Last Tuesday, I met a franchise owner who’d made a classic mistake.
His first franchise was a success. He was making $250k+ per year and had a lot of flexibility in his schedule.
Then he tells me he just bought into a new brand.
“Now I can cross-sell to the existing customers!”
Ugh. 🤦🏼♂️
It’s not that diversification is bad. It’s about timing.
You probably didn’t buy a business to maintain wealth.
You bought it to become rich.
Let’s be honest – new opportunities are exciting.
There’s a dopamine hit that comes with exploring something fresh
But understand what you’re trading: entertainment for wealth.
Wealth is created through concentration and maintained through diversification.
Nothing wrong with that trade IF you’re consciously making it. Just call it what it is – an expensive hobby, not a wealth creation strategy.
Most franchisees don’t realize there are levels to this game.
Level 1: “I do everything myself”
Level 2: “We do it together as a team”
Level 3: “They do it without me”
Each level compounds your knowledge, experience, and income.
Once you can operate 3 units without being there daily, operating to 10 isn’t fundamentally different, except you make 3X more.
Then, 10 to 20 isn’t much of a difference.
Now you’re making 10X the money and probably have 10X more freedom.
It’s like driving in fog. You can’t see a mile ahead, but you can see 10 feet and that’s enough. You keep moving forward, trusting your instincts and adjusting as needed.
But none of that happens if you dilute your focus too early.
I recommend to follow the “Copy & Paste Method”
- Learn the system
- Execute at > 80%
- Replicate relentlessly
- Resist the urge to tinker
- Fire yourself
Each time you hit Ctrl-V, it should generate consistent, incremental cash flow.
Sounds boring, right?
That’s the point.
The most successful owners aren’t trying to be Bezos or Zuck.
They’re trying to make seven figures a year with a business that doesn’t drive them crazy.
So how do you know when it’s time to diversify?
- Your business operates without your daily involvement
- Your management team is strong enough to handle complexity
- You have excess capital that can’t be efficiently deployed in brand #1
Want my help in finding a “copy & paste” brand?
Book a free discovery call today with my team
We’ll help you identify scalable brands that match your goals, budget & has open territory in your market.
Cheers!
Brian
