Some American workers are perfectly content as they reach their middle years. They like where they’re at and look forward to a secure retirement. But others crave change. Not just another job in their field, or even one with a promotion. What they truly want is change. Real and meaningful change.
They seek a career change at 50 or thereabouts. That could mean franchising as a second career opportunity. Many seek a new start as a Freeway Insurance franchise owner. Look closer to learn why.
The Growing Appeal of Midlife Career Transitions
Some Americans have spent years, or even decades, working in the same industry. Using the same buzzwords and doing more or less the same things. They might change jobs on occasion, but find more of the same.
Some get bored with the challenges that no longer seem challenging, the activities that have marked their working days, months, and years. They want to try something new.
Still others want to have a better handle on the direction of their own careers. They feel they can do that best by transitioning from employee to employer. They might feel lost or underused on their current career path and wish to make more of an impact. Or they seek a better work-life balance. To do so, they feel they must take more control of their careers. Yet others might feel they could find more financial freedom through entrepreneurship.
Whatever the reason, they begin to hash out second-career ideas and find franchising — and specifically, insurance franchising — to be an ideal option.
Why Insurance Franchise Ownership Makes Sense for So Many Career Changers
Insurance is one of the fastest-growing franchise categories. But first, consider the franchise business model.
When you own a franchise, you’re the boss. You own the company, but it’s closely patterned after a larger corporation with a proven record of achievement and a brand that customers already know and trust. You adopt the company name, the branding and logos, the products or services offered, and their ways of doing business.
While you’re new to the business, your company name and reputation aren’t. If you’ve chosen the right franchise, you launch your company only after being comprehensively trained. Once you’re in operation, you have the ongoing support and guidance of your franchisor whenever you need it.
The reason a known and proven insurance franchisor like Freeway Insurance is such an ideal option for many career changers is that you’ll always have motivated customers. Almost literally all U.S. adults need insurance of one kind or another — or several such products.
You can’t drive a vehicle in almost every state without owning auto insurance.
You must have homeowners insurance to obtain a mortgage. A growing number of property managers won’t even lease you an apartment unless you have renters insurance.
Anyone who wants to leave a meaningful estate to loved ones gets a life insurance policy.
It’s unlikely you can own a business, large or small, without having one or more business insurance policies.
You get the idea. As an insurance company franchisee, you have a built-in customer base because you’re selling must-have products.
You also have some unique advantages in terms of compensation. You’ll make commissions on the policies you sell. If you continue to sell policies to that same customer, you’ll earn renewal or residual income. Consider, for instance, a life insurance policy. If you sell it to customers in their thirties and they keep the policy active, you might receive residual income for several decades. Those commission checks could continue to come in even after you’ve retired from the business.
One final reason an insurance franchise can be so appealing to those making a mid-career move is the low investment potential. There’s no physical inventory to buy or store. You can operate the business solo and even base yourself in your home. You’ll need little more at first than a phone, a laptop, and a website. You might only grow your team and seek out office space when your business takes off.
Essential Skills That Transfer to Franchise Ownership
As a worker with decades of job experience on your resume, you have several keen advantages in your career transition planning. You might know how to pitch a sale and persuade customers to take action, whether you’ve been in sales or simply seen the process done.
You might have also learned leadership, collaborative teamwork, and problem-solving skills. You’ve learned discipline, self-motivation, and commitment. All of those skills and values will serve you well as a new business owner.
You’ve also met a lot of people in the course of doing the business you do. Some are powerful, talented, or wealthy. They might become future partners, investors, or valued customers. Some could perhaps be all three.
The point here is that your background, work experience, and acquired expertise will all prove to be valuable as you consider your midlife career change. Your time was hardly wasted, even if you’re now on a career track that no longer interests you.
Financial Considerations for Second-Career Franchisees
So what will your franchise cost? That will vary dramatically depending on the franchise operation you adopt. The franchise fee — your initial cost of entry — can range from a few thousand dollars to nearly seven figures.
A Freeway Insurance franchise, for instance, will cost you a franchise fee of $25,000 — or less if you’re a U.S. military veteran in good standing. In addition, you might need startup funding of $25,000 to $75,000 or more, depending on your location. This will keep your business going until you achieve profitability.
In addition, you’ll have ongoing costs such as royalty payments for the insurance products you sell and marketing costs to support the brand and keep your brand in high regard.
Where does that money come from? That’s what you must consider as you make your plans. Do you have savings and investment capabilities? A working spouse to keep you solvent before your operation starts to turn a profit?
