Lately, I’ve been coming across quite a few recent college grads who’ve decided to bypass the typical corporate career track and open up their own businesses. Well, it’s not quite fully their own businesses. These men and women have opted to buy franchise operations. I write about this franchising phenomenon in the New York Times today.
I hope you guys with newly minted diplomas don’t run out right a way and invest in your own franchise before doing some homework. Franchise operations aren’t cheap, they can range from high five to six figures. And they’re anything but easy to operate. While you do get lots of help from the franchisor (the company that owns the franchise operation) you still have to put in lots of blood, sweat and tears to make it work.
But, if you’re not sure of your career direction, and you think you have the heart of an entrepreneur but aren’t ready to launch your own business, franchising might offer an interesting opportunity.
Just watch out mom and dad. Don’t just clean out your savings to give junior a store to run. They have to feel they have something vested in it. It’s not just like paying for piano lessons they never use.
July 26th, 2007 at 12:26 pm
Eve,
I work two doors down from Bob Justis, and I loved the article on franchising as an option to going to work for THE MAN! I teach Entrepreneurship to students at LSU for just that reason - I want them to understand that opening their own business is just as viable a career option as working for the corporate giant. I’ve had several students who did go to work for the “giant” email me wondering what they have done to their lives! They are miserable and want to get out of the rat race and start a business.
FYI - I also have a program I started at LSU to help women with gender specific issues they face when they start businesses; we discuss these issues along with teaching the basics of business startup. I’m committed to helping women learn how to do this…it’s the only way we are going to get women off the bottom of the pile when it comes to minimum wage jobs and the continuing cycle of poverty.
I’m so thrilled to have discovered your blog…
Carol
July 28th, 2007 at 1:15 pm
first, i think too many people start a franchise as a way to make money and not work. they do not realize at first that being your own boss is more work than working for the MAN.
second, seems to me that the MAN is the one making poverty run so rampant today. HE makes $1,000 an hour, but only pays $7.50 and hour to the one actually doing the work. Back in the days before Corp, when it was just mom and pop stores, it seems that the pay was more equal and the work more equally divided.
and also, go to any bank/credit union to get financing for a franchise. if you are a single mom with two kids, chances are you wont get financed. the people that really want to work, are willing to work hard, trying to make thier life better, cant.
July 29th, 2007 at 7:10 pm
I think there’s something to that. A kid coming out of college, with parents to back them up, probably can get a loan easier.