How to Build Your Long-Term Wealth through a Side...
Transcript of How to Build Your Long-Term Wealth through a Side...
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How to Build Your
Long-Term Wealth
through a Side Business
Pete Gilfillan
Entrepreneur, Franchise Consultant,
International Bestselling Author of HIRE
YOURSELF and Happy Corporate Escapee
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My Story
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My MissionHelp corporate executives take control of their destiny, build wealth
and live life on their terms3
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You are in the right place if you want to keep your executive position while also….
• Creating a supplemental income• Setting up career and income security• Building wealth• Planning the next phase your life/career
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Keep your corporate job while starting a semi-absentee franchise business
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What is semi-absentee franchise ownership
Franchise ownership where you work “On” the business versus work “In” the business. You set the overall direction and make the key decisions while oversee a manager that manages the business
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Growing movement…..
to build wealth versus buying a job
the experience gained in the
corporate career
assets and income next phase of career / life
Investing in franchise Leveraging Diversify Setting-Up
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Motivations to keep full time corporate job and invest in semi-absentee franchise ownership
Defining the 8 D’s
DisenfranchisedFolks who are losing faith or interest in the company they work for
DrivenPeople who feel a strong desire to take more control of their professional fate
Self-DeterminedPeople who want to transition from employment to entrepreneurship
Desiring Supplemental IncomePeople who seek to create a secondary income stream
DiversifyingPeople looking for an investment that will become a significant asset over time
Designing a RetirementPeople who are looking for a way to build a cash-positive retirement—at any age
Drained(or you might call them Desperate)
People who feel their careers have become A) stagnant or B) insecure and need to do something about it.
Destined to Move OnThese are people who play roles that inevitably come to a natural end
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www.execunet.com/HIREYOURSELFConfidential and proprietary. For internal training purposes only. Not for external use.
What Candidates Are Saying…
My company wasacquired and my position
was eliminated
I am tired of working hard so the company receives all
financial benefits
I am looking to create career and income security
The corporate bureaucracy and politics are getting old
I want to keep my corporate income while diversifying my income and assets
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A new CEO was hired and he started to bring in his
own leadership team
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Semi-Absentee Franchise Ownership…
What You learn about
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Time Commitments Required
Day and Life of Franchisee
Capital Requirements
Funding Sources
Investment Breakdown
Earning / Income
Traits of Successful Franchisee and Franchisor
Case Study Success Story
How to Find a Franchise Business
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Working “ON” Business
Working “IN” Business
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• Executive semi-absentee franchises will require a lot of time up front while setting up the business (maybe full time).
• Once established and an operating manager(s) has been trained, the owner can transition to the semi-absentee role.
How Much Time?
You can expect a minimum of 15 - 20
Hours a Week
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In Semi-Absentee Franchise Ownership…
Important items to consider when investing
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Running a franchise business will be SIMPLERthan senior level executive roles but it requires a lot of HARD WORK.
You must be a good leader
You must be exceptional with time management
Not all semi-absentee franchise businesses are the same. Ensure that you do your due diligence!
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Rather than spending your day doing the day-to-day work of the business, as a semi-absentee owner, you’ll spend your time focusing on bigger picture issues:
Nature of work?
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Staffing Tracking your numbers
Employee relations
Executive decisions
Marketing and planning oversight
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Capital Requirements
$300,000+
Liquid Capital:
$100,000+
Cash
Stocks
Bonds
Equity in your home (HEL)
Retirement savings (ROBS)
Assets – Liability = NW
Net Worth:
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FDD Item 7
Investment Breakdown
TYPE OF EXPENDITURE AMOUNT
initial Franchise Fee $50,000
Initial Training Program (Fees) 0
Travel and Living Expenses (Training) $1,000 - $3,000
Real Estate/Lease $10,000 - $20,000
Leasehold Improvements $20,000 - $60,000
Insurance $1,000
Equipment $70,000 - $90,000
Pre-Sale Start Up Package $7,000
Inventory Kit $10,000
Utilities Deposits $0 - $1,000
Licenses and Permits $0 - $3,000
Furniture and Fixtures $15,000
Computer System $1,000 - $2,000
Advertising and Marketing $12,000
Shipping $3,000 - $9,000
Installation $4,000
Additional Funds (3 Months) $10,000 - $20,000
TOTAL ESTIMATED INITIAL INVESTMENT $214,000 - $317,000
15All Numbers Provided Fictitious NOT For Investment Decisions
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Net Worth Calculation
Sample Personal
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Cash/Savings $100,000