Back to those valuable contacts you’ve made during your working career. Do you see any as possible partners or investors?
And finally, consider applying for startup financing from lenders with whom you’ve successfully done business in the past. For instance, the lender who holds your home’s mortgage might warrant a meeting.
Begin your pursuit for funding by drawing up a list of potential lenders, investors, or partners, then start reaching out.
Evaluating Insurance Franchise Opportunities
If you’ve decided to dig deeper and actively explore insurance franchising as a second career idea, take your time and carefully review your options.
You can start by going online. Query your search engine for “insurance franchises for sale,” or use similar language. Insurance companies that are serious about recruiting new franchisee talent will have informative websites and be eager to make contact.
Read the web content carefully. Is it a brand you know and trust? Does the appeal seem transparent? You can reach out to a franchise representative. Get to the bottom line quickly. Ask upfront about costs, because it’s not worth wasting your own time if it’s an offer you simply won’t ever be able to afford.
If you’re still interested after speaking with the franchise rep and learning cost details, ask for a franchise disclosure document, or FDD. This is a mandatory written document that spells out the offer and other relevant information about the company and its financial profile.
Read your FDD carefully, and let your partners, investors, and advisors do the same. If your lawyer, accountant, or others have questions or doubts, get the issues fully resolved before agreeing to any transaction. If you still have doubts or aren’t comfortable with your franchise rep, walk away and consider other options.
The Transition Journey From Employee to Franchise Owner
Your life is about to change. It will almost certainly be for the better, but there might be some obstacles. A few bumps on the road to greater satisfaction and reward. But it’s nothing you can’t handle.
Planning Your Exit Strategy from Your Previous Role
Burn no bridges. And don’t neglect your current job as you make plans to launch your new business. After all, your boss or your boss’s boss might become an investor. Or a customer. Everyone you work with could be a future policyholder, so keep their information in your phone’s address book.
Carefully explain to management that your decision isn’t based on dissatisfaction with your current job (whether it is or not), but is a challenging and exciting opportunity. You’re looking for new creative challenges, adventures, and reward — not trying to escape your current situation.
Give your employers plenty of advance warning, and help in every way you can in training your replacement or otherwise making the transition as easy and painless as possible.
The First 90 Days as a Franchise Owner
Work long and hard, but don’t grow panicky or despondent. You might feel a frequent need to seek out the support and guidance of your franchisor, especially in your early days, and you should always feel invited to do so.
You’re almost certain to be spending more in those early days than you take in. That’s normal. If you have any doubts about your direction, seek the advice of other franchisors, especially those in markets that are similar to yours. How long did it take them to start turning a profit? What else should you do to maximize your return on investment?
Take a few deep breaths, ask questions, stay flexible, and never hesitate to get help from the experts when you need it. After all, one reason you’re a franchise owner is that you don’t want to be alone as an entrepreneur.
Overcoming Transition Obstacles
You’re on your own. That’s a wonderful development — and a potentially terrifying one. You own all of your accomplishments as well as your mistakes. That’s the good and the bad of your new status.
But, as stated, you’re never on your own when you don’t want to be when you’re a part of a successful franchise network. Your success is your franchisor’s success. It’s always in their best interest to see you benefit.
The mindshift you’ll make from employee to business owner can make your world tilt if you let it. Will you enjoy your new freedom too much and lose some of your sense of motivation and self-discipline? Or will you take on too much, too soon, and lose the sense of work-life balance that might have been a motivating factor in your decision to go on your own? Be careful of both extremes.
You also have some income fluctuations to consider. You might be used to a steady paycheck — you got one every two weeks, and the amount was almost identical each time you got paid. That’s comforting, but it might not conform with your new reality — especially at first.
How nervous will that make you? Do you have enough in backup funding to keep yourself going during those dry times? Do you have a working spouse who will continue to bring in an every-two-week paycheck? Can you cut your household spending and hold off on bigger purchases until your income starts to even out?
Did you begin your insurance franchise operation by working alone from your own home? For many, that’s the smart decision, but you probably can’t do it forever. As your business grows, you might want to hire a team, migrate to a commercial workplace, and buy more of the equipment you’ll eventually need.
These are the thoughts, the obstacles, and the challenges met by virtually everyone who’s started a business of their own. But as an insurance franchisee, you’ll have help overcoming everything you’ll be up against, and you’ll find that to be a fantastic advantage as you fulfill your second-career opportunity.
