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Friday, June 19, 2009

Franchising - Passive Opportunities?

Many of the candidates that I assist as a franchise consultant are looking for a complete overhaul in their professional careers. Some hate their jobs, while others feel they're not compensated at the same level of their performance or for their true worth to the company. Or maybe they're simply not living their passion.

As an example, one individual I worked with was a high level engineer with an electronic firm. In his case, the pay was great, but he came to the point where his job was too much like "work". He wasn't living his true passion, which was fitness. He ultimately purchased a Personal Training and Fitness franchise.

On the other hand, others are perfectly satisfied with their careers, but are looking for an investment vehicle or an opportunity that allows for passive ownership. In essence, they desire the ability to be an absentee owner. There are many very good passive franchise businesses available in a variety of categories. Here are just a few:

Hairstyling. Not to worry, no hair care or styling experience is required. A manager handles the daily operations. This category is perfect for investors who are interested in building a business, not buying a job, by developing multiple locations. This $55 billion industry is both recession and technology resistant with a built in demand: no matter the economy, people still need hair care. Being a passive owner also allows for much more free time to spend with family or on hobbies. If you have strong leadership and people skills and a business background, you may want to look further into this opportunity.

Tanning. A great simple service business, ideal for any sales and marketing savvy entrepreneur. All you really need is a good manager and a few part-time employees. According to Health And Fitness Magazine, more than 1 million people visit tanning salons everyday. Consumers tend to choose inexpensive indulgences during tough economic times making this a great recession resistant franchise. Overall, tanning is dominated by independent operations, and this market is underdeveloped with extreme upside growth potential. Also, the profit margins are great!

Smoothie or Coffee. These are fun, smaller businesses that typically are operated from a fixed retail location or a mobile unit or a combination of both. A simple business with minimal risk, they require a manager and a few part time employees, and a very short ramp up time until profit. They feature low inventory requirements and low overhead to operate. They're a great cash-only business, with huge average margins on sale. Another benefit is the time commitment. It's completely flexible. You can choose to work part time or full time manage it yourself, or choose to be passive and "manage the manager". The coffee and smoothie industries are huge, doing $8 billion and $2 billion per year in sales respectively.

If you enjoy your career, but are looking at franchising as a passive investment, you'll find many sound opportunities at your disposal. Your franchise consultant can help you identify which business model is best for you and your situation.

Cory_Barber

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