BY BILL BRADLEY, Founder/CEO, America’s Best Franchises
February 7, 2013
About 14% of Americans own their own businesses – but more than half want to. About 61% of all Americans would like to be their own bosses, or have at least thought about starting a business.
That’s Americans from age 40 to age 70. Almost 40% of these people have already started a business, and nearly all have significant work experience.
You might think that younger workers would be less interested in being their own bosses. Not so.
54% of millennials – young adults in their 20s and 30s – want to own their own businesses, with percentages even higher among Hispanic and African Americans in that age group. Only 8% of people in this age group have actually started a business, though.
There are a lot of factors that can keep a young person from going into business. People in this age group are less likely to have significant savings or net worth. They may not have the network or support system that older Americans have, and they almost certainly don’t have the same level of business experience or skills.
In many ways, though, the millennials are at the perfect point in their lives to start a business. They have the energy and optimism to take on big challenges, and often have fewer responsibilities than people in their 40s or 50s. A 29 year old entrepreneur told us that he always encourages people his age to give it a try. “We have less to lose at this age,” he says, “and more time to start over if we fail.”
It’s an encouraging attitude. For many young would-be business owners, though, investing in a franchise is the perfect compromise between being a wage slave and taking a risk on their own business.
What do franchise businesses offer young businesspeople?
- A predictable investment. It can be hard for a young entrepreneur to guess how much money will be needed to start a business, and lack of capital is one of the main reasons for failure among new businesses. Young people may be well placed to find investors among their families if they can come up with a fairly firm figure, and they can more easily get parents to sign on with them if they need some support in the application process. Franchises also may require less initial capital than many independent businesses.
- Support. Without prior business experience, young people are very likely to need support and guidance as they grow their businesses. Everything from hiring people to filing their taxes will be new and uncertain to many younger business owners. Franchises offer a proven product, and may offer tried and true systems that can make the start-up process much easier.
- Name recognition and trust. One of the problems a younger business owner can face is the feeling that they’re untested or inexperienced. As the owner of a well-established franchise, the franchisee inherits some of the trust already associated with a franchise brand. Customers have faith in Maaco or an AAMCO – giving the young owner a chance to earn trust over time.
Why wait? Use our Franchise Bulls-Eye to identify the perfect franchise opportunity for you.
