In this episode, host Steven Pesavento talks with franchise consultant Kim Daly about her journey to financial independence through franchising. Kim shares how she made the decision to become an entrepreneur at a young age and how franchising helped her find the structure and collaboration she needed to succeed. She also talks about the importance of demonstrating to her children the benefits of business ownership and the freedom it provides. Kim shares her passion for franchising and how it changed her life, and how she helps others achieve their personal, professional, and financial goals through franchising. In addition, she discusses her approach to achieving financial freedom through passive income streams, real estate syndication, and equity ownership. Listeners will come away from this episode with a greater understanding of the benefits of franchising and how it can help them achieve their own goals.
Key Takeaways
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About our Guest:
Kim Daly is a successful entrepreneur and business consultant. She is the founder and CEO of Daly Group, a consulting firm that specializes in business strategy, leadership development, and organizational change. With over 25 years of experience, Daly is a sought-after speaker and author on topics related to business growth and transformation.
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Steven Pesavento 0:00
Hi, I'm Steven Pesavento, and welcome to the name your number podcast presented by the investor mindset. As someone who comes from a challenging childhood, I've spent my life seeking financial security, personal growth, and ultimately freedom, the freedom to not wake up worried about the next paycheck, but rather with the confidence of knowing that my passive income pays my bills without the need to think about it. When you name your number that you'll earn passively, that creates your ultimate quality of life that I believe you've achieved real freedom. Welcome to my show, it's time to name your number. A big mistake, a big, big misnomer about the idea of financial independence that people have is that, oh, well, if I create passive income, that I'm going to be bored, or I'm going to not continue working towards my mission. That's not at all the case. It's more so knowing that you've created it. It's something that covers everything you'd ever need, and then some, which only enables you. Welcome to the name your numbers show presented by the investor mindset. We're on a mission to create financial independence for over a million investors. And when you name your number, that you want to earn passively, every month that creates your ultimate quality of life, then I believe you've achieved real freedom. And if you're ready to name your number, and create your passive investment plan that you'll follow step by step to get there, then head over to investor mindset.com/number. To download the free guide. And for those of you who are ready to build this plan together with me, and a group of like minded investors just like yourself, then you'll be invited to schedule a call with one of my top advisors. Now let's get into the show. today. I'm excited to have Kim dally on the show. How're you doing today, Kim?
Kim Daly 1:46
Hi, I'm doing great. Steven, thank you so much.
Steven Pesavento 1:49
Well, for those of you don't know, Kim, she's spent the last 20 years helping people tree achieve financial freedom in the franchise industry. She's a very successful franchise consultant. We'll talk a little bit about what she does. But what I'm really excited to talk with you about is you've been in this space helping people create businesses create income streams, and you've obviously had a lot of success yourself. So I'm excited to be able to get into what you've done personally, what you've helped other people do and hear a little bit more about your story.
Kim Daly 2:20
You're ready to get into things. I'm ready, Stephen.
Steven Pesavento 2:23
Awesome. So before we get into the nuts and bolts, let's start out on a personal note by looking back at earlier in your life. What events or influences from your childhood shaped who you are today? And how did that play a role in your money and investing journey?
Kim Daly 2:39
It's such a great question. The children of entrepreneurs, there's some statistic that children of entrepreneurs go on to become entrepreneurs themselves. And I am one such a statistic. And I love that when people come to me and they have that dream to build a legacy. I'm like the legacy is a role model you are for your children. Right. So my dad was an entrepreneur and I grew up in that environment. And I did work for a company for three years, I was actually on my way to medical school because I had planned to become a doctor. And I answered a classified ad in the newspaper for a franchise company. And that seemingly changed my life. But as I look back, it didn't really because when I was 15 years old, I told my parents, I want to be a motivational speaker. Like, how do you do that? So I was a student, I love science, I'm going to do the practical thing. I'm going to go to medical school, I'm going to work with athletes, I'm going to help and serve people in a medical community in the medical capacity. Never been to there. But if you look at what I'm doing today, it's kind of funny, because every day I wake up to inspire other people's dreams, all the while I'm living my own dream. So it's kind of funny how things work out even when you felt like you were taking a deviation from your path.
