As a veteran who spent six years in the military, I was unsure about my future once I left the service. I wanted to pursue entrepreneurship but needed to figure out where to start.
One path that caught my attention was real estate investing, but after experiencing the market crash of 2008, I realized I wanted a more proven system to guide me.
I began exploring franchising opportunities, looking at companies like Subway and Domino's Pizza. While I loved buying a business with a proven system, I quickly realized that the costs of owning a franchise were high and the potential returns were limited.
Subway franchises cost around $350,000, and Domino's would only consider selling me a franchise if I worked for them for three years.
Instead of investing in a franchise, I decided to focus on developing my skills as an entrepreneur. I took on a job as a door-to-door salesman for Culligan Water, where I learned the most essential skill for any entrepreneur: sales.
Cold calling and door-to-door sales were some of the most challenging ways to sell, but they taught me valuable lessons about pitching a product and connecting with customers.
From my experience exploring franchising opportunities and working as a door-to-door salesman, I learned some important lessons about business opportunities:
🔥 Leverage a proven system: Buying a franchise can be a great way to tap into a proven system, but make sure you choose already successful people. Look for franchise owners who are making good money and have a track record of success.
🔥 Choose the right opportunity: Owning a Subway or Papa John's franchise can be costly, and the opportunity cost of owning a business that ties you down seven days a week can be high. Look for opportunities that offer time, freedom, and flexibility.
🔥 Develop your skills: Sales is one of the most essential skills for any entrepreneur, and practice is the best way to learn. Take on a job that challenges you to sell, whether door-to-door sales or cold calling.
🔥Be aware of hidden costs: Owning a franchise can come with hidden costs, such as high employee turnover rates and low-wage employees. Make sure you're aware of these costs before investing in a franchise.
🔥 Focus on the potential payoff: Investing in a multi-million dollar business can be daunting, but it might be worth it if the potential profit is high. Consider the opportunity cost and weigh the potential risks and rewards before investing.
In conclusion, while buying a franchise can be an attractive way to tap into a proven system, weighing the costs and potential rewards before investing is crucial. Instead, consider developing your skills and focusing on opportunities that offer time, freedom, and flexibility. With the right mindset and approach, anyone can succeed as an entrepreneur.