Before you get too excited about the prospect of becoming a franchise owner, and getting some much needed control back in your life, there is one thing that you must do. It involves a piece of paper, a ruler, and a pen...
"If you don't know where you are, how can you expect to get where your going?"
{My quote}
Here goes;
I would like you to get a legal sized piece of paper, a ruler, and yes..a pen or pencil. Do you have those items together now? Good. The following exercise will help you tremendously;
1. Put your piece of paper on a flat surface
2. Place your ruler on the paper, dividing the paper in half
3. Using the ruler's edge, draw a vertical line down the middle of the paper
4. On the left hand side list all of your assets. These will include stocks, bonds, IRA's, 401K's, real estate, jewelry, furniture, automobiles, etc. Add them up, and put the total on the bottom.
5. On the right-hand side of the paper, list your liabilities. These will include your mortgage, credit card debt, school loans, personal loans, home equity lines of credit, etc. Add those numbers up, and put the total on the bottom.
6. Now..and this is the most important part of this exercise- subtract your liabilities from your assets. Put that total on the bottom, in the middle.
7. You have just come up with your approximate net worth. {This will fluctuate because of the stock market, and other factors, most of which are beyond your control.}
What have you come up with? Are you surprised? Is it more than you thought it would be? Is it less?
I have averaged out the net worth's of all the folks that I have helped get into a franchise business since 2001, and have come up with an average net worth of $400k.
How does your net worth compare?
Soon, I will discuss what investment amounts may make sense for you, based on your net worth.
Here it is; How Much Should You Invest In A Franchise?
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