Absentee ownership of a business . . . sounds intriguing, right? So what do we mean by an absentee, or semi-absentee business? This type of franchise is a business concept that can be run simultaneously with another venture – meaning alongside your career, or another business. We are NOT talking about partial business ownership here. Instead, an absentee ownership franchise will require the same amount of capital, research and investment as a full-time franchise. But once established, owners of absentee franchises usually spend between 10-15 hours a week on the business.
Absentee ownership franchises are structured to run with an owner who is not present. If you are interested in an absentee business, you should be advised to use a career coach. It’s our job to make sure the franchise is set up properly and has the necessary “bones” to work as an absentee business. And we can help you work out your goals and expectations for the business.
Why consider absentee ownership. There are so many reasons why absentee ownership, or semi-absentee ownership, might work for you. One, the business does not devour your time, like a full-time ownership would. Two, it’s a step into franchise ownership that doesn’t cost you your permanent job. It could be a “side job.” Three, you can own an absentee ownership franchise even while you are still building your career. Four, you may want to use a business as an investment strategy and consult your CPA about it being a tax strategy, too! Absentee ownership might just be the right step for you – if you consider the following tips.
Keep it simple. The best absentee ownership businesses are usually the ones that are simple to run. The less complex the business, the better the opportunity for absentee, or semi-absentee, ownership. Look for businesses that can pretty much run on their own. If instead you have to really learn the business before you hand it over – well, it probably won’t work.
Look for systemization. If you’re not there, the best way to run a business is through systems. Look for franchises that have good systems – particularly financial, marketing and some even have HR systems.
Have a strategy. You shouldn’t just open the business and wait for the money to roll in. lf you do, you’re going to be disappointed. Instead, have a basic business plan in place. Follow the plan and stay in control. Adjust it as needed. A good business starts with a rock-solid foundation.
Examples of absentee businesses. Brick and mortar establishments have long been considered good choices for absentee ownership – businesses like hair salons, laundromats, car washes and even liquor stores. But recently, other industries have shown to be successful – such as the fitness, cleaning services and recruiting industries.
Characteristics of a good absentee business owner. Successful absentee owners that I work with seem to have similar thoughts or desires. See if these characteristics sound like you. If so, give me a call at 301-580-4622 or book an appointment with me on my website.
- Risk reducers. For the most part, good absentee business owners like the idea of mitigating their risks. If they can run a business while working, there is something to fall back on!
- Income stream. The absentee model works best when there is income the owner can rely on for a while.
- Ramp-up time. When the owner has a bit of time to ramp up the business and get it off and running efficiently, the business is more likely to be successful.
- A good owner has some flexibility – it can be evenings or weekends – but time that can be spent to manage their new business.
Does absentee ownership sound appealing to you? Let’s talk. There’s no commitment involved. And there is no cost. Let’s just consider the possibility and talk about opportunities that are available. You never know where this can lead! It may be your retirement plan! Please give me a call at 301-580-4622 or book an appointment with me on my website. Know someone who may be interested in business ownership and is up for a call? Please forward this newsletter to them!