← Unemployable with Jeff Dudan
Unemployable with Jeff Dudan
Why Business Owners Win (While Employees Stay Broke) | Franchise Fridays with Jeff Dudan #164
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Jeff Duden
Hey, everybody. Welcome to Franchise Friday. I am Jeff Duden, and we are on the home front. If you lack uncertainty about your future related to your job, your industry, your income, or even the value that you create every day and who you create it for, if you are concerned about major factors that have the ability to impact you and your family then are outside of your control, if you are curious about how business owners that you know seem to have better economics, they go to the club, they've got boats, they've got cars, the house that you would like to have. Not to mention they have a lifestyle in terms of people, places, and experiences that you would aspire to have, too. Maybe it's time for you to explore the ever expanding world of business ownership through franchising. Let's go. All right, I'm excited to talk about this, and really the title of this episode is My Top four Reasons to Explore Franchising right Now. Or you could say, what problems are you trying to solve with a business? Like, what problems does business ownership solve? Number one, do you have an uncertain future? Perhaps you work for somebody, you work for a company, or maybe you're an independent contractor and you're in some industry. Are you concerned about being downsized? Maybe it hasn't happened to you. Maybe it's happened to people that, you know. Is there consolidation going on in your industry where companies are buying, they're offshoring? There's lots of things that companies do, especially when private equity gets involved to create efficiencies. And sometimes there's indicators there are unintended consequences. And those unintended consequences could be you. Are you uncertain about your income? Do you have a bonus coming? Do you have a raise coming? Do you have a promotion going? Maybe, maybe not. And then what about, you know, your ability to put money together, to retire, to kind of have the life that you want to have, to invest in the things that you want to have. Maybe it's college education for kids. Maybe it's just being able to take the trip of a lifetime or to celebrate an anniversary, whatever it is, you know, there's, you know, you may have uncertainty about the future in these things, and you're hoping, and hope is not a strategy that your job and the people that are responsible for you are going to be able to make it happen. Which leads us to, number two, lack of control. I recently had on the podcast a guy named Chris Collins. Chris was amazing. He just wrote two of the most powerful books that I've ever seen. And if you got $250 burning a hole in your pocket. Maybe you don't if you're a W2er, but if you do, you can buy his book of two book set called I Am Leader. One of the most powerful constructs inside of that is the importance of what's called a locus of control. And then self esteem. These two things make an impact in your life almost more than anything. They determine your level of success, your level of fulfillment, what you choose to do, and with a confidence with which you choose to pursue your life. If you have an internal locus of control, which is generally around 10% of the people, that means that you take responsibility for everything and that you understand that life happens to you, doesn't happen to you, it happens for you. You understand that things are going to happen and what's most important is the reaction that you make to them. An internal locus of control says, you know what? I'm going through life, I'm going through my career, I'm going through my relationships. But at the end of the day, if I want to make something happen, if it is to be, then it's up to me versus an external locus of control, which means that, look, everybody else is responsible for what happens. It's somebody else's fault. I'm like a leaf on the pond or on the river, just kind of floating around, hoping that I stay on top of the water. And it goes to, it goes to leverage as well. So, you know, leverage is something that I have personally always been very resistant to and I didn't understand it. But because I have an internal locus of control, I always wanted to, I always wanted to know, like, what are the external factors that have control over me? If you go back to having an uncertain future, somebody else decides when you get a raise, somebody else decides if you get a bonus, somebody else decides that they're going to sell the company or it's going to consolidate. They might say, you've got a job with us, but you've got to move halfway across the country to do it. You really don't have control. So you walk into work one day and you've got your kids in baseball and your wife's playing tennis and you're, you've got, you know, everything going on. And then all of a sudden somebody made a decision that wasn't you and your entire life is upside down. So this uncertain future and a lack of control, they go together and, and you know, it is, it is negative progress that's foist upon you is one of the greatest dissatisfactors in life. So maybe, just maybe, if you haven't to this point, you ought to explore that. And maybe business ownership through franchising is something that can give you control of your life, reduce leverage to external factors, and then create some certainty around all of these things that we're talking about so that like at the end of the day, I mean, you've got an opportunity to actually hit the goals that you decide that are important for you, your family, and those that you care about. Number three, economic advantage. Employees have an employee tax. If you, if you're fortunate enough to make a lot of money, if you have a good salary, or if you make commission, guess what? The more you make, the more you pay in taxes. And the reason is, is because the rates go up and you really don't have deductions that you can take outside of the normal set of things. I mean, you just, you don't have the ability, if you go to work somewhere to take advantage of all of these incredible deductions that are given to business owners and business ownership through the tax code, such as deferring tax. Why do so many entrepreneurs have airplanes? Well, I'll tell you why they have airplanes is because they sold the business or they made a lot of money and they're able to use a beautiful thing called accelerated depreciation. Some people do it with a, with a car that's over £6,000. You get to write the entire car off in the first year as an expense. You don't have to pay taxes on that money. You kick that can down the road and now you've got use of all those funds during that time. And remember, compound interest is the eighth wonder of the world. So you would rather have your money in your bank earning or in your investments earnings than in somebody else's or the government's. You've got executive comp plans. So there's all kinds of things that you can do inside of the tax code to put money away for retirement, either tax free or tax deferred or tax efficient. So, you know, you avoid the employee tax. And then you also get the double whammy