There is a growing trend in America right now. Young professionals are seeking other options out there as a way to stay employed and grow wealth. One of those avenues is buying franchises.
Let’s be honest about something for a second. It's tough out there, especially for members of Generation Y. Based on recent reports, 1 in 2 college graduates are unemployed or underemployed. The economy isn't getting better, despite what you hear on the news every day. If you do have money saved in the bank, it's not making anything. So you might as well just put it under your mattress. You must find alternative ways to build wealth right now.
If you're like my wife and me, you talk about this kind of stuff constantly. Since we both work and I run my media company on the side, it's difficult finding something to invest in that doesn't require a lot of time. Granted, we could invest in the stock market. However, I really would rather not risk a lot of my money in that casino. When the market crashed in 2008, people lost large percentages of their retirement nest eggs and college savings plans. Why would I even think about risking a large portion of my hard-earned money there?
That is exactly why we are seriously considering buying franchises. There are some franchises that work perfectly for our situation as young professionals. What some companies do is allow franchisees to be "absentee owners" and have a partner or manager handle the day-to-day operations. My wife and I could go to our jobs, work on my media company and still own a franchise. We could check on the place every day or a few times a week. It would still require a time investment, but we could continue at our jobs as our wealth builds.
If this is something you’re interested in, you should check out Entrepreneur magazine’s list of the top 500 franchises. Another great resource is FranchiseHelp.com.
I will leave you with a few other reasons to consider franchises (courtesy of the Bureau of Consumer Protection and EvanCarmichael.com):
- You get to operate your own business.
- You are handed a proven business model and get support from the parent company.
- Your risk investment is reduced because you are associated with an established company and brand name.
- Many franchises require little to no experience because the company will train you. They want you to succeed because then you both make money.
David T. Domzalski is the founder of FinancialBin.com and host of Financial Bin Radio. Make sure to follow him on Twitter @FinancialBin and check out their first book, "Entrepreneur Intervention."