First, assess the new franchise business and make sure it’s in line with your personal goals. The bulk of our time is taken up at work so it might as well allow us the benefit of providing for us personally. Regardless of whether you have a job or choose to go into business for yourself, these are merely vehicles to allow you to achieve your life’s goals.
If the franchise business doesn’t or can’t match your personal goals then stay away. A good example of this would be a retiring, overworked and tired executive who wants to spend time with their grandchildren. But instead they buy into an 18 hour, 24 day retail business. It is flawed to start off with. Make sure the business you choose is aligned to your personal goals and has the potential to be the vehicle to achieve them.
The next step is to decide what your financial expectations are. Many new business owners take the wait and see approach where they will sacrifice personal income in the beginning and hope that it will improve later. This is very noble indeed and not necessarily incorrect to sacrifice upfront.
However, there needs to be a financial target that you’re aiming for. This target should also include a remuneration amount for the actual time and work you’ll be putting in (ie your salary) as well as a reasonable return on investment for the business based on your contribution and risk. You could take your savings and put it into other investments. So if you decide to invest in a business it needs to provide a financial return to you, in addition to your salary.