Recent reports indicate a growing number of Canadians, especially millennials, are turning to franchises as a means to earn income and prepare for the future.
Many Canadians are choosing the franchise business model because it offers the opportunity to invest in a company that is already established. Interesting to note: while the franchise model is growing in popularity, so to are distributorships, which, like franchises, allow individuals to be their own boss. In fact, many entrepreneurs and business owners are realizing that distributorships offer more benefits than franchises. More to come on that.
Torontonian Jose Miguel Aguila was 24 when he decided to open his first Booster Juice location. Booster Juice sells smoothies and specialty fruit drinks, as well as sandwiches and snacks, to customers throughout Canada. Upon his store opening, Jose Aguila’s first Booster Juice location experienced almost immediate success and spurred the young man to open two more locations in the Toronto area. He told The Province (http://www.theprovince.com/business/millennial+entrepreneurs+turning+franchises+tough+market/11431170/story.html) , an online website featuring news from Ontario, that he wanted to put his accounting degree to work and get a taste of the business world with a proven concept. “You’ve got sales from Day 1,” he added. http://www.theprovince.com/business/millennial+entrepreneurs+turning+franchises+tough+market/11431170/story.html
On the other end of the age spectrum, Baby Boomers and those nearing retirement have begun to look at franchises as retirement investment tools that will bolster their retirement fund and provide income well into their golden years. A recent TD Canada Trust survey revealed that 54% of Baby Boomers polled have or are considering starting a business, from consulting firms to buying a franchise. http://business.financialpost.com/entrepreneur/why-baby-boomers-are-making-franchises-a-part-of-their-retirement-plans
“One of the reasons we began looking at franchising was to build a business and eventually sell it,” Jerome Pulcine, 57, told the Financial Post, describing his journey of choosing the right business for him and his wife to open. http://business.financialpost.com/entrepreneur/why-baby-boomers-are-making-franchises-a-part-of-their-retirement-plans
As mentioned earlier, an alternative to franchising that is growing in popularity are distributorships. Distributorships provide many of the same freedoms and benefits as franchises, without the costly overhead and often very high initial investment. Choosing to be a distributor of an established business also happens to be less risky than owning one’s own franchise.
BeTheBoss.ca is a helpful resource to learn more about franchise and distributorship opportunities available to Canadians. The website lists more than 200 businesses and, what’s more, provides free educational and informational seminars. http://www.betheboss.ca/
MTI Magnolia Telecom is one example of an established Canadian company that offers distributorship opportunities in the telecommunications and digital telephone industry. Choosing to become a distributor with MTI Magnolia Telecom provides those who are interested flexible job schedules and a consistent revenue stream that can be generated while working from home. Moreover, MTI Magnolia Telecom distributors face none of the complex agreements or management requirements and none of the reporting and accounting costs commonly associated with franchises. https://about.me/mtimagnoliatelecom
Phone card distribution, a main line of business for MTI Magnolia Telecom distributors, is especially appealing to those interested in the vending machine business. After all, MTI Magnolia Telecom phone cards are easy to stock and require no upfront fees or expensive inventory costs. What’s more, there is no brick and mortar stores to build or complicated franchise regulations to adhere to. https://www.linkedin.com/company/mti-magnolia-telecom-inc-
Selecting which type of business opportunity is right for you depends on a variety of factors. How involved do you want to be? What is your level of commitment? How much are you looking to invest?
Choosing to franchise a Tim Hortons or McDonalds, for example, will require a very large initial investment and a lot of time. On the other hand, becoming a distributor for companies like MTI Magnolia Telecom requires a much smaller capital investment and much less commitment than franchising.
Becoming a self sufficient entrepreneur is becoming increasingly attractive as more Canadians take the leap and go into business for themselves. Choosing the type of business you start is dependent on a number of factors, and distributorships are a good way to get a taste of business on your own while also having a safety net of experienced guidance to fall back on.