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Could starting a franchise be the right next step to take after you put a bow on your traditional career life?
For many retirees, the answer to that question is a resounding yes. After all, starting a franchise means you get to continue working on a timeframe that fits your schedule, you get to choose which industry you want to work in, and you can bring in revenue to continue earning after your regular paycheck ends.
While starting a franchise after you retire might sound good on paper, there are a few things to consider before signing on the proverbial dotted line of the franchise agreement.
What Transferrable Skills Do You Already Have?
As someone who has worked throughout your adult life, you’ve been gathering many transferrable skills. These skills include things like leadership, marketing, a healthy network of people in your community, customer service, project management, and so much more.
As you start to look for which franchise feels the most fun and exciting, think about which skills you’d like to transfer from your career life into your franchise ownership journey. These skills need not be your franchise's focus but can help you understand what franchise ownership could look like for you.
For example, suppose you’re excellent at marketing and networking. In that case, you’ll know that you can take on those responsibilities more simply because you already have the skillset, experience, and backing of proven marketing collateral and strategies from your franchise.
How Quickly Will You Scale?
Retirees are often drawn to franchise ownership because of how quickly the franchise can scale. Rather than starting from scratch, retirees lean into franchises because there are already proven systems in place. You’re not reinventing the wheel regarding what a specific business looks like.
This is an important point to consider because it can determine which franchise you choose to open. As you’re reviewing your options for franchise ownership, look at which industries capture your interest and which brands have high awareness that can help you attract customers quickly in your community. That brand awareness can make it easier to scale fast because customers already know the value waiting for them when you open your doors.
How Much Money Are You Able to Invest?
There are upfront costs to starting a franchise. From the franchise fees to the construction and equipment costs, franchise owners must pay to jumpstart their business.
Many retirees have a nest egg of cash from their career days. However, you don’t want to rely on every penny inside your bank account to get your business off the ground. Instead, setting a budget for how much you’ll invest in your new venture will help you stay financially grounded and make operating your business feel less pressure-filled.
How Much Time Are You Able to Invest?
No one should enter a franchise and expect overnight profitability. It takes time to pay back those funds. It depends on how much time you spend working in and on your business.
Retirement years are fun because you get to set your schedule. If you don’t want to work rigorous hours, you may need to invest in more employees to get your business going faster. Or, if you know your business needs to be profitable in the near future, you may need to outline what that looks like in terms of time and capital commitment.
Starting a franchise post-retirement is a rewarding experience. When approached through the right lens and with careful consideration, you can make sound business decisions and further building up your nest egg and legacy for your children.
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.