Steven Pesavento 3:50
Well, it's so fascinating, right? Because when you grow up the child of an entrepreneur, you see a whole nother world. It's a very different world than being an employee being an entrepreneur, especially when people are in building mode. I mean, how did that impact you? What were some of the things that you learn from that or that you took away that ended up leading you down a similar path?
Kim Daly 4:10
So the number one thing is my dad was always around, like my mom had a job. Now, if you ask them, they're gonna have different stories about my, my mother was working, but my dad was always the one that would drive us you know, I was a competitive swimmer. He would take me to the pool in the morning, he would pick us up after school, he would take us to our activities like it was the freedom right to have the lifestyle that he wanted working in and around our schedules, as we needed a parent to be there to drive us around. That's probably the biggest thing and not to mention, like my dad. My dad was always on the cutting edge like he always he had like the bag phone I can show you my show my age. But before cellphones were like a thing, you know, he always had money and he you know, he was sort of always on the cutting edge and it's like those impressions when you're a kid they really stick with you like he was always buying a new car. are, you know, I've never I've never really asked him he was probably leasing on but he always sort of like was you know, had that status associated with who he was and people around town knew him and my father was a police officer. And then he became a private investigator and he opened his own practice. And so he knew a lot of people, a lot of people knew him. But it was also that like, he was very social and outgoing and, and had influence in the community. And I think all of those things definitely shaped my personality and who I am today,
Steven Pesavento 5:31
from that place today, you're a franchise consultant, you help people get into the business of owning a franchise and running these franchises. We'll talk a little bit more about that later. But from this place that you're in today, what is the vision of the life that you're looking to create? What are the things that you want to do? How do you want to spend your time and, and talk to me a little bit about like, what this is all about? Not only your work, but you know, on the personal side,
Kim Daly 5:57
I'm already living my dream. I mean, I have bigger dreams for my future. But I cannot dismiss where I am today. I you know, I made a choice when I was 25 years old that I was going to be unemployable. Now, it's kind of funny, because again, my dad would be like, Kimberly, you've always been unemployable. I've always been the boss me, apparently, when even when I was little, so, but I left that job and became an entrepreneur and then made my way back to franchising when I was 29. Mainly because I needed systems and people like entrepreneurship is super lonely. And franchising is very collaborative. And all the things I learned in that first job in franchising, when I stepped out to become an entrepreneur, I loved the freedom and I loved the opportunity, but I needed more structure. And I mostly needed people like successes, fun, but success when you have other people to share it with. It's way more fun. So again, it's just been that the journey from I'm making a decision that 25 That I don't want to work for anybody else ever. And I'm 50 I've never worked for anybody else. I've been completely unemployable since the day that I, I left that job, and just continue to figure out how to use my goals. And what's inside of me to create the life that I have. And the life that I have is set up for me to work when I want as much as I want make as much money as I want. But to be able to have that balance. I'm a mom, I have two teenage sons, but I'm demonstrating to them the life that was also demonstrated to me and I talk to my kids about business ownership, I hope they never want to work for anybody if they do do it, but I can almost guarantee they're going to come back to Hey, mom helped me figure out how to do this for myself. So my future goals are very much the same. I mean, I'm a quality of life junkie. I just I thrive on the freedom. And I tell all of my candidates, you know, look, I'm not quote selling you franchising. The outcome is freedom. It's personal, professional and financial freedom. Franchising is just a great vehicle to drive those outcomes. Franchising changed my life. That's why I'm so passionate about it. And that's why I help I want other people to see how franchising can change their life if they're looking to start a business.
Steven Pesavento 8:20
Yeah, so you found something that you're passionate about you want to share with other people in the world? You know, you're kind of on this path towards, Hey, how can I be the person who helps introduce a strategy that can lead somebody closer to having more of the life that they want? I can absolutely see that. So have you achieved financial freedom for yourself?
