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\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n
We hear contradicting motivators all the time \u2014 especially <\/i>when it comes to business. As someone who is continually working with professionals who are in points of transition between traditional corporate leadership roles and making the jump to franchise business ownership, one I am all too familiar with goes something like this:<\/p>\n
\u201cThe timing has to be right to start a business\u201d \u2013 versus \u2013 \u201cIt\u2019s never the right time to start a business\u201d<\/p>\n
\u2026what I\u2019ve discovered? These are both true.<\/i> Likely at the same time.<\/p>\n
Let me explain.<\/p>\n
Rather than considering timing to be \u201cright\u201d or \u201cwrong,\u201d dig a little deeper. What if it isn\u2019t that black and white? Rather than placing \u201cright\u201d and \u201cwrong\u201d on two opposing sides of a coin where only one side can be face up at a time, consider placing these two labels on opposite ends of a spectrum. Where do you fall on that spectrum?<\/p>\n
Let\u2019s take a look at 4 \u201ctiming\u201d hang-ups I\u2019ve come across as a franchise consultant over the last 8 years \u2013 some legitimate, and some that are disguised as legitimate, but really aren\u2019t.<\/p>\n Looking to buy a franchise but don\u2019t know where to start? Entrepreneur Franchise Advisors will guide you through the process from start to finish \u2014 for free. Sign up here. <\/i><\/p>\n The promise of money left on the table is enough to make anyone reconsider their timeline.<\/p>\n A franchise candidate I worked with recently found himself in this very position. He was prepared to leave his corporate job, had done the legwork with me to evaluate new brands, was ready to sign the franchise agreement, but also knew he was going to receive a bonus in 3 months.<\/p>\n With the idea that you should never be undercapitalized when starting a business, it does make sense for this to give someone pause.<\/p>\n But it\u2019s important to know your options. This candidate discussed his situation with the franchisor he was planning to sign with, and they worked with him to allow a delayed start. He signed the franchise agreement, was able to maintain his corporate position until the bonus was paid out, all while using those months as a runway to learn the ropes and prepare to launch his new business.<\/p>\n This candidate discovered that there was more than one way to approach franchise ownership that didn\u2019t leave him sitting on his hands for months.<\/p>\n There are no \u201cifs,\u201d \u201cands,\u201d or \u201cbuts\u201d about it \u2014 you need start-up capital to start a business.<\/p>\n Maybe you have the energy, the excitement, and the know-how to be a successful business owner\u2026but you don\u2019t have a cushion. If you find yourself saying \u201cif everything goes perfectly,<\/i> then it will work out,\u201d you need to reconsider. The problem is, it never goes perfectly \u2013 and you must<\/i> factor in the unknown.<\/p>\n For example, in a Franchising Disclosure Document, one of the most important sections is Item 7<\/i> which is the franchisor\u2019s \u201cEstimated Initial Investment\u201d for starting that business.<\/p>\n Most franchisors only include the legally disclosed minimum of 90 days of working capital in this estimate before your business should start turning a profit. But what if your business has a longer ramp-up period? What if you have personal expenses coming up?<\/p>\n Digging into the numbers and validating projected capital requirements with franchisees is vital<\/i>. If you are anticipating big cash outlays on the near horizon (new home, kids going to college, etc), then you also need to factor this into your timing plan.<\/p>\n Business ownership means a large time commitment \u2014 especially upfront.<\/p>\n Maybe you have 3 kids under 5 years old and a partner who is also working full-time. Maybe you\u2019re in the thick of a messy divorce that\u2019s taking up a great deal of personal time. Maybe your kid is getting married, and you have a big time and money expense right around the corner.<\/p>\n Do you realistically have the time to dedicate to a new business?<\/p>\n Now, it is important to evaluate your time based on the opportunity you are considering. NOT all business ownership opportunities are created equal. For example, unlike the Silicon Valley start-up grinder who sacrifices everything and eats gravel for years before their work pays off, franchise business owners are rarely required to make that level of sacrifice.<\/p>\n In franchising, you can keep your house and family, and there is more time flexibility. However, there is<\/i> a major lifestyle shift.<\/p>\n Unlike a corporate role, as a business owner, your personal life and business life HAVE to mix \u2013 there is no 8-5 in franchising. But you can adjust to your new paradigm \u2014 for example, I took my kids to my business and gave them odd jobs to help both my business and family needs.<\/p>\n There will be a transition period where you will have to sacrifice time and energy to see your business succeed. Make sure you have that capacity.<\/p>\n This one\u2019s a doozie, because it isn\u2019t tied to external factors\/circumstances \u2013 this one\u2019s all internal. Look, everyone sees the benefits of being a business owner: autonomy, time freedom, financial security and more meaning. But that\u2019s the easy part. To really achieve these desirable things, you must be willing to bet on yourself.<\/p>\n If you find yourself in a position of waiting for confidence or waiting to feel some \u201cx\u201d factor of preparedness, you\u2019ll be waiting forever \u2014 it\u2019ll never be the right time.<\/p>\n Filter what\u2019s holding you back \u2014 is it a mindset shift? Ego? Identity? Fear? Remember, the most successful business owners and CEOs are constantly doing things that they\u2019ve never done before \u2013 they\u2019re embracing discomfort.<\/p>\n This is where an aspiring entrepreneur needs to take an honest look inward and then take action<\/i>. Once you\u2019ve decided what you want, it\u2019s not about timing; it\u2019s about execution.<\/p>\n Ultimately, there are absolutely no reasons not to jump into business ownership quickly due to timing concerns. But it\u2019s important that you are carefully evaluating these reasons and not allowing temporary timing concerns to lead to a permanent state of inaction.<\/p>\n<\/p><\/div>\n We hear contradicting motivators all the time \u2014 especially <\/i>when it comes to business. As someone who is continually working with professionals who are in points of transition between traditional corporate leadership roles and making the jump to franchise business ownership, one I am all too familiar with goes something like this:<\/p>\n \u201cThe timing has to be right to start a business\u201d \u2013 versus \u2013 \u201cIt\u2019s never the right time to start a business\u201d<\/p>\n \u2026what I\u2019ve discovered? These are both true.<\/i> Likely at the same time.<\/p>\n<\/p><\/div>\n1. Waiting on an upcoming bonus or payout:<\/h2>\n
2. Undercapitalized<\/h2>\n
3. Lack of time capacity<\/h2>\n
4. Not \u201cready\u201d to leave your comfort zone<\/h2>\n
Key Takeaways<\/h2>\n
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