Stocks/Bonds/Certificates $150,000
Home Market Value $750,000
Retirement (401K) $800,000
Other Real Estate $200,000
Total Assets $2,000,000
Mortgage $400,000
Other Property Debt $100,000
Total Liabilities $500K
Total Net Worth $1,500,000
All Numbers Provided Fictitious NOT For Investment Decisions
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Funding Resources
SBA Loans
Traditional Loans
Franchisor Financing
Home Equity Line (HEL)
Brokerage
Portfolio Line
Retirement Savings
(ROBS)
Outside Investors
Family and Friends
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Leverage Financial Resources - For Multi-Unit Development
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Location 1
Cash
SBA Loan
Location 2
HEL
ROBS
Location 3
ROBS
Convent Loan
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
All Numbers Provided Fictitious NOT For Investment Decisions
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What you earnwith a franchise business depends on you…
Gross Revenue
Net Profits
Net Profit Margin
Total Investment
Annual ROI 30%
18%
$500,000
$90,000
$300,000
All Numbers Provided Fictitious NOT For Investment Decisions
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Leveraging The Semi-Absentee Executive Model Corporate Executive Salary Franchise Profits and Asset Value
Year 1 $200,000 SalaryUNIT 1
$0 Salary
Year 2 $210,000 SalaryUNIT 1
$50,000
UNIT 2:
$0
Year 3 $220,000 SalaryUNIT 1
$100,000
UNIT 2
$50,000
UNIT 3
$0
Year 4 $230,000 SalaryUNIT 1
$125,000
UNIT 2
$75,000
UNIT 3
$50,000
Year 5 and on $240,000 SalaryUNIT 1
$125,000
UNIT 2
$100,000
UNIT 3
$125,000
5-Year Asset
Check:$0 asset value of job
$1,000,000+
Potential Asset Value of 3 Franchise Units
20All Numbers Provided Fictitious NOT for investment decisions
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Beyond 1st unitReceive Franchise Fee Discount
Protect area/timeSet-Up Growth Insurance
ReplaceScale To Replace Corporate Income
MultipleBuild Sellable Asset
Corporate ExperienceLeverage Strong Business Acumen
SupplementalCreate Excellent Supplemental Income
LeaderBuild, Lead, and Mentor Team
FreedomLive Life On Your Terms
8 Reasons To Consider Multi-Unit Franchise Development
Multi-Unit Ownership….Bridge To Escape Corporate World
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Traits of Successful Semi-Absentee Owners
Executive Model Franchising is not for everyone. The strengths you need to be successful at it are a little more nuanced than those for a single unit investment.
People SkillsHIREMANAGELEAD
Outstanding Time Management
Sufficient Assets
Patience and Persistence
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Things To Consider When Investigating Franchisor?
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1Experience of leadership team
2Launch support and training
3Franchisee satisfaction
5Image and reputation
6Size of franchise system
7Up coming concept or established
8 Culture/Feel
9 Marketing model
10 On-going support
11Level assistance with site selection and build out
12Financial strength of franchise company
4Franchisee financial performance
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Case StudyKeith Evans is Managing DirectorOperations and Technology, for McDonnell Investment Management.
Prior to joining McDonnell, he was Chief Information Officer (CIO) and EVP, Operations Support for SP Plus Corporation, providing services in parking, transportation, facility management and event logistics.
Mr. Evans also has a variety of experience in the financial and strategic areas, working both within industry and in various consulting companies.
An Oklahoma native, Mr. Evans holds a B.A. in Quantitative Economics from Stanford University and an M.B.A. from the Kellogg Graduate School of Management at Northwestern University. Mr. Evans invested in his first franchise in September of 2016.
Listen To Keith Success Story https://youtu.be/mK4BZPdfgYE
Keith’s story can be found here
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Control Your Destiny, Build Wealth and Live Life On Your Terms
And here’s the rest of my story
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Old Definition New DefinitionBeing engaged with
purpose and creating an income while living life
on own terms
The action or fact of leaving one's job and
ceasing to work.
RETIREMENT
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100% x 1 = IncomeYou x Job = Income
You have a job
TIME = $No Leverage
You Own A Job
TIME = $No Leverage
1% x 100 IncomeYou x People = Income
You own a system & network people works for you
Network People = Time = $Passive Income
Money Works for You
$$$ = $$$$Money works for you
Do you work for money - Or make your money work for you
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E
S
B
I
Source: Rich dad Poor dad
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Finding A Franchise That Fits You
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Utilize franchise inquiry websites
Example: www.franchisegator.com
Contact franchise companies directly
Example: www.supercuts.com
Leverage franchise consultant (free service)
Example: HIREYOURSELF.com/execunetoffer
Good
Better
Best
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HIRE YOURSELF Investigation Process
CompleteQuestionnaire
Conduct Consultation Call
and Create Model (summary)
Screen Franchise Concepts
–Match Model
Characteristics
Introduction To Franchise Companies and start
investigations
Provide weekly education and
coaching
Provide Resources
Support Decision Making Process
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WANT TO LEARN MORE?PLUS Great Resources
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Questions and Answers
Franchise Consultant
Phone: 855 904-7900
Email: [email protected]
Request Consultation: www.HIREYOURSELF.com/execunetoffer