Can you become rich off of a low investment?

"On average, millionaires invest 20 percent of their household income each year. Their wealth isn't measured by the amount they make each year, but by how they've saved and invested over time," writes Ramit Sethi in his book I Will Teach You to Be Rich. Not all of us are millionaires, but this rule still applies to us and the way we spend our money. Wealth isn’t measured by how large our paycheck is, but what we do with it.

In the franchising world, everyone is an investor. They are investing in a brand which they believe will bring them success and fortune sometime in the future. These “investments,” or franchises, range from low to high prices—some can be well above the seven-figure mark while others are easier to wrap your mind around.

In an interview with 1851, Mosquito Joe*’s COO Lou Schager and Director of Franchise Development Jodie Ramoino explained the amount of success their franchisees have seen, even after buying a low-cost franchise with the brand. Mosquito Joe just created a “Million Dollar Event” inviting all franchisees within their system who have grown their business to over a million dollars.

Schager said, “Last year we had only five, but in 2017, we are expected to double that number and host 10 to 12 hard working Mosquito Joe owners.” Ramoino followed up by saying, “It’s all about what you do with it - low cost investments come with great opportunities.”

So how do you make that low-cost investment worthwhile? Eric Little, Chief Development Officer of Right at Home*, provides us with tips and advice he gives to prospective franchisees looking to get into the system and newly-signed franchisees looking to grow their business.

He explains that it is so important to get into the franchising business, or any business, because of a compelling reason - not just the money. Are you looking for more time with your family? Do you want to impact the community? Are you simply looking to stay put and not travel as much as you do? All of these are compelling arguments and reasons why people get into business for themselves. He also says that “people need to ask themselves the hard questions.” These aren’t spur of the moment questions, as they should be milled upon overtime.

Once one makes that final decision to invest in a franchise, even if it is just a small amount, he explains that the most important thing to do within the first few years is to use your time wisely. When you aren’t at the office, restaurant, location, etc., make your calls! Little explains, “You have nothing else to do, so go find clients!” The one things new investors don’t do enough is focus on business development.

He then went on with one word: “engage.” Little explained that there are so many opportunities for new business owners, whether it’s with your local chamber of commerce or with the brand you invested in. People need to take advantage of these opportunities to gain advice from others who were once in the same boat.

Little also touched upon getting through the first 18 to 24 months. “This is the toughest part of the journey. People will ask themselves ‘what in the world was I thinking’ as they see the sacrifices they have or will have to make,” he said. Little explains that if you are asking yourself that question, you need to return to your compelling reason as to why you got into business for yourself in the first place.

Little ended the interview by describing the term “rich.” On the surface, society measures richness by the amount of green you have in your pocket. Through Little’s journey in the franchise and business world, he has determined that money is just a fraction of richness. He says it’s “not about the money, but about having the lifestyle and time and fulfillment.”

What’s great with investing in a franchise is that the money is invested in yourself, and you control the outcome. The first few months will be difficult, but one needs to remember the reason for taking this specific route. Keeping this in mind, any investment, especially a small one, can be worth tenfold.