For every person you know who has gone into business for themselves, they could probably list at least five people in their close circle who told them not to do it. After all, if entrepreneurship was easy – then everyone would do it! However, like any big decision in life, there are risks associated with leaping. Consider this quote from Theodore Roosevelt, famously titled his “The Man in the Arena” speech, which accurately captures the feeling of stepping into the arena of entrepreneurship:

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

The critic, or voyeur, in the stands will easily point out all the reasons why a man or woman should not enter the arena to begin with. After all, it’s safer to judge from the stands! Teddy’s point, however, is that only if you are in the arena can you know triumph – and that even if you get dirty and bloodied, you have achieved more than those who didn’t dare to leave their seats.

The Mental Battle: Putting Negative Talk into Context

Worst-Case Scenario Stories

We often hear from potential franchise owners that their cousin’s neighbor’s best friend invested in a franchise and lost all of their money (or someone like that). No matter what type of business you decide to start, everyone knows someone who failed and the blowback was catastrophic. While these stories may not be false (albeit likely dramatized), they require an understanding of the context in which they are told. For every person who shares a horror story, determine if they can answer the following questions:

  • What type of model were they operating within?
  • Did they have built-in support systems?
  • Did they actually follow the model?

No decision in life can be 100% risk free (and if someone says it is, they’re trying to sell you something). However, a proven system with a historical track record lessens the risk that you are likely to encounter. After all, not all franchise models are built equally. Be careful to not compare apples to oranges.

Financial Risks

While unsolicited stories of woe are a common distraction for those entertaining the idea of business ownership, the largest mental battle is perhaps the financial risk. Especially in a franchise model where investment is required to begin the process, many franchise owners battle with the question of, “What if it’s not successful?” Not only are they losing money, but they are letting down their families who might depend on them for this business to be successful. Unlike a standard corporate job, where many of our Master Franchise Owners hold tenure, there is no immediate paycheck or “success” while building the business. It requires a mental shift of first, patience. And second, trusting the system.

The Learning Curve: Shifting from a Corporate Model to a Franchise Model

From Delegation to Personal Accountability

 Once you’ve tamed the negative thoughts, an additional mindset shift will need to happen before you make the leap into entrepreneurship, especially in a franchise model. For our Master Franchise Owners, there is a common struggle with the loss of their corporate infrastructure. In a corporate role, especially in leadership, there are teams to delegate to and entire departments that handle specific areas of the business. Human Resources brings in job candidates, Finance handles invoices, etc. As the business owner, you become all of the departments. Understanding what your new role as a business owner will require of you – and if you are up to meeting that challenge – is an important distinction between those who will be successful at running a franchise and those who should remain in a more structured corporate environment.

The Openness to be a Blank Slate

While you have a career full of wins and proven strategies that can certainly help you as you navigate future hurdles in the business, we have seen the most successful Master Franchise Owners clear their minds of “what has worked” in a corporate role. While you can – and should – bring your years of experience, this is a mindset shift that can be difficult. Buying into a franchise is buying into a system, and it can be difficult for business leaders to wipe the slate clean so to speak and learn a different way of doing business. For many franchise owners, power comes in humility and listening to peers who have been a part of the model and built success upon it.

The Timeline for Success

Many owners don’t walk away from their franchise (more on that in a moment), but they can struggle with the building period that is required no matter which system they join or how dedicated they are to being open to the process. Typically, franchise systems are built around a 12-month success plan. Meaning, a franchise will begin to break even and move into the black around their one-year anniversary.

The Federal Trade Commission (FTC) recommends planning for up to two years of operational costs and personal expenses that will need to be covered while you are building the business. Yes, building a book of business takes time, but it’s similar to pushing a rock down a hill. Once you pick up momentum, and that momentum builds over time your recurring revenue will drive your scalability.

Finally, it’s important to remember that this isn’t just “another job.” Entrepreneurship is an investment. And while people leave jobs, they have a much harder time walking away from an investment. The franchise model fosters accountability and a long-term commitment, so remember that while it may be uncomfortable standing in the arena while you work on your business, it’s the natural cycle of building a legacy. As Vince Lombardi famously said, “The only place where success comes before work is in the dictionary.”

Stepping into the Arena

Success in franchising comes from commitment, trust, and persistence. It’s important to remember that every successful entrepreneur has encountered resistance whether from their own inner voice or from the “critics in the stands.” With franchise ownership, you have several key characteristics of a model that set you up for future success as long as you stick with it. This includes a structured support system, a roadmap well-traveled by your peers and a model refined over decades. While other business owners may struggle to determine the right equation for profitability and remain in the red for years longer than they should, franchise owners typically see success sooner – especially once they trust the process.

No matter which path you take, throughout your career there will continue to be critics in the stands and stories of someone’s cousin’s neighbor’s best friend who lost their entire savings because of one bad business decision. These stories are as old as time, but they do not have to be your story. With a proven method and a collective of experience and support, with the right mindset, it’s not a matter of if, it’s a matter of when you’ll reach your goals.

So what’s it going to be? Stay in the stands or step into the arena?