by Richard Pope
There is a new dynamic that seems to be coming of age in the franchise world today – our children are becoming business owners.
The baby boom generation, your generation and mine, has built corporate America and has been a major factor, if not the deciding factor, in millions of decisions about product marketing. Our generation has had the single greatest impact on society than any other single factor in history. Now our children are starting to step up to be heard from as well and many of them want to do it their way. They want to take their futures into their own hands and build their own businesses and enjoy the security and peace of mind that being a business owner brings.
As employees of corporate America, the boomer generation has experienced both the highs and the lows. We have provided a good living for our families, a house in the suburbs, two cars, vacation and college for the kids. We have complained about the job, the boss, the lack of respect, the frustration and countless other things and our children have heard us. We have been laid off, fired, prematurely downsized, or simply caught up in one of the thousands of mergers and acquisitions that precipitated RIF’s and massive reorganizations and our children have been listening. We have seen employees pension and retirement funds wiped out in companies that have gone bankrupt (Delta Airlines) or been ruined by dishonest leadership and scandal like Enron or World Com and our children have been watching and listening. Our children have learned from us and they don’t want to go through this. They don’t want to relive those bad times with job insecurity and corporate politics so they are turning to entrepreneurship early and we are helping them.
The boomer generation worked hard – 50 and 60 hour work weeks were not uncommon through the 70’s, 80’s and 90’s. Be at your desk early, travel in off hours and late at night, and don’t forget to make that appearance on Saturday morning. During that period, the family unit became a little unraveled. Business became more important than family. Business meetings were more important and more demanding than PTA meetings, little league or recitals. Our children missed us at those events and they have decided that they want more flexibility in their work. They want family friendly time and they want to call the shots.
Our kids have learned well and now they are moving into business ownership through franchising. We are not just helping them to do this but encouraging them as well – not only that but we are also supporting them financially. It’s fun and exciting to see your children do well. Franchise business ownership is less risky and provides a model for success. The franchise model includes a brand name, tried and proven systems and methods, research and development and training. The franchise model includes training and support at every level – it is really a “business in a box” that comes with instructions. Franchise businesses are easier to finance and the ability to sell the franchise business provides a viable exit strategy. All of these positive attributes give the supporting parent a feeling of confidence knowing that their investment is protected.
Many parents are actually becoming involved in their children’s business as well, not only from taking on a few of the managerial duties but also providing a consultative relationship as well.
Over the past 4 to 5 years, the ever-changing dynamics of corporate America have changed yet again. Unemployment, at an all time low in ’07 is now climbing to an all time high. The corporate refugees are once again finding new job opportunities to be scarce. The typical franchisee of 2003 – 2006 was a downsized, prematurely retired corporate employee, 45 to 55 years of age, seeking business ownership out of desperation as opposed to desire. This cycle is now repeating itself in as the country is experiencing the great recession of 2008-09. The new breed of entrepreneur, which came onto the scene in ’07, and is growing in numbers every day, is the 28 to 39 year old, child of the baby boomer. Most are married, with college degrees. Both husband and wife are working but they have tasted what corporate America has to offer and found that they don’t really like it. They want to build wealth and security for themselves and their families. They want independence with upside opportunity. They want something that working for someone else simply can’t provide. The baton is being passed and our children are stepping up to take it and run with it and they will make us proud.