You want to work fewer than 15 hours each week but make a six-figure salary. It might sound like a dream, but owners of the best absentee businesses live this reality every day.
As with any major financial decision, it’s important to analyze your opportunities carefully. You want to make the best investment; with little to no risk. It’s your hard-earned money at stake, after all.
Not every absentee business is a good opportunity, which is why investors must do their homework and recognize the signs of a successful business model.
The Business has Strong Sales and Plenty of Growth Potential
This point is perhaps the most obvious, but also the most important consideration for an investor who wants to purchase an absentee business. Is the company keeping up with changing trends? Is there increasing demand for the product? How has the recent pandemic impacted this industry, and what could that mean for the company’s bottom line?
Whether you’re considering investing in a franchise or an individual business, collect as much data as possible to make sure the proposed investment is backed by sound numbers.
For example, the global beauty industry is a $532 billion business. Most projections indicate it will reach or exceed $800 billion by 2025. Within the beauty industry, salon suites – rentable suites for beauty professionals – are a successful trend. Specifically, MY SALON Suite franchise locations grossed an average revenue of $362,000 in 2019.
There’s Low Workforce Turnover
The people who work for a business day in and day out will give you one of the best indications of a business or franchise’s success. Employees who trust leadership and believe in the company’s mission help that business thrive.
High turnover rates are bad for morale, and the costs are significant. Turnover can cost an employer 33 percent of an employee’s annual salary. The expense of recruiting, relocating, onboarding, and training new employees adds up — so cultivating a culture with less turnover keeps revenue flowing. Before buying an absentee business, make sure the model is working for the people who help run it every day.
Franchise owners of MY SALON Suites don’t worry much about employee turnover because they have very few employees. Instead, owners focus on renting out their suites to driven entrepreneurs who we call “Members.” Members have autonomy over the individual beauty business in each suite and pay rent to the franchisee for the space.
The Business is a Franchise With a Proven Absentee System
An investor looking for a low-risk option should consider absentee franchise ownership. Sure, you could consider experimenting with your own individual absentee business venture, but gambling is only fun when you win.
By partnering with a franchise, you can sleep easier at night knowing you’re invested in a business model that works, and you can lean on support and advice from the franchisor and fellow franchisees as you get your new business up and running.
Continued expansion is a good indication of a working absentee system. Since the first doors opened in 2010, MY SALON Suite has quickly expanded to more than 200 locations across the United States. We are 5,000 Members strong, and growing daily.
You Don’t Have To Be Present for the Business to Function
Not every business can operate without the owner present during business hours, so it’s important to recognize the type of businesses that are appropriate for absentee ownership.
The most common absentee franchise businesses are salons, fitness centers, car wash franchises, and other service-based industries. Absentee owners are still engaged in the success of their business, but they rely on trusted and experienced managers to run day-to-day operations with part-time employees.
MY SALON Suite’s franchise model is perfect for investors looking for absentee ownership opportunities because the overhead and operating expenses are low. Franchisees hire a manager to oversee day-to-day operations and facility maintenance, but Members operate independently.
While MY SALON Suite offers helpful support and products, such as payment and scheduling software, Members ultimately manage their businesses and clientele. Our franchisees thrive because our highly skilled and motivated Members are eager to make their beauty businesses a success within their suite.
Top-to-Bottom Engagement for Overall Success of the Business
Being an absentee owner does not eliminate the need to oversee the business. The most successful absentee businesses have engaged owners, managers, and employees who are all dedicated to the company’s lasting success.
Of course, this doesn’t mean the owner works 40 hours per week on-site. Instead, they thoughtfully delegate responsibilities, keep a close eye on finances to ensure the business’s continued success, and act as caring mentors to employees.
At MY SALON Suite, our business model is unique because it offers entrepreneurs the chance to grow a business capable of generating strong returns while acting as
a mentors and leaders to other budding entrepreneurs.