Owning a franchise is hugely rewarding, but the pathway to success looks a little different for everyone. Depending on the type of franchise, the amount of capital you’re willing to invest, and your own personal motivators, the role you play in your new business could look quite a bit different than another franchise owner. It begs the question: Is either the role of owner-operator or absentee owner a better fit for you?
Owner-Operator vs. Absentee Owner
Before understanding which option is right for you, you have to understand the key differences between these two roles.
Owner-operators are fairly straightforward. These are the people who both own the franchise but also take part in the day-to-day operations. This means, if you’re an owner-operator of a cleaning franchise, you are likely the one doing the cleaning instead of a team.
An absentee owner is more removed from the daily grind. This person works more on top-level growth rather than in the business. If you are an absentee owner, you must hire a manager who can step in as the operator in your absence.
Even if you’re clear on the definition of each, you still might not be sure what role is right for you. Here are three considerations to take into account as you decide.
Can You Standardize Your Operations?
Before you can know whether the option to take an absentee role is available, you have to consider the type of franchise you’ll start. For example, coffee franchises are often easily managed from a distance, whereas a consulting franchise, like BCM Franchise is not.
Look carefully at what is involved when you start your business. If you can standardize your operations, you’ll have the option to take a more hands off approach. If not, you won’t have a choice and will have to assume the role as owner-operator.
How Much Can You Afford to Pay Your Employees?
If you’re an absentee owner, you’ll have to pay someone to fill the role of operator in your absence. This can come at a hefty price tag, depending on the type of franchise you open.
Payroll costs can spike quickly if you’re not careful. Look carefully at the amount of capital you’ll need to start your franchise. Do you have the budget for additional staff members? More importantly, do you have the budget for a manager who will provide the type of customer care that you would if you were in the role? If so, you have the option to be an absentee owner.
Do You Have a Passion for the Clientele?
Ultimately, you have to decide why you started the franchise. Was it out of a passion for the clientele that you’ll attract? Or was it to work behind the scenes to build a successful business? Owner-Operators are able to reap the benefits of helping their clients while also enjoying life as a business owner. Absentee owners are better able to stay away from working with the public and focus solely on building the business.
There’s no right or wrong answer here. It’s up to you to dig deep internally and decide what you’ll ultimately be the happiest doing.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.