23 Jun

CUSA Blog: Freelance or Franchise?

Consider Franchising:

As a former CEO of a successful franchise development company, I helped more than 300 brands in over 90 different industries. I wrote a very successful book entitled “Solving The Puzzle Of Owning A Franchise” (2007).

What I discovered is that people buy franchises because they want three things:

  1. A Brand. They want national recognition of their business.
  2. A “Proven” Business Plan. They want to increase their chances at success.
  3. A System of Training. Mostly, because they have not done this business before.

The average franchise costs $50,000 to $100,000 for a service franchise and easily up to $250,000 for retail or quick service restaurant (QSR). A number of franchises cost in excess of $500,000. The average person cannot afford to buy a franchise, although there are over 1500 franchise concepts and as many as 750,000 franchise units employing over 12 Million people in the United States alone.

I researched several of the major magazines and websites including the Franchise 500® and found that there are some interesting additional facts about franchising:

  • Franchise sales in the United States exceed $1 Trillion.
  • 1 in 12 businesses in America is a Franchise.
  • It is estimated that 97% of franchise businesses are still in existence after 5 years as compared with non-franchise business after six years was about 37.8%.
  • 50% of franchisees are prior executives who own more than one franchise unit.
  • The largest segment is Quick Serve Restaurants at about 21% of all franchises.
  • Adding the service segments together as a group make up about 33% of franchises.

Here are some Freelancer Facts:

Freelancer Pros

  • According to most major financial magazines, by 2020, up to 50% of Americans will be “Freelancers” working for themselves either from home or delivering services to the home or to a business.
  • In 2014, there were 53 Million Freelancers in the US; 1 in 3 Americans are Freelancers; and Freelancers produced $715 Billion in sales.
  • The average Freelancer earns 45% more than an employee doing the same job. The average income is currently $68,000 per year.
  • 49% of Freelancers earn $20 to $59 per hour; 33% earn $70 or more per hour; and 15% earn over $100 per hour.
  • Freelancers have freedom of their time, only 65.5% work full time 40 or more hours per week.
  • 90% of Freelancers are happier than when they worked a full time job.
  • 77% of Freelancers are optimistic about their future despite the economy.
  • 71.7% of Freelancers think of themselves as entrepreneurs.

Freelancer Cons

  • 20.8% of Freelancers have a hard time finding clients.
  • 16.3% suffer with the feast or famine cycle of owning their own business.
  • 10.1% find it hard to maintain the life-work balance.
  • 6.8% need help with time management.
  • 4.5% want to earn better fees for their service.
  • 4.4% worry about affordable health insurance.
  • Freelancers are concerned how to save for retirement and other benefits.

Top 15 Types of Freelancers

  • Designers                     20.4%
  • Writers                          18%
  • Editors                         10.5%
  • Copywriter                    10.3%
  • Translators                    7.6%
  • Web Developers           4.5%
  • Marketing                      4.3%
  • Consultants                   2.3%
  • Virtual Assistants          1.9%
  • Illustrators                     1.9%
  • Researchers                  1.6%
  • Videographers              1.4%
  • Photographers              1.3%
  • IT Support                     1.2%

My Conclusions:

  1. Franchise was the leader in business opportunity, but Freelancing is the FUTURE!
  2. Freelancers can join websites for FREE or little money and start a business that in one year’s time can net similar to a franchise ($68,000 per year) without the investment risk.
  3. We are developing a website called FreelancerNation.com (July 2015) that will combine the best of franchising, freelancing, and collaboration and align with the Share Economy.
  4. You will be able to join for FREE and learn from mentors who are making real money in the GIG Revolution.

One thought on “CUSA Blog: Freelance or Franchise?

  1. One of the biggest assets we can have is knowledge, and staying ahead of trends and seeing the direction the economy is turning towards in the business realm is something we all can benefit from.

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