Franchises: The Next Generation of Family-Owned Businesses
Submitted by KDelGrande on August 9, 2011 ? 4:02 pm on Franchise Hound
Caf? Staff Serving In Coffee Shop
Franchising has long been a multi-generational affair but in these uncertain economic times even more families are using it to create a secure future for their children, spouses, siblings and extended family members.
Franchising for Family Increasing Across the Country
FranNet, a franchise research and consultancy company, says that there has been a definite increase in the number of ex-corporate employees moving toward a franchise career in order to safeguard their children?s futures.
?It?s happening all over the country,? said Chad Wright, Owner of FranNet Utah. ?Opening a franchise either for your kids or to employ your kids makes a lot of sense in today?s market. The job prospects for senior-level professionals aren?t great. They?re feeling a bit slighted, they know opportunities are slim, and for new graduates, it?s a horrible market.?
Building Confidence in a Family?s Financial Future
And today, investing in a franchise is similar to starting a family-owned business. By investing, parents feel more confident in a business that has already been tested and has the backing of a corporate office. Plus, they have the ability to provide a career to their children when and if they want it.
Donna and Rick Muelver were ahead of the trend. The Muelvers and their three oldest children co-own the family?s Showhomes Home Staging franchise in Southeast Wisconsin. The franchise flourished before the recession and continues to do well.
?We are creating the economic security our children need to function,? Donna Muelver said. ?We all have the drive and determination to make our franchise work. When a job needs to get done, it?s all hands on deck.?
Showhomes Home Staging routinely sees similar success, said Matt Kelton, Chief Operating Officer at Showhomes.
?We certainly see families pulling together and creating success across generations,? Kelton said. ?It may be a frozen job market in the corporate world, but self-employment through the franchising business model is growing.?
Chris Campbell, owner of a Pennsylvania-based Right at Home franchise started his business in order to protect his family?s financial future in the midst of looming layoffs. ?I had been working in pharmaceutical sales for ten years but didn?t find it very rewarding. Our company was facing potential layoffs and I knew that I would probably be on the list of those let go. I didn?t want to put my family?s future in anyone else?s hands any longer.?
The strength of family-owned businesses is well documented. They ?can confer a significant competitive advantage and impress customers, who appreciate knowing they?re dealing with someone who cares deeply, and who has the same surname that?s on the letterhead,? concluded journalist Christine Lagorio in an Inc. magazine tutorial in 2010.
Family-Run or Not ? Franchising is a Smart Career Choice for Many
Many entrepreneurs start businesses to provide for their families in the present and the future. What better way to help your child succeed in life than to hand him the keys to an already-established business. However, family succession plans may not always be the wisest choice. According to the Family Firm Institute trade group, only about 12% of family businesses make it to the third generation with only 3% making it to the fourth generation. In fact, the United States has one of the lowest rates of family business succession in the world.
Investing in a franchise for your family, just like starting your own business, has the potential to not turn out as planned. If opening a franchise for the purpose of passing it along to a child or other family member, you need to consider the possibility that 15 years from now, you may be the only family member interested in running it. The economy changes as does the job market and kids? interests. What may seem like a good career choice today may not later on down the road. Whatever the future may hold for your family-owned franchise, for now it?s a smart and rewarding second career for many.
?I think this represents a cycling back to pre-corporate America, when pretty much everybody was an entrepreneur and family businesses were more desirable than corporate careers,? Wright said. ?We expect this to become a major trend in the decade ahead and it has the potential to reshape career paths for an entire generation.?
Interested in owning your own family business? Start a conversation with us about looking into a franchise opportunity!
man of steel man of steel pauly d pauly d aaliyah jerry lewis coffee shops
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.