For many people, the American dream involves running your own business, setting your own hours and enjoying successful operations. Having the ability to start a business is a privilege - not a right - and should be treated as such. Failing to recognize the opportunities available is a pitfall for many franchisees, but can be avoided if these people can identify the business challenges they may encounter.

Mario L. Herman, a Washington, D.C.-based franchisee attorney, told The Atlantic that some franchisees could invest between $750,000 and $2.5 million to become involved in certain industries. In fact, a specific demographic has emerged among U.S. franchisees over the past few years.

"[Franchisees] tend to be close to retirement, maybe in their 40s or 50s, making in the low six figures in private industry," Herman told the news source. "That demographic has been pretty consistent through the years. You're not looking at people making $20,000 to $30,000 a year because of the initial investment costs."

While franchisees can reap significant rewards with franchises, those who consider the short- and long-term impact of their investment put themselves in position to be successful.

The undercapitalization problem
Being your own boss is ideal, but only if you have the capital to back up your business endeavors.

Herman points out that undercapitalization is a common problem for many franchisees. When a small company lacks the resources necessary to control its operations, it's unlikely that it will be able to sustain its business plan.

Franchisees who do their homework will be prepared to deal with any challenges that come their way, including undercapitalization. Reviewing the financial data and contracts relating to a franchise allows a business owner to become an expert in his or her industry. With a wealth of information at his or her disposal, this franchisee will be able to develop solutions to problems that might otherwise sink his or her business. Additionally, franchisees who understand that being your own boss involves a tremendous amount of hard work and effort can set a positive example for others in their respective industries.

Being your own boss comes with plenty of responsibility, and those who can properly manage this privilege will experience long-term success with their franchises.

The Liberty Tax Service franchise opportunity is appealing to a diverse America, and ranked highly for its affordability and potential. Entrepreneur magazine has ranked Liberty Tax Service on its "Franchise 500" list of best franchise opportunities since 1998. Liberty Tax Service is the only tax franchise on the Forbes magazine's "Top 20 Franchises for the Buck." (2012) Our tax franchise is an affordable and viable business choice. Each office provides thorough, computerized tax preparation coupled with superior customer service. For the best small business opportunity in the income tax franchise industry, choose Liberty!