Semi Absentee Ownership

SEMI-ABSENTEE OWNERSHIP

Why it might be right for you.

by Rick Morgin

Semi-absentee ownership is a great way to own a franchisewithout having it take over your whole life. As a semi-absentee owner, you’re relieved of the day-to-day operations and can focuson big-picture responsibilities: marketing, online efforts, andfinancials, to name a few. Your business runs under the directionof a highly trained, professional manager.

This type of ownership is ideal for anyone who wants to keep her corporate career and simultaneously build an asset. It you’re looking to transition away from corporate life slowly, semi-absentee ownership can be a great option. It lets you invest in something and still have the security of a regular job.

Corporate executives who want to diversify their portfolios benefit from this type of ownership as do stay-athome parents who want to get back into the workforce and still have flexibility. Semi-retired professionals prefer semi-absentee ownership because it allows them to participate in their usual activities. Private equity firms also have the infrastructure in place to run and grow the business.

How it Works Industries where semi-absentee ownership works best are essential services like haircare and beauty, simple or complex retail, fitness, therapeutic massage, automotive, specialty food, and healthand-wellness centers. Any business that can be staffed by people who are trained or certified lends itself to semi-absentee ownership. These owners often opt for multi-unit ownership.

As a semi-absentee owner, you work “on” the business, not “in” the business, which allows you to control your schedule. Figure putting in about 10 to 20 hours a week. Managerial skills like leadership, communication, and organization are very important. Your primary focus is on setting the tone of your company culture, starting with hiring the right manager. Having the right people in place helps you build equity and income.

As attractive as semi-absentee ownership sounds, it’s not for everyone. Semi-absentee ownership may mean investing enough capital to open multiple units or acquire larger territory. You will also need to have a well-paying career, one where you can meet your personal obligations while you ramp up your business. Also, you should be able to delegate and step back so someone else can run your day-to-day operations.

As with anything, when you start something new understanding the learning curve ahead can only help. At the start, you will probably spend more time on the business to get your arms wrapped around guiding your operation. Once you feel you are in control and things have settled down, you will find the balance you want and the ability to make a smooth transition to your new career.

Rick Morgin is an experienced and trusted finance and business development executive with success in increasing profitability and improving business processes. Contact him at rick@thefranchiseconsultingcompany.com