Hey TarHeel Ilustrated Members!
This month’s post will hopefully shed some light on a franchise ownership model that can fit into many of your current schedules. The model is called semi-absentee. Not every franchisor allows this type of management model and it is definitely not a fit for everyone. Below I am going to give you all a good understanding of what semi-absentee ownership is all about. I hope you all find value.
Semi Absentee Ownership: Run a business working only 5 to 15 hours a week
Are you interested in investing in a side opportunity but not yet ready to leave your current job? Or are you a current business owner wanting to diversify but can’t commit to a full-time role? That’s where the semi-absentee franchise model comes into play. Semi-absentee franchise models are available in both service and brick and mortar but much more prevalent in brick and mortar. Think about Orange Theory, Supercuts, Massage Envy...those are all brick-and-mortar semi-absentee franchises. You typically won’t ever see the owner in those stores.
What is Semi-Absentee Ownership?
In a semi-absentee business, the day-to-day operations are run by a general manager. They hire and manage all other necessary employees and the owner’s role is managing the manager, focusing on KPI’s, business development, and financials. In a semi-absentee business, the owner needs to be able to put up to 20hrs a week (can be off hour/flex time) into the business but can typically expect 5-15hrs being the norm. Once mature, that number can get even lower. For example, my homecare franchise is an owner-operator model that doesn’t allow semi-absentee owners out of the gate. Well, once mature, franchisors are totally fine with it. Today, I work 2-5hrs a week in that business and go to the office 1 time a week for a meeting with my GM. I run my dumpster business and my porta potty business the exact same way.
Benefits of a Semi-Absentee Ownership
Obviously, flexibility of schedule is the biggest benefits of semi-absentee ownership. As a semi-absentee franchisee, your business isn’t controlling much of your schedule, so you can choose to spend that extra time a lot of different ways. Keep your full-time job, spend more time diversifying through other businesses or investments, spend more time with your family, or spend more time on yourself. Point being, semi-absentee ownership provides a killer work/life balance!
Risk of Semi-Absentee Ownership
When you go the semi-absentee path, you are essentially hiring a manager to raise your new baby. So, that manager hire is HUGE!!! In a brick and mortar a GM doesn’t need to be quite as dynamic as in a service business as the B&M models typically don’t have much outside sales/marketing or project management. So, my biggest advice is on the service side…make certain that your GM is going to be a willing sales person. Many managers aren’t sales people so make sure you hire someone that is hungry!
Is a Semi-Absentee Ownership right for me?
Now, that’s the biggest question to tackle. Are you a good fit for semi-absentee ownership? A few important things to evaluate:
If you answered ‘yes’ to all 4 of those questions, semi-absentee ownership could be a great fit for you.
Keep in mind not every franchise offers a semi-absentee ownership model. If you are wanting to know more about what those options are, I am more than happy to talk them through with you!
Thanks, and I hope this was of value to you all.... now back to football!!!
Andy
This month’s post will hopefully shed some light on a franchise ownership model that can fit into many of your current schedules. The model is called semi-absentee. Not every franchisor allows this type of management model and it is definitely not a fit for everyone. Below I am going to give you all a good understanding of what semi-absentee ownership is all about. I hope you all find value.
Semi Absentee Ownership: Run a business working only 5 to 15 hours a week
Are you interested in investing in a side opportunity but not yet ready to leave your current job? Or are you a current business owner wanting to diversify but can’t commit to a full-time role? That’s where the semi-absentee franchise model comes into play. Semi-absentee franchise models are available in both service and brick and mortar but much more prevalent in brick and mortar. Think about Orange Theory, Supercuts, Massage Envy...those are all brick-and-mortar semi-absentee franchises. You typically won’t ever see the owner in those stores.
What is Semi-Absentee Ownership?
In a semi-absentee business, the day-to-day operations are run by a general manager. They hire and manage all other necessary employees and the owner’s role is managing the manager, focusing on KPI’s, business development, and financials. In a semi-absentee business, the owner needs to be able to put up to 20hrs a week (can be off hour/flex time) into the business but can typically expect 5-15hrs being the norm. Once mature, that number can get even lower. For example, my homecare franchise is an owner-operator model that doesn’t allow semi-absentee owners out of the gate. Well, once mature, franchisors are totally fine with it. Today, I work 2-5hrs a week in that business and go to the office 1 time a week for a meeting with my GM. I run my dumpster business and my porta potty business the exact same way.
Benefits of a Semi-Absentee Ownership
Obviously, flexibility of schedule is the biggest benefits of semi-absentee ownership. As a semi-absentee franchisee, your business isn’t controlling much of your schedule, so you can choose to spend that extra time a lot of different ways. Keep your full-time job, spend more time diversifying through other businesses or investments, spend more time with your family, or spend more time on yourself. Point being, semi-absentee ownership provides a killer work/life balance!
Risk of Semi-Absentee Ownership
When you go the semi-absentee path, you are essentially hiring a manager to raise your new baby. So, that manager hire is HUGE!!! In a brick and mortar a GM doesn’t need to be quite as dynamic as in a service business as the B&M models typically don’t have much outside sales/marketing or project management. So, my biggest advice is on the service side…make certain that your GM is going to be a willing sales person. Many managers aren’t sales people so make sure you hire someone that is hungry!
Is a Semi-Absentee Ownership right for me?
Now, that’s the biggest question to tackle. Are you a good fit for semi-absentee ownership? A few important things to evaluate:
- Do you have flexibility in your current schedule to allow for up to 20hrs of work on your franchise?
- Are you comfortable delegating important responsibilities to your employees?
- Are you comfortable buying a business and handing that ‘baby’ over to a manager to raise, so to speak?
- Are you ok paying this person $50k+ in year one and more as the business grows?
If you answered ‘yes’ to all 4 of those questions, semi-absentee ownership could be a great fit for you.
Keep in mind not every franchise offers a semi-absentee ownership model. If you are wanting to know more about what those options are, I am more than happy to talk them through with you!
Thanks, and I hope this was of value to you all.... now back to football!!!
Andy