Kim Daly 8:42
Um, so how do you define that, I guess, for my own sense of freedom, like real freedom would be for me would be having passive programs that contain all of the knowledge that I know that people are buying, and then I'm able to run masterminds and I'm able to do speaking engagements to big groups of people. I'm not there yet. I'm still in the day to day, you know, talking to fat couples and individuals who want to explore franchising. But this has been such an amazing run for me. And it's like, over the last 20 years that I've honed my skills as a franchise consultant, I literally have a PhD in human psychology and how people make decisions like I could write a book,
Steven Pesavento 9:25
right cut in, you're in a place where you're making great active income, you make a ton of money, selling franchises, helping support people get into that space. But from a passive income standpoint, you have yet to put yourself on that path towards having enough passive income to support the life that you want. Is that what you're saying by financial
Kim Daly 9:44
freedom? That is what I'm saying. But I do have passive income. I'm invested in real estate syndication, like all the things that you know, the people that I'm helping are doing still, you know, self storage facilities in syndication. I have infinite banking policies. So If I'm doing the things to build passive income, I'm I'm an equity owner in a very large company that pays me amazing dividends like more money than most people making a corporate salary. So I have passive income. But my personality, Steven is also not one that, like I made a lot of people who are like, I don't want to work like Kim Daly is never going to not work, right. And it's not about money. For me. It's about, it's about influence. It's about helping other people. It's about doing something meaningful every single day with my time. I'm not a TV watcher, I'm not an idle person, I want to be busy, and I want to be busy making a difference in the world. That's really what the goal is,
Steven Pesavento 10:41
I get I get that from you, I were wondering the same, I have hit that point where I can cover my lifestyle with passive income. But yet I have many larger visions and goals, other targets that I've named along the way that I'm working towards. But even after hitting them, I don't know that I'll ever be in a position where I'm going to stop doing what I do, because I love it. It's fulfilling, it's making an impact. But I think what's more important than then having an end place where you no longer work, is having that vision for the life that you want, which has whatever that looks like for you. So for the audience member, maybe somebody wants to work forever, maybe the other person is in a position where they want to spend all their time with their family. But from that perspective, name, your number, what is the number that you need to have coming in every single month that would allow you to live the life that you want to live and be in that place where you are financially free,
Kim Daly 11:39
I have a number, I would say it would be at least a seven figure number, but probably bigger. And I mean, in terms of passive income, I'm already halfway there. But I still have active income that's bigger than that and growing and I have so much capability to continue to grow, that I don't really have a limit on where it's going to go, I think it's just going to come down to you know, I'm raising kids, I want to create something for them. I want them to leap off of what I've created if they want it. We have visions about you know, wintering in Florida. And I want my kids to be in businesses that allow them to have flexibility. So my grandkids can come with me when I winter in Florida. So there's a lot of vision to all of that. And it takes money to do all of that. And however much money it takes. I'm in and willing to do it until such time as I realize, you know what, I think I'm ready to sort of step back a little bit. But I don't see that happening anytime soon.
Steven Pesavento 12:33
Give me you're in the same place that 99% of people I talked to are I asked them, name, your number. And they say, I don't really have a number. They're successful. They're having a lot of fun. They like what they're doing. And there's nothing wrong with that. But there's a power towards getting clear on what that number is. Because for example, if you needed to create a million dollars a year that would pay you and maybe that number is too small, is that not a big enough number to live the life that you want to live?
Kim Daly 13:01
I mean, I'm already past that. So it's not a big enough number. No, but if you ask me for passive income, a million
Steven Pesavento 13:07
dollars, passive income, there's a difference. And it's really important for the audience to hear the difference. Active income is something that you do, right you have to go make decisions, you own a rental property, you got to be the person to decide the furnace is gonna get replaced. Passive income is the syndications. It's the dividend. It's, it's the recurring fee that comes off of the insurance that you sell or, or some product that you sold at some point in the past. And there's a big difference. And the reason why it's important to have that difference outlined is that, although we can always be on that, we can always be on that, that hamster wheel or that treadmill of always running to keep doing more and more. But when we have that point that we know that the lifestyle that we desire to live is covered by passive income, it gives us the ability to then go and do absolutely anything. And I don't think mindset holds you back at all. But for a lot of people, the thought that of taking the risk of going and starting a business or maybe buying a franchise is something that they fear doing until they get to that point of knowing that if something goes wrong, their family is taken care of.
