When you’re investigating franchises, it’s tempting to just dig in. Digging in usually means spending a lot of time on franchise websites like this one, searching for a great franchise or two to learn more about. And, that’s fine. But, eventually, you’re going to have to see what you can afford, and it’s best to do that before you start digging around.
Investing in a franchise is not like investing in the stock market. For example, when you buy an individual stock, the more shares you purchase up front, the bigger the potential payoff. Of course, the more shares you buy, the more money you can lose, too.
When you buy a franchise, (except when it’s a Master Franchise) the amount you invest doesn’t usually have a direct bearing on what your potential earnings will be. In other words, Another words, there’s no automatic correlation between what you invest in a start-up franchise, and what type of profits you can expect to make.
Now that you know that, it’s time for you to sit down at your kitchen table-so you can figure out where you stand, financially.
If you’d like to learn how to do a net worth statement, check out this franchise net worth article from SBA.Gov.
Here’s another place to do your calculations.
Here’s the AARP net worth calculator.
Now you can find out where you’re at.
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