What's Your Risk Tolerance To Achieve Franchise Success?

In this episode, Rick interviews serial entrepreneur and franchise consultant Meg Schmitz. Meg has a unique background and a great lens on risk tolerance and what you need to achieve success in the franchise business.

The Wall Street Journal nicknamed Meg the franchise guru and the franchise fashionista. She helps people looking for franchise opportunities connect with a franchisor that’s the right fit for them.

A franchise consultant plays a huge role in preparing candidates and introducing them to the franchisor professionally. They also address any questions, concerns, or doubts you may have about entrepreneurship and finding the right franchise concept before you jump from one franchise lily pad to another lily pad.

What’s Your Risk Tolerance Vs Return On Investment (ROI)

When it comes to investing in a fitness franchise, there are many factors to consider in relation to return on investment (ROI). One of the most important of these factors is risk tolerance. Risk tolerance is an individual’s level of comfort with the amount of risk they are willing to take with an investment opportunity. In other words, it is the degree to which an investor is willing to accept losses in pursuit of potential gains.

Before investing in a fitness franchise, it is important to understand your own risk tolerance. Some people may be comfortable taking on high levels of risk for the potential for higher returns, while others may prefer to take on lower levels of risk for more modest returns. It is important to assess your own risk tolerance in order to make an informed decision about which investment opportunity you should pursue.

Risk Tolerance Considerations

1. Are You A Risk Taker?

Are you wired for the risk vs reward process of an entrepreneurial life? What have you done to demonstrate your tolerance for risk? Gauge your fear meter to consider about what challenges you are willing to take on vs your ability to overcome your fears. Are you willing to learn everything you need to become successful in your business? You need to wear a lot of hats as a business owner. Can learn the skills necessary to be successful, including leadership, accountability, structure, and resilience?

2. Are You A Warrior Or A Worrier?

There is a cycle in franchising when you alternate between warrior and worrier. For example, in the beginning of the entrepreneur journey you may be a Warrior, all “gung ho” about becoming an entrepreneur. Then you get involved in day-to-day challenges, you will worry about many aspects of your business. You must be able to get out of the worrier mode. You need to have the fortitude and resilience to cycle back to being a warrior on your own and don’t get stuck in the worrier mode.

3. Do You Have The Fortitude To Overcome Fear & Head Trash?

You will need to have the fortitude to overcome the head trash other people have about your business. You will always have those influencers in your life that will try to force their fears onto you. Be able to identify the things that bring you down and recognize those people that influence you negatively.

Two Misconceptions About Franchising

It’s Not All About Food Franchises – There are many franchise concepts that do not involve fast-food or other food franchises. For example, mental health is on one very successful franchise concept we have right now.
You Don’t Have To Have Alot Of Money – There are many franchise concepts that do not require 6 figure investments. Check out other alternatives for franchises that require lower investments. Also, some may get more from the monthly ongoing fees to help ease the burden of an initial investment. All franchises are not like McDonalds, where a new franchise can expect to shell out between $1,314,500 and $2,306,500.

Meg’s Best Franchise Advice Is To Trust Your Gut

We are all wired for flight or fight. If you feel like it is too good to be true, then it is best to trust your instincts.

Tune in to hear Meg’s story and her unique perspective on business, franchising, and life.

About Meg Schmitz

Meg is a business advisor and a franchise business coach. She offers services to people who are serious about starting a business and following the roadmap to build a strong, durable, and successful business.

Over thirty years ago, she owned a Great Clips franchise in the Greater Chicago area. She ultimately grew from one to five locations in eleven years. She took advantage of all the knowledge available from the corporate office and regional support team. As CEO, her reputation of success grew as her Great Clips franchise achieved steady growth with low turnover. She sold her five-unit business after receiving a fantastic offer. I walked away with generous compensation. She now provides her knowledge to help others learn her lessons from her franchise ownership journey.