3 minute read
Semi-Absentee Ownership
Semi-Absentee Ownership
You should be able to articulate your personal and financial goals. Determine if you have 10 to 20 hours per week to spend on the business.
By Rick Morgin A growing trend in franchising is semi-absentee ownership. This is a great way to own a franchise without having it take over your whole life. This addresses the motives of candidates who want to keep their career and build an asset or invest on a larger scale. As a semi-absentee owner, you are relieved of the day-to-day responsibilities, which lets you focus on the big picture of your business and its growth. However, you will need a highly trained, professional manager to run your business.
You may be asking, “who does this model fit?” Corporate executives looking to diversify their portfolio are semiabsentee owners. So are stay-at-home parents looking to get back into the workforce but want to maintain flexibility in their schedule. Semi-retired professionals have considered semi-absentee ownership because it allows them to maintain their current level of activity. Investors are also semi-absentee owners because they have the infrastructure in
place to manage their operations. If you are looking to transition away from your corporate role slowly, semi-absentee ownership can be a great option. HOW IT WORKS: The industries where semi-absentee ownership work best are essential services, fitness, simple or complex retail, professional business services, therapeutic massage, automotive, specialty food, B2B services, and health and wellness centers. Why do these industries fit semi-absentee ownership? Most often they are a storefront business that is manager run. The function of the owner is to be the CEO or general manager of the business. These businesses are staffed by people who are already trained or certified in the industry. The skill set of this type of owner lends to strong multi-unit ownership.
If you are thinking that you fit one of these examples, your next question may be how to operate a business under this premise. You work “on” the business not “in” the business, this allows you to control the hours worked. Skills in leadership and organization are more critical than industry experience for a semi-absentee owner. Your focus is on building equity and residual income. It helps to be able to separate the functions of the owner from the functions of the business. This means that you have little or no interest in the background of the industry. What should you consider before you dive right into semi-absentee franchise ownership? You should be able to articulate your personal and financial goals from this opportunity. Determine if you do have 10 to 20 hours per week to spend on the business. Understand if you really will be comfortable finding a trusted manager who can run the day to day operation. If this is a move to
transition out of Corporate America write into your strategic plan the timeframe to do so.
It is critical for prospective franchisees to understand that where people tend to get into trouble is when they try to turn a business intended to be owner operated and try to turn it into a semi-absentee model. w Feeling Ambitious? If semi-absentee business ownership is of interest, I can help you explore that opportunity. Contact me.
Rick Morgin is a Consultant with The Franchise Consulting Company and alumnus of Santa Clara University. He assists clients with the educational process of researching and selecting available franchise businesses that best suit desired lifestyles and financial goals. The research, qualification, and application service he provides is free; fees are paid by the franchise company when a client opens their business.
For more information, email rick@thefranchiseconsultingcompany.com, call/text (925) 324-6371, or visit www.thefranchiseconsultingcompany.com
