Risk vs. Return
A risk is defined as a state of uncertainty where some of the possibilities involve a loss, catastrophe or other undesirable outcomes. A risk is measurable. You can calculate the cost, return on investment and timeline to achieve your objective. As you contemplate this major career change to acquire a franchise, you’ve probably asked yourself, “Can I afford to do this? What if I fail, how long will it take to recover financially? Great resource to read at this juncture is the article “ Can We Afford to Do It?”
In the world of franchising, it’s important to set your budget first, define the ideal characteristics for your perfect business and then investigate ONLY the franchises that match that model. Spending more will not guarantee a more successful or profitable business. In the Get Educated library, there’s a detailed article Risk or Risky – Why Does it Matter? Now would be an excellent time to read that article carefully. Open the calculator app on your smartphone or tablet. Do the math. Own the numbers.
If you haven’t done so before we connect, we will take you through the risk factor exercise on the phone. It’s ideal that your partner, spouse or investor do the same. You both must be on the same page as far as understanding each other’s view of risk.