Kim Daly 14:19
So by your definition that I'm already there, like I don't have to work, I just want to work. I'm so capable, and there's so many things that I can do to help so many people. So by your definition, all of my living expenses are definitely covered by the passive income that I'm already building. But I have much bigger dreams than what I'm currently what I'm currently doing. Yeah.
Steven Pesavento 14:43
What was your out of curiosity? So as people are listening to it, what was your definition of financial freedom
Kim Daly 14:49
financially free? I mean, I guess I feel financially free. Financially Free just means you can do whatever you want. Like I can do whatever I want, right I just choose to want to Help more people and make more money, because there's more things I want to do in the future. But I think covering all of your, you know, like you said, covering all of your living expenses, not having to feel like you have to wake up and go to work or put your time in for money that's probably financially free. But I've been financially free for a long time, I'm in control of every of how I spend my time every day, why wouldn't I be passionate about that?
Steven Pesavento 15:27
Well, it's such a great place to be. And I think it's such an inspiration for others to see that you've gone down this path, you've created that for yourself. And even though you have much bigger vision for what you can create, I think a big mistake, a big, big misnomer about the idea of financial independence that people have is that, oh, well, if I create passive income, that I'm going to be bored, or I'm going to not continue working towards my mission, that's not at all the case, it's more so knowing that you've created something that covers everything you'd ever need, and then some, which only enables you to be able to do the things because I know you're making a huge impact in the world. So what I'd love to talk about, and I think you'd love to share his talk about how you got there, what was it that you did that ended up creating that type of income that you earned, that you were then able to invest into things that that pay you
Kim Daly 16:25
number one of a business owner? So that's first and foremost, right? I made that decision years ago, I think, you know, if you really want to be financially free, you have to own at least one business and I own multiple businesses now. But all of them support my primary business, which is franchise consulting. So what happened was, though, my story is for eight years, I was an average performing consultant doing my thing. And then one year later, back in 2011, I made history in my business. So I went from, you know, same business model, same economy, same Kim Daly, like my skill set didn't exponentially grow one year later, but I created two very different realities. And so in franchising, there's this sort of, like, myth out there that like, it's the franchisors job to make me successful. And, you know, I'm gonna use what other people are doing to create my reality and a franchise. And when I stood in two very different camps from one year to the next, it blew my own mind about, oh, this is how this works. And literally, for the last 12 or 13 years, I have been an infinitely better coach to every single candidate who comes to me, because it's now it's not book knowledge. It's, hey, I'm me, and I did it. And you can do it. And it's firsthand experience that I can share. So what I did, Steven was, as you may even know, it's a shift in my mindset, who was looking at my business in a different way. So there's a lot of business owners who come to work everyday, and they're busy, but they're not productive or effective, right. So I looked at my business, I first I set a really, really big goal that was not based in reality, it was more than three times bigger than anything I had ever made. And that there is magic to setting a really big goal and meaning it. And then I didn't tell anybody what I was doing. There's magic to that, because people would have talked me down from it, people would have said, that's never been done. If somebody had told me if you do that you're going to be a history maker, I might have freaked myself out. So it's better to find out after the fact that I made history then to sort of have that going in. Because the beauty of the first year that I did this, my ego wasn't involved it because nobody knew, I didn't know if I could do it. I just had a goal. I knew what I was worth. And I knew I could do it eventually, I just didn't know that I could do it in one year. And so I put my head down, I focused on only the things in my business that I could ultimately control. And that was really the key when you start focusing on what you can control for getting the rest that really was probably never yours to control anyway, oh my god, the number one thing it does for you as a business owner is it changes your attitude. When you're only focused on what you can control. You're in control. Like when you're in control, you're having fun, and when you're having fun, you're passionate and when you're passionate, you're infectious and who doesn't want to work with people who are like that, you know? So it was a self fulfilling prophecy as I became more empowered by focusing on what I could control and maximizing that, that one thing corrected for a lot of other things in my business. And and so after I made history that first year,
Steven Pesavento 19:38
so just there specifically, you run a business, you're a franchise consultant, and in that business, you do what and how do you go about earning money? Because that's kind of the main place that you earn most of your making money income comes from, is it from that business or do you have more money are that you run? Or is that kind of the main income source,
Kim Daly 20:02
the main business that creates the majority of my revenue today? Right, so I get paid by franchisors. So I offer a free service that helps people learn how to explore a franchise. And if they say yes to a franchise, the franchisor pays me a consulting fee at the end of that process. Yeah, I get paid like that, like a recruiter.
