Comparing the average amount and likelihood of annual raises and commission boosts at a traditional “job” to the financial benefits of franchise ownership.
Written by Matt Lucas, Co-Founder of The Franchising Company
In the traditional workplace setting, the prospect of getting a raise can be quite challenging for many employees. Factors such as company budget constraints, market conditions, and individual performance evaluations can all play a role in determining whether a raise is granted. This can lead to limited income potential for employees who rely solely on salary increases as a means of boosting their earnings.
As a positive example, let’s assume you make a $100,000 per year salary, and achieve a high, but not beyond average, 5% annual raise. That equates to an extra $5,000 per year, or $416 a month before taxes. After 10 years in this position, your income will have increased by a total of just over 50% to around $162,000. Assuming you received a 5% raise every year for 10 years without experiencing any downsizing or layoffs. Again, this is a very positive example. More than likely you’d experience at least a few years of no raise at all, a smaller raise, or potentially even promotions with no raise but other perks or benefits.
Let’s now assume you’re in a little bit more lucrative career such as sales, where you don’t rely on a salary and can help boost your pay with your own performance. Work harder, sell more. If you average $200,000 per year in this sales position, it is safe for you to assume that any pay increase (outside of the minimal annual boost to your salary or commission structure) is a direct result of you working “harder.” More work, more hours, more travel, more investment of time or money in what you do to make more. So, in this example you are potentially able to make substantially more, but at what cost to your personal life?
Whether you’re an hourly employee, a salary employee, a top-level executive, or a successful sales representative, your income has one thing in common – it is limited by the ceiling your employer creates.
On the other hand, becoming an entrepreneur offers you truly unlimited income potential. The only ceiling is the one you create. Read that again if you need to, to let it sink in. As an entrepreneur, your income is only limited by whatever constraints YOU create.
Owning a franchise business in particular presents a unique opportunity to increase your income in a dynamic way with typically less risk than starting your own company from scratch. By becoming a franchise owner, you have the chance to take control of your financial future and potentially earn more money than you ever could in a traditional job. Franchise ownership allows for greater flexibility and autonomy in decision-making, as well as the opportunity to tap into a proven business model with established brand recognition.
While the path to franchise ownership requires an initial investment and hard work to establish and grow the business, the potential rewards can be significant. Franchise owners are able to scale their earnings based on their efforts and the success of their business, offering a more direct and potentially lucrative path to increasing income. Franchise business owners are also able to scale themselves out of the day to day of their business to open even more territories or businesses – building an empire and creating generational wealth.
The only way to achieve unlimited income potential is to put yourself in the driver’s seat.
While a “job” may feel comfortable, and you may not be able to imagine a career without a “promised paycheck,” if you allow yourself to be uncomfortable temporarily, you can change the entire path of your financial future.
This doesn’t mean decide to buy a franchise, go all-in, quit your job, and cross your fingers. You must develop a plan with measurable goals. Researching franchises that are a good fit for your investment dollars, skills, and passion, while also analyzing the possible returns to see if it is a fit financially is paramount.
The great news here – you don’t have to do that research alone. There is an entire field of professionals out there waiting to help you secure a franchise. They are trained to find the good franchises. They are trained to help you understand your current financial situation, and to help you set financial expectations. Best part – they do this at no cost to you! These individuals are called Franchise Consultants. Yours truly, the author of this article, also happens to be a Franchise Consultant.
Prior to becoming a Franchise Consultant, I held many hourly and salaried jobs. Some, more lucrative than others. I quickly realized, in my early 20’s that I wanted more. I wanted to be an entrepreneur. So, I explored franchising. I found the perfect franchise fit for me. I worked hard and grew that franchise. I secured more territories. Then I decided to sell my franchises to start my own business from scratch. I did this and scaled it, and decided it was a perfect company to franchise. So, I did that. Then I sold those. While waiting to start my next opportunity, I found my passion in helping people like you become entrepreneurs.
You can learn more about my franchising story here in this recent article in Authority Magazine.
You can learn more about one of my current companies, The Franchising Company, at my website.
You can follow me on social media like LinkedIn, Facebook, or YouTube to learn about franchisors, franchisees, and franchising in general. @TheFranchisingCompany
You don’t have to contact me to learn about becoming a franchise business owner – but I implore you to explore it somewhere. Your future self will thank you!
Cheers to a great entrepreneurial journey!
– Matt Lucas
Matt & Jennifer Lucas are Co-Founders of The Franchising Company. They’ve been helping aspiring entrepreneurs find and buy the perfect franchise business for a decade. They know the franchise industry inside and out; they’ve owned franchises, and they’ve even started their own businesses and franchised those. As Franchise Consultants, or Franchise Coaches, they help entrepreneurs not just find a franchise, but match their personal passion and goals with a franchise business, giving them the best opportunity for success. They help dozens of people a month navigate the entire franchise journey. Their proven process streamlines opportunity discovery, saves time, and helps entrepreneurs avoid pitfalls, frustration, disappointment, and potential failure. Best of all, their services are completely free, and they’re always sharing insider information, and helping entrepreneurs network so they can make smart decisions about their new business!