of the, of taking advantage of the tax code that's built specifically. Really many of the incentives are built to encourage people to build businesses and to take chances and to invest. And that's why business owners get to take advantage of all of those things which just simply aren't available to you if you're a W2 employee. The third thing, an economic advantage, is hedge against inflation. Look, prices only go one way and when prices go up, business owners raise their prices. And as inflation is happening and the market is stabilizing, you know, some supply chain, is it going to cost more? Is it not going to cost more? What's happening to labor, you know, who pays for that is the consumer. The prices go up and the consumer is forced to pay it. The business owners have choice. And sometimes you've seen it where pharmaceutical companies or other big companies, the market goes crazy and all of a sudden, because some of their compensation was on a percentage and it's a percentage of a bigger number, they made $50 billion in profits. Well, I, on a smaller scale, it is the same thing with business ownership. So you know, the riches are in the niches. And the time between a price going up and you having the full impact of the cost going up is something that you can make. And you can also raise prices very intelligently and you can raise prices very incrementally. You know, if you're a 10% profit business, you raise prices by 1%, nobody feels it. That's a 10% increase in your profitability. So you're playing this game and of you set them, they pay them and you're hedging against inflation. Of course, if you're paying attention now, lifestyle advantage is number four. Okay, haven't, don't you know people that are business owners, they, you, you look at maybe their social media or you have dinner with them and you realize that they're constantly hanging around with great people. They are going to cool places and they are having incredible experiences. Now maybe there's education, maybe there's networking, maybe there's business building around it. And because of all of those reasons, those trips are tax deductible. So again, you know, what, what, what is work but could feel like vacation is a business expense. So, you know, why would you not look to expand your network? Because your network is really your net worth as a business owner and go out and spend this. So again, it's a, it's a, it's a lifestyle advantage in terms of the people, places and the experience that you get to have. But I think, most importantly, and I think Dan Martell said it best, you get to buy back your time. You get to choose what you do and whatever is most important for you. You get to build your business in a mirror of the authentic self to who you are. So let's say you're a church person, man, and you want to spend your time volunteering or supporting the church or something like that. You can do that with your time. Because people can't tell you that you can't. Let's say that you've got young kids and during the day they have school programs and you want to go spend your time on that. Guess what? Nobody can tell you. You can't leave your desk or you can't leave your cube and you can't go and do these things. Your time is, is absolutely your most precious resource. It's the only thing that they're not making any more of. And your ability to manage your time and to delegate. And then the other side of it is now you get into this incredible equation, right, of, okay, what is my time really worth and how do I make my time worth more money? And you know, that's a, that is a topic for another franchise Friday with Jeff Duden on the home front. But I will tell you, it will be a good one. But suffice to say that is part of the lifestyle advantage, which is really important because you are investing your time instead of letting other people spend your time for their benefit. Okay, so let's recap. Number one, business ownership through franchising can address the problem of your uncertain future. It can increase the control over your life and take back, reduce leverage to outside factors. It creates economic advantages in terms of getting rid of the employee tax, taking advantage of the tax codes that's written for business owners, and it's a hedge against inflation. So everything, as everything moves up, you move up to the business that you might have started that might have cost you a couple hundred thousand dollars because everything's moved up. The value of that business, when you sell it has moved up commensurately as well. So you paid with real dollars and, you know, 20, 25. And in 2030, when you go to sell the business, whatever real dollars are worth then is what you're going to get. It's the most beautiful thing that can ever happen to people. And because you know, and you make cash along the way and cash is king. But I will tell you, equity is the kingdom. You will make more money at the closing table selling whatever business it is you build than you probably made the entire way while you were operating the business. And that's the way. And so I tell you what, I'm going to leave. I'm going to go out and buy another business right now. I don't know what it is. I'm going to look on the way home and first thing I see, I'm so inspired by this topic right here. But for me, it was never really a choice you know, you, you might have to find the courage, you might have to find a way, you might have to take get rid of self limiting beliefs in your life around business ownership to be able to make this decision. But I will tell you, you will never regret the choice to take the leap and it's not fatal. So it's not going to kill you. You might as well. You don't want to live a life of regrets. And so if you want to learn more about this or you want to get more of my content, I encourage you to go to homefrontbrands.com you can go there and see all of our wonderful brands that are working in the property services space, the most durable space, the most expanding space that there really is right now. And or you can go to jeffden.com and find information on me there and from jeffden.com or from my Instagram just Jeff Duden, you can download a copy of my book the Discernment the Business Athletes Regimen for a Great Life Through Better Decisions. It will talk you through my journey as to how I started the business and then how I franchised that business, how I sold that business and now how I'm impacting have impacted thousands of families through franchising and especially today here at Homefront Brands, the fastest growing property service platform in North America, by the way that I measure it, which is the ones that I own. So with that, if you like this content, give a, like, give a subscribe and if there's somebody in your life that is actually stuck or uncertain or complaining or feels like they're trapped, send this link to them. They can really use it. You know, maybe, maybe it'll trigger something in them that will get them thinking. Maybe they can hook on to our content and maybe we can make an impact in their lives. But with, but if not, look forward to talking to you very soon. So again, Jeff Duden, we've been on the home front. This is Franchise Friday. Thanks for listening.