A recent survey reported that nearly two in five US adults have a side hustle, finding ways to generate additional income outside of their nine-to-five role. For some, having a way of making some extra cash might be an absolute necessity, with most of us facing increasing financial pressures in the current economic climate. For some it might be a way of developing a hobby or passion into a money-generating activity, and possibly dipping a toe into the water and building skills and confidence before embarking on complete change of direction. And particularly amongst younger Americans, where one in two Gen-Zers (aged 26 and under) and fifty percent of millennials (aged 27 to 42) are reported to have a side hustle, it can be a way of trying to establish a firmer financial footing for the future, when days of a “job for life” are long gone and the risk of corporate redundancy and job uncertainty can be a real concern.
Whatever the scenario, franchising can offer an attractive option for an individual looking to get in on the side hustle act. There’s a common misconception that a franchise must be expensive and requires a full time commitment. However there are many low cost franchise opportunities available which can be run on a part time or semi absentee basis and which can offer the ability to be up and running and generating an income from the business pretty quickly indeed. Whilst buying a franchise cannot guarantee business success, when you take on a franchise business all of the hard work has already been done to set up the brand and product/service, systems and procedures are already in place and you’re investing in a tried and tested business model.
Another advantage of taking on a franchise business as a side hustle is the support that should come as part and parcel of being part of a good franchise brand. If you are running your side enterprise alongside a full time role as well as juggling the other demands of life, family and home then having the franchisor and wider team on hand to help advise when issues occur and to be able to provide a quick answer to queries is an invaluable asset when time is precious, and time is money.
There are some factors to give careful consideration to when considering investing in a franchise business to run it as a side hustle, just as when setting up any business venture.
Firstly, finding a franchise side hustle that appeals to your personality, interests and passions is generally wise. Adding an extra business venture into the mix alongside everything else is means there will be undoubtedly pressures of time – and stress at times too. Ensuring that your franchise side hustle is something that you are passionate about will make spending that extra time outside of your usual job on the business a much more attractive proposition.
The second consideration is the nature of the franchise model. If you are looking to run the business yourself, will the days and hours that the business needs to be operational fit in with your employed role, especially if that role is a traditional nine to five job? Instead of being something you own and run yourself, can the franchise be set up in such a way whereby you can be semi absent from the business and have staff in to run it on a day to day basis whilst you are just involved at the top level? Or is it the case that the franchisee can be fully absent, employing a management team to run the business which then effectively generates a passive income. Whatever your plan, it’s important to be open and honest with the franchisor about your intention for the business, the role you need to take and the time you can devote to it, and to ensure that there is nothing within the franchise agreement that will prevent you from operating the business in the way that you wish and running it alongside your employment. Equally, if you are employed already, make sure that you check your contract of employment carefully to make sure that there is nothing within it to restrict you from having a side hustle.
Thirdly, the figures need to stack up – for obvious reasons! A franchise side hustle is inevitably going to require investment both in financial terms and in time and effort. It is likely to involve some sacrifice in terms of taking up free time or family time. If you’re going to be operating the franchise on a part time basis, or employ staff to run or even manage the full franchise, the return on investment needs to make it worthwhile.
Whatever your motivation or long term plan, the right franchise opportunity can offer up the potential of a successful side hustle and can have significant advantages over setting up a venture independently. However just like any business venture, it will require work and commitment to ensure its success.
Read the full article here
