Owning a business is a career goal for many of us, and many franchises offer a valuable segue into the entrepreneurial lifestyle. However, becoming a franchise owner is a big career move. While every franchise owner brings his or her own skills and experience to the new business, there are several things new franchisees can do to make the transition from employee to an employer a bit smoother.
Happy Tax values its franchise partners as an integral part of its innovative, customer-centric business model. We provide a suite of tools and opportunities for one-on-one support for our franchise owners to help them succeed. But as always, being a business owner comes with its own obligations and commitments, so every franchise owner should take the proper steps to prepare for their new careers.
Before Buying Into a Franchise
In order to succeed in a competitive marketplace, entrepreneurs must establish a company brand and build a consumer base. These can be monumental hurdles in-and-of themselves, and as a result, many people prefer to buy into an established franchise, like Happy Tax. Franchises are a convenient outlet for individuals who want to start their own businesses, as nearly everything needed to operate a business is provided and a client base has already been established around the franchise brand.
Of course, before buying into a franchise the first question anyone must ask themselves is whether they would rather go at it alone. Buying into a franchise can really accelerate growth and revenue during the start-up phase, but many individuals choose to build their own businesses instead. By doing so, entrepreneurs are afforded full freedom of creating a product or service that is theirs to do with as they see fit. There is no obligation to a franchisor seeking to maintain brand integrity or market share, but taking your own path can come at a cost.
Building your own brand may be a fun idea, but with greater freedom comes greater risk. The franchise terms that every Happy Tax franchise owner must abide by are designed to help them succeed. Fees and royalties are low, and ongoing costs are extremely reasonable. Additionally, Happy Tax helps with national advertising and media presence, as well as offering franchise owners and the ability to build their own customer base around a trusted established brand.
What Comes With Buying into a Franchise
Once you have purchased a franchise from a franchisor like Happy Tax, you have the added benefit of utilizing well-developed corporate resources. This includes the talented professionals who manage regional teams of franchise owners. These experienced business people provide one-on-one consultation and support for new franchise partners as they start up their new businesses. Becoming a Happy Tax franchise owner also connects your existing network with the in-house accounting professionals that work at our corporate headquarters. This allows you to build a business around your existing network without having to learn the agonizing details of domestic tax policy.
Perhaps most importantly, Happy Tax franchisees have the benefit of relying on the Happy Tax brand, which we have worked hard to build over the years. Happy Tax is a customer-service-focused tax planning and preparation business that people can really trust, and our brand has established value. This is very beneficial to every franchisee, as building name recognition for one’s own brand is more often than not cumbersome, time-consuming, and riskier than buying into a Happy Tax franchise.
Crunch the Numbers
There are many preparations to make in starting your career as a franchise owner, and it is always beneficial to weigh the pros and cons of the situation before choosing a direction. For example, how may becoming a franchise owner affect your tax and insurance obligations? Also, while a traditional employee would not have to cover the cost of office supplies or business equipment, a business owner is responsible for bearing these expenses. But fortunately for the entrepreneurial community, it’s not all bad news!
Happy Tax offers franchise owners the unique benefit of being able to work from a home. This means that they can most likely deduct the cost of the space taken up by their business. Even better, they may be able to claim up to $1,500 in rent or mortgage interest, homeowners’ taxes and insurance, and a percentage of utilities and relating to a home office. Franchise owners would be wise to keep careful records of these expenditures, as they can save quite a bit of money during tax season.
Even though Happy Tax offers a super low-cost franchise model that requires no office space and very low overhead, franchisees should be prepared for day-to-day business expenses. Business-related expenses may include business cards, business phones, local promotional materials, transportation, cost of employing freelancers or employees, materials, equipment, and travel expenses related to business. While Happy Tax’s initial franchise fee covers everything you need to get your business starting, these sorts of ongoing expenses can really add up.
At the end of the day, preparing for a new career as a franchise owner should be a lengthy and well-thought-out process. Anyone considering buying into a franchise should consider how becoming a franchise owner would work for them, and exactly what they will need to succeed in their new career. While good franchisors, including Happy Tax, offer a lot of support for new franchise owners, the job comes with a lot of responsibility. As a result, anyone preparing for a new career as a franchise owner should keep in mind that there are many potential options. Every business person must weigh the risks of each option and decide which path is the best fit for their individual careers.