Are you an Execpreneur or Lifepreneur? If so, then Rachel Elnaugh, one of Britain’s high profile female entrepreneurs — who has publicly experienced all the highs and lows that comes with this territory — suggests that these two types of enterpreneurs (see definition below) should seriously consider opting for a franchise instead of taking the plunge with a completely new business.
In an article for The Franchise Magazine, Elnaugh indicates that there are “huge benefits to entering business via the franchise route, particularly if it is someone’s first dip of the toe into what are frequently shark infested entrepreneurial waters. Most people’s business journeys are roller coaster rides, which endure for a lifetime and feature many different projects and ventures over the years. This journey is made a lot easier if they don’t experience a ‘wipe-out’ with their first business.”
‘Execpreneurs’, who are typically emerging from the corporate world where they are used to working within a system and having lots of infrastructure and support;
‘Lifepreneurs’, who want the flexibility of being their own boss but are fairly risk averse and frequently underestimate just how much energy, effort and capital it takes to get a completely new business off the ground.
To find out if you are one of these entrepreneurs, you can take the free entrepreneurial profile test by visit Rachel Elnaugh’s Internet site.
I myself am an execpreneur. No surprise really since much of my professional career was spent working for global professional services firm before I became a franchisee/franchise consultant with the MatchPoint Franchise Consulting Network. Rachel’s top tips for Execpreneurs include:
- Consider creating a business with a small team of colleagues based on the same sector where you have enjoyed corporate success, focussing on a niche in the market currently unexploited (or considered too small) by your current employer.
- Alternatively, look at franchise opportunities which give a measure of business independence within an existing proven operating system and support structure, as your first venture into business.
- Execpreneurs are used to having a budget to operate with, so ensure that the business is properly funded from the outset – and that your level of funding provides for at least a year’s trading before you anticipate coming into profit.
- Expect to run with imperfection in the beginning – it takes time to hone processes, systems and products/services to the point where the business runs like a well oiled machine.
- Don’t be so rigid in your planning that you can’t respond to new opportunities where these arise through customer demand – you may often open up whole new revenue streams which you had not previously considered. In other words, make the business customer-centric rather than operations lead.
Two other importants things to highlight from Elnaugh’s article:
- A little known fact is that most new start-ups take a good two years to come into profit – a long time to wait while you still have to support your lifestyle, especially if that includes a mortgage plus a family. Franchise owners on the other hand frequently find themselves making money after only a month or two of opening.
- The failure rate of franchises is less than five per cent compared to the fall-out rate of something like 65 per cent for normal business start-ups.