The Insecurity of Job Security & Why Franchising
INTERESTING FACTS for those of us Getting Older (45+)
- Increased downsizing for those of us 45+
- Finding Replacement Jobs often takes 2X longer
- Replacement Jobs often = a 20-30% pay cut
- Replacement Jobs last an average of 2.4 years
- AVERAGE PEAK INCOME AGES ARE DROPPING
* MEN: From 57 to now 48
* WOMEN: 39
Greater income potential + greater tax advantages + building protected wealth = Self Employment
Happy Thanksgiving from all of us at Sharkey's Cuts for Kids.
"We have lots to be thankful for this holiday season, says CEO Scott Sharkey. Thanksgiving is a time to give, a time to love, and a time to reflect on the things that matter most in life. Once you start practicing being grateful and thankful for things, people, and events, you may notice that you start to attract more positive things, people, and events in your life. Spend time with your family because in the end that is what matters the most."
Happy Thanksgiving from all of us at Sharkey's Cuts for Kids!
Parents and College Grads Team-up to Pursue Multi-Generational Franchise Ownership
A growing number of Baby Boomer parents and their recent college graduate children are pairing up and entering the franchise world together. "Family franchises" offer easy to follow systems and combine the many benefits of business ownership with a brand name, experience, proven operating system and ongoing guidance and support provided by an established franchisor.
State of the Current Job Market
Although the current economic climate is looking much more promising than it has in years, uncertainty still permeates through the job landscape for millennials. After decades of being told "pursuing education and a college degree would lead to a job -- and, then a successful career" -- millennials are finding themselves without a clearly defined pathway for the first time in years and are being forced to consider alternative opportunities that may help fulfill their dreams.
A recent study conducted by the Associated Press found 53.6 % of those with bachelor's degree under age 25 were jobless or underemployed.
This age group is not alone. The U.S. Bureau of Labor Statistics reports the average length of unemployment for people age 55 has continued to rise over the past year. As the boomer generation enters into a new stage of life and draws closer to retirement, many are realizing they’re not quite ready to give up their passion for business or entrepreneurial dreams. Instead, they’re opting for new ways to invest in their future and are creating a bridge to their retirement years.
The growing epidemic of college graduates that are unemployed, paired with the unwelcoming job market for Baby Boomers, are just some of the factors that are driving these two unlikely demographics to consider entering into business together. Many boomer parents and their millennial children are joining forces in increasing numbers and are often turning to franchise opportunities to invest in -- creating a wide spectrum of new multi-generational owners in franchising today.
Parents have been going into business with their children for decades, but now more than ever are looking at franchise systems as a platform for launching their own multi-generational business. For millennials and boomers alike, franchise systems offer an easy-to-follow proven operating system, a recognized brand and tools, resources and continuing support of the franchisor to launch their own business together.
Honoring familial trust
While partnering with a parent or a child may seem lucrative and convenient, keep in mind that the familial relationship came first and it’s the one that will be there the longest. Before even considering entering into business together, be sure to have an open dialogue about expectations in terms of trust.
Parent-child teams don't necessarily need to be a 50-50 combination. One of the business partners can hold more responsibility than the other to help avoid clashes. It is important that the parent-child pair finds the right concept that enables each partners to utilize their best skills and former experience.
Finding the Franchise Concept that's a Perfect Fit!
Finding the right franchise concept that allows everyone to leverage their skill set is imperative when identifying an opportunity for multi-generational partnership. Even if the parent isn't fully embedded in the business - leaving their children to run the operations - they should still have an interest in the concept and be able to utilize their experience or skills to provide support. When everyone is active in the business, we often find the parents handle jobs requiring local connections while children take care of day-to-day operations and online marketing.
"Investing in technology and making it easier for moms and dads to make appointments is a #1 priority for us at Sharkey's Cuts for Kids."
I find that passive ownership is often the best way for a business owner to transition out of day-to-day operations of their business. To successfully make the move from active to passive ownership takes a fair amount of discipline. In addition, the owner will often have to make significant changes in how they run their business.
There are several positive things that come out of becoming a passive owner. Some of them are:
1. You have a chance to spend time getting used to what your next life will be like after you leave your business.
2. You have the opportunity to pursue other activities outside your business that interest you.
3. You will need to develop dashboards to monitor your business performance. This will force you to focus on the important things in your business.
4. You will need to make yourself operationally irrelevant in your business. Becoming a passive owner will force you to delegate and delegate permanently operational activities you presently do in your business.
5. There is a good chance you will make your business a more attractive asset and move it towards becoming one that has enterprise value.
6. Taking appropriate steps towards passive ownership will often help you make more money.
Successful movement towards a passive ownership strategy forces you to make changes in how you operate your business that taps into the skills of others in your business. Passive ownership forces you to let go and allow others to take a larger role in developing your business.
When you force yourself to put controls in place and give your key people more responsibility you might receive more satisfaction and cash. And, for many owners this is a good goal.
Sharkey's Cuts for Kids & Sharkey's Hair It Is salons are recommended for franchisees who are looking for mostly Passive Ownership with the ability to add multiple locations within a given territory.
Source of Inspiration: "6 Reasons why Passive Ownership Makes Sense" by Josh Patrick
Sharkey's Franchising Co. founded in 2001 by Linda and Scott Sharkey