How many millionaires can you think of? Of those, how many of them have owned and built their own business to become a millionaire? The book The Millionaire Mind by Thomas J. Stanley reports that 2/3 of all millionaires are business owners. Why is that? The simple answer is that businesses have two equity streams. You earn a living with a business just like you do with a job, but you also build equity.
If you have ever looked into purchasing an existing business that is for sale, you will find that it is much more expensive than starting a business from scratch. In fact, one of the franchises that we work with costs around $50,000 to get up and running. By the fifth year in business the average Franchisee is grossing over $600,000 and many of them have hit the million dollar mark. When a Franchisee goes to sell that business, they can charge between half to two times the gross sales. That works out to be $300,000 in the worst case scenario and $1.2 million in the best case, assuming you only make $600,000 per year. That is up to 24 times your original investment, and remember while you were working on your business and building equity, you were also taking a salary. Show me a stock that can give you that kind of return!
There is risk in business just as there is in any other investment. When you consider franchising with the RIGHT franchise system, your risk is dramatically reduced. You will start with the end in mind, and think about what kind of return on your investment you want.
Franchising isn’t a magic pill, but with the right research, hard work and dedication to your system, a positive ROI on your business is absolutely within your reach!
