If you are retiring from the military, you may want to consider a franchise business for your second career. While entrepreneurship is not for everyone, approximately 75% of Americans have considered business ownership as a career option, and franchisors consider retired service men and women excellent candidates for their businesses.
There are many roads to self-employment, and franchising a business is one of them. At its most basic level, franchising is a mutual agreement between an entrepreneur and a business: the entrepreneur pays a fee to use an established brand and business system, while the franchisor agrees to provide support and training to its franchisees.
If you are close to retirement or are already a military retiree, here are some great reasons to consider a franchise business:
- Unlike starting a business from scratch, a franchise provides a system for you to follow. Like guardrails on a road, the franchise system is set up to allow maximum flexibility within the system, but the guardrails are there to keep you from driving off the road. In the military, you followed a system and were successful, and you can do the same in a franchise business.
- Your family’s medical and dental insurance are covered. Most entrepreneurs rely upon their spouse’s medical benefits, purchase expensive private policies, or go without medical and dental insurance. Your retirement benefits cover your family’s needs.
- You have a guaranteed retirement. Unlike most entrepreneurs, your retirement pay provides a living allowance you can rely upon during your business’s ramp-up period.
- You can tap into your voluntary retirement contribution fund to start up your business. It is legal to create and fund a corporation from your retirement funds without incurring a penalty. Your business becomes a self-directed IRA.
- Franchisors offer reduced franchise fees for veterans. Most franchises offer a reduction in franchise fees to qualified franchisees. It is not a huge savings, but every little bit helps.
- You may own multiple homes. Many military retirees accumulate several homes as they travel throughout their career. If you find yourself in this beneficial situation, you now have several assets you can either sell or borrow against in order to fund your business.
Taking the leap from a military career to entrepreneurship may sound daunting to you, but if you want to be your own boss, create your own company culture, and reap the rewards self-employment brings, the advantages created by your time in the service give you an edge over many first-time business owners.