Listen up, people! It’s time for wealth-building 101. Did you know there are three main kinds of investment options? The first is paper assets (or stocks), then there’s real estate, and finally businesses. There are different risk levels involved with each of these three avenues to revenue. The most successful people in our society generally utilize all three in a diversified and strategic approach to wealth creation, which helps them focus on lowering risk while raising the opportunity for reward.
As you probably know by now, my expertise lies within that last category: businesses. Let’s get down to statistics. Firstly, did you know that two thirds of American Millionaires are business owners? Most of us know of someone who’s created and maintained their wealth from founding their own business, but that can be incredibly risky! The Bureau of Labor Statistics shows that 45% of new businesses fail within the first five years, and 65% fail within 10. Other recent estimates place that number around 90%. Yikes!
Luckily, the stats show that franchises are a much safer option due to the proven business models and level of support offered by the franchising process. The International Franchise Association recently released data stating that 90% of franchisees renew their franchise contract at the end of their first term. Additionally, there is real analysis pointing to the increased success of franchises offering essential services during and after the covid-19 pandemic.
The reason for this staggering difference in risk assessment is simple. As a franchise owner, you will have a team of people surrounding you and supporting your continued achievement every step of the way. After all, your success IS their success. The franchise’s staff will work with and/or for you on marketing, training, research and development, providing back office support and more around the clock. Because they want to help you and the franchise itself succeed, these businesses will offer the exact expertise, business plans, and support that you need to achieve your dreams.
Building wealth is important to us as individuals, but also to the family, friends, community, and world that we impact by our efforts. In order to achieve maximum success we really should have all 3 investment styles working for us, but we don’t have to accept the high levels of risk that accompany starting a business from scratch. In simple terms: work smarter, not harder. Now that you’re armed with knowledge about building wealth the smart way, contact us for more information or to speak with me, a certified franchise professional, today.