Most people get into franchising with the prospect of becoming their own boss, earning extra income and escaping a 9-5 routine. The beauty of franchise ownership is that you can run your new business part-time and still keep your day job!
However, is it possible to open a franchise while working your full-time job? Keep in mind, this approach isn’t for everyone because it comes with both benefits and limitations.
The Benefits of Owning a Franchise while Still Working
Nothing is guaranteed in the business world. That’s why you may want to maintain your career in the meantime as you begin the process of opening your franchise and growing your business. Most franchises don’t turn a profit for several weeks, if not months.
Keeping your full time position will allow you to have money to tide you over until your business turns a profit. And, it will be helpful to have more income every month from diverse sources.
Spread the Risk
When you leave your job to run your franchise full-time, be cognizant of what you are leaving behind. First, you’re leaving perhaps your only source of income, a regular paycheck. Second, you will be investing your own money and potentially operating on little to no income for an unpredictable amount of time. If your new franchise business doesn’t take off or fails, you will eventually run out of cash without an alternate source of income.
When you keep your day job, you have the comfort of knowing you'll have a steady stream of income as you get your new business up to speed.
Transitioning from a full-time career to franchise or business ownership is going to be more seamless when you maintain your career. This way, you can make the switch from employee to owner when you truly feel ready financially, emotionally and psychologically.
Now, let’s look at the flip side of the coin. Working double-time does have its shortcomings to consider too.
Lack of Time and more Stress
A full-time job is stressful and so is running a business, especially if you are a new business owner. More specifically, when you retain your day job, you will have little time to oversee and take care of your business. Chances are you will end up working the business on weekends and during weeknights. This may cause more stress for you. Eventually, not devoting enough time to developing your franchise on the front end means it will take longer time to get your business off the ground in the long run.
Lack of Motivation
You have to be motivated, passionate and committed to seeing your new business come to fruition. Unfortunately, you will not be inspired enough if your day job consumes all your time and energy. Be honest with yourself about how much energy you have to dedicate to opening your new business.