010-10-14T06:53:14","guid":{"rendered":"https:\/\/expandsmtest.com\/franchiseking\/popular-reasons-for-buying-a-franchise-part-5\/"},"modified":"2017-01-24T01:30:08","modified_gmt":"2017-01-24T01:30:08","slug":"popular-reasons-for-buying-a-franchise-part-5","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/popular-reasons-for-buying-a-franchise-part-5","title":{"rendered":"Popular Reasons For Buying a Franchise (Part 5)"},"content":{"rendered":"<\/p>\n

In Part 4 of this series<\/strong> on "Popular Reasons For Buying a Franchise<\/strong>," I discusssed the money<\/span><\/strong> part of the equation, and how money wasn't as important as some people thought. In case you are just joining in, here's Part 4<\/a><\/strong>.<\/p>\n

Now, I'm going to bring up a reason that's not only a popular one, but one that's a close cousin to money. It's one that you may be thinking about, if you're in the market for a franchise of you're own, but it may not be top of mind…<\/p>\n

<\/p>\n

Let's talk about something that's invisible at first, but starts to appear, as your franchise starts to grow;<\/p>\n

Equity<\/strong><\/p>\n

A good portion of the folks that attend my presentations on franchise ownership<\/a><\/strong> usually include folks that have been downsized, and who are "looking at all of their options<\/em>."<\/p>\n

\"Confused\"<\/a> <\/p>\n

One of the questions I pose to attendees is this one;<\/p>\n

"Have you ever been able to sell a job<\/em>?"<\/p>\n

I usually get some blank stares, and then I continue;<\/p>\n

"What I mean is, do you think it's possible to build equity as an employee?<\/strong> In other words, if you know that you're position is about to get<\/em> eliminated<\/a><\/strong>, are you able to sell your job to someone? Is it worth anything<\/em>?"<\/p>\n

Some of the attendees bring up the fact that they get a severance package, so that's really their "equity<\/em>."<\/p>\n

The type of equity that I'm referring to is the kind in which you can sell something that you own<\/strong>, for cash. Like a business.<\/strong><\/p>\n


Starting at zero<\/span><\/p>\n

That's what you start at when you're investing in a start-up franchise of you're own. Zero. Until your loan debt is paid off, and you're breaking even with regards to your total up-front investment, you have no equity.<\/p>\n

It takes years to build equity in a start-up business, of any type.<\/p>\n

It will take lots of really hard work, and lots of revenue!<\/p>\n


What will you do with all of your equity?<\/span><\/p>\n

I know what you'll do with all of your job equity<\/em>. You'll try<\/em> to make all of your wonderful equity<\/span> severance last until you find your next great, secure job. Enjoy.<\/p>\n

When you've had a successful franchise operation going for a period of time, and you've paid off all of your loans, you have entered into the world of business equity. You can;<\/p>\n<\/p>\n