In this week’s blog edition, we’re going to tackle the issue of using a franchise or small business to diversify your portfolio of investments. As you’ll see, there are several advantages for doing so, the least of which is the creation of a figurative safety net. This safety net is designed to do two things:

• To prevent the depletion of wealth in the event of a severe downturn in the economy—something we all became familiar with beginning in 2008.
• To provide a fall-back source of income should your current job or position be eliminated.

While signs of recovery continue to aggregate, arming yourself with additional information will be a helpful exercise in diversification.

As an investor, if you have a healthy portfolio, you are always looking for ways to diversify your holdings. Owning a small business or franchise opportunity can be a smart addition which gives you the option to stay engaged in the semi-absentee model of operations while keeping your day job, so to speak. As we have covered before, the semi-absentee model allows you to run the business from afar, typically with a smooth “manage the manager” philosophy.  (more…)

Several economists and financial sources cite that, while things have steadily (albeit slowly) improved, America may be in the midst of a “new normal” in terms of its level of improvement. Suffice to say, very few businesses in corporate America have been able to escape the cycle of downsizing and outsourcing.

Executives previously locked into so-called “safe” environments have found themselves alongside the bevy of recent college graduates—all scouring limited job opportunities rife with qualified candidates. In the most conservative estimate, it is proffered that—at a minimum—there are three candidates for every corporate job opening today. Facts and figures such as these have led to a sea-change in attitude. From those willing to initiate an investigation of small business ownership to the full-on “I can’t take it anymore!” crowd, it seems as if alternatives to working for others have truly been replaced by the attraction of working for themselves.

Of all considerations poured into the discovery and investigation of small business or franchise ownership, what is one of the biggest misconceptions? Money. Specifically, the amount necessary to invest in a worthwhile opportunity that leads to financial independence. Ask most potential prospects and franchise candidates about the capital necessary to invest in their future and you’ll likely hear an astronomical figure that has no real basis in fact.  (more…)