Oftentimes, the lure of owning a business is more about mistaken notions of fast cash and being your own boss, than about hard work and decision-making. Too many failed business owners believe that the biggest advantage of working for themselves is having no boss. Sure it sounds good, but often a would-be entrepreneur isn’t prepared for the rigors of running a business. It takes vision, capital, courage, commitment, and determination to run a business and without those things, many entrepreneurial hopefuls are quickly shut out of the market.

Avoid the misconceptions

The best way to decide if being an entrepreneur is right for you is to take a close and honest look at your motives, and compare them to those of former business owners.  Here are some common misconceptions to avoid:

1. I don’t need a business plan. A new business owner may think that having a solid business plan written down is a waste of time. Hee may fool himself  into thinking that a “mental plan” is enough to get the business started., and this can be a regrettable mistake. Writing a plan down lends mental clarity. It also can show a business owner any missing parts of his plan. For example, a business plan will hone in on exactly how much capital is needed to start up operations, how much is presently exists, and viable options for coming up with the rest. A “mental plan” is much less likely to have all details in place.
2. I have a unique vision. A good idea is not the same thing as a viable business. A potential business owner’s love for a new product doesn’t mean there is a market for it. The simple fact that one person (the would-be business owner) is willing to pay $49.99 for a product, doesn’t mean that other people are. Millions of people have had a great idea but only a few have been able to build a business out a of it.
3. The competition is no problem. Some potential business owners are so focused on the idea of making fast cash that they forget to do their homework. Venture capitalists hear this all the time: “This widget is going to generate money because no one else makes it!” The reality is that if no one else makes it, one of two things is going on: Either the business owner hasn’t really searched hard enough or the product isn’t in demand.
4. I want the satisfaction of owning a business. Ego is another enemy of business ownership. Some owners insist on running the show but have no real idea of how to do it. Successful entrepreneurs stick to what’s best for the business and are willing to defer to more knowledgeable managers when necessary. For them, ego isn’t a part of the equation when dollars are at stake.

Think twice about business ownership

Fast cash and running the show are both nice, but not necessarily the best motivations for starting a business. Much more is involved and potential business owners should sit down and consider their true goals before starting out. Unless you’re prepared to handle the full responsibilities of an entrepreneur, it’s best to keep your day job and leave business ownership to someone else!

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Papa John's and many other U.S. franchises are seeing growth as people take their job security into their own hands. Image from Wikimedia.

The number of consumers using installment loans to fund their own franchise is steadily increasing.  In a market where people are no longer sure of their jobs, many people are venturing into business ownership to build their own futures.  For example, Jon McIntoch of Philadelphia found himself laid off for the fifth time in his 30-year career as a banker.  Rather than leave his future in the hands of others again, he tapped into his 401(k) and opened his own business that provides home health care to those in need.   McIntosh is now one of America’s 1 million, and growing, franchise owners.

Franchises have grown tremendously in the past decade, and have developed new respectability within the job market.  Franchised businesses make up 11 percent of the US private-sector economy and receive 41 percent of retail spending.  Part of their popularity can be attributed to their simple premise. People can be their own bosses, get the training and support they need,  receive financing, and have help with marketing all along the way.  In January of 2009 a Franchise Expo was held in Miami and proved that the franchise business is here to stay.

The growth of the franchise

Steve Olson, publisher of Franchise Update Media Group, stated, that “in recessions, the number of franchises has actually grown faster than it has in good times.”  Between 2001 and 2005, franchises expanded 18 percent in the U.S. and rose to 900,000.

The business sector has also experienced a change in public perception.  In the past, many people equated the word “franchise” with a tacky and unprofessional business.  Those ideas are quickly changing.  Wayne State professor Timothy Bates stated, “There is absolutely no difference in the success rate or longevity of independent entrepreneurs versus franchises.”

New franchise owners

It’s no wonder the economy has given birth to a new generation of franchise owners. Many people have been burned by the recession with lay-offs, pay decreases and losses of home value.  Bates added, “People who have suffered in the economy, which is just about everyone, want to find ways of making themselves immune to future disasters.  They want to take their jobs into their own hands, and franchises can be a safe way to venture into being an entrepreneur, but having a firm plan with full support.”

Consumers are looking to venture into franchises more and more. And with the standard franchise fee being anywhere from $5,000 to $50,000, it’s a reasonable aspiration for many.  Consumers are using installment loans, family loans or traditional bank loans to handle the cost. The return is priceless because it empowers them to know that they have a say in their future.

Businesses of the future

Many experts insist that businesses of the future will be more self-owned.  Trade journalist Olson insists that the “new number of franchises will explode in this recession, provided would-be Subway and U-Haul lot owners can get financing.”

Financing seems to be the biggest deterrent to consumers.  Many are determined to make it work, however.  As Clifford Brant, new Papa John’s Pizza owner, stated, “I will do whatever it takes. I am not going back to being an employee who can lose his job at a moment’s notice again.”

Even if financing options aren’t easily had, consumers will use installment loans  and family help to make their dream of stable employment happen.

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