I hear a McDonald’s franchise costs over a million dollars to buy.
When you buy one, though, it basically starts to print money. They have the system down so well that you can plop a McDonald’s down anywhere and tell ahead of time how much money it will make. Likewise Starbucks, Dunkin’ Donuts, and all those places. A franchise is essentially a business in a box– a machine.
Other businesses, the unique ones, are machines too. As I sit here at my local coffee place by the canal, I realize suddenly that the gears beneath it are identical to the place I go to downtown. Different owners, different staff, different food– same business. It’s a formula, and that means that there’s a lot of it you can predict.
The only part you can’t predict is the human element. Can the staff upsell you their lattÃ©s, or make you show up more often? Once you’ve got it running, though, that too is mostly math. You know how much you make any day of the week under most circumstances.
If you’re a freelancer and you mostly work with clients, you may never understand this, because your business doesn’t work this way. You have low overhead because it’s basically you and your work, but it also can’t be automated. You can’t let your success work for you as much, unless you use existing infrastructure. (It’s why singers release perfumes.)
I bet if you run enough businesses, you start to see the machines inside every business. If you know real estate, you can walk into a building and see how everything is going to work 5 years from now, and tell the risk of the tenants from how they greet you.
By the way, we here online should be able to do the same thing with websites. Can you?