Steven Pesavento 20:23
And then you've taken some of that money and you've funneled it into it sounds like you own some other businesses, you own other franchises.
Kim Daly 20:31
No, 100% of what I do is my lead generation tools that feed this business.
Steven Pesavento 20:37
Okay, that makes perfect sense. So, you've got the main business franchise consultant, you essentially work with folks for free, but on the back end, these franchises, they pay you a big lump sum of money each time one of those deals closes, and they're motivated to do it, because they're going to make a ton of money off that franchisor and the franchisee is in a great place, because they're going to make a ton of money if they run that franchise successfully. And it all comes out in the end. So it's a great example about having a and that's you actually bought into a franchise there as well. Is that correct?
Kim Daly 21:15
It's like a franchise I didn't have to buy into it. But yes, we have a consultant agreement. We're trained by a corporate office, I pay royalties, like a franchisee. So we're set up exactly like a franchise so I can walk my talk as a quote, franchisee I'm not again, and when I'm telling you Look, you're gonna pay these fees, and you're not gonna begrudge the franchisor that I can be like, yeah, because I've been doing it at a maximum level. And I would never bite the hand that fed me right. And you'll so I'm able to talk from my firsthand experience to my candidates. Yes,
Steven Pesavento 21:45
I think that's amazing. And so you've got the franchise consulting business, and then you've invested it sounds like into a number of other things, mostly in the stock market and equity is it sounds like you've done some syndications. Talk to us a little bit about the other types of investments that you've put money into, to then, you know, have that money working for you while you continue to focus your energy on your main business, your money making machine?
Kim Daly 22:10
Yep. So as I've got into this sort of alternative investing world, I took all of my money out of the stock market, except that which was in my, you know, my self employed pension plan. So that didn't want to take the tax hit. But I stopped contributing to that, once I realized that cashflow was really what this was really all about, and having full control over the growth of that and creating tax advantages. You know, once you start learning how the wealthy really get wealthy, it's not in the stock market, right? So that's when I started funneling my money out, I invested in two really sizable Infinite Banking policies to funnel all of my cash flow through that then I take the insurance company's money to go take the money to then invest, you know, like, I made an investment I got 5% equity ownership in a company that pays me amazing dividends every year, I took money from my infinite banking policy and deployed it into that. I took money from my infinite banking policy to invest in I have a couple apartments indications with other people that that's their full time job, right, but I'm totally passive. And some of that diversified in ATMs and storage facilities and mobile home parks. And then some of its in real estate syndication. So I have several of those. So my tax return is getting a little bit complicated. At this point, I have some crypto, I've invested in two crypto mining businesses one brand new startup that I keep saying oh my god, I think I just threw away that money but you know what, you sometimes you're gonna win sometimes you're gonna lose but that was a lot of money. At the time I invested the crypto was going up and up and projected to be you know, like 200 and it was like at 30. So whatever it is what it is, maybe it will turn into something maybe it won't. But I have another crypto mining business that is more established business that is mining for crypto and making some small profits there but hopefully, you know, those will turn into things so that's like the small percentage of my portfolio that's the most risky the rest of it's just you know, paying me monthly and quarterly dividends in those syndications
Steven Pesavento 24:19
and outside of the the the income and the growth and all those other things I assume there's some tax benefits that you receive off of those. Yeah, those make an impact for you and
Kim Daly 24:31
I need tax advantage because my you know, consulting is like there's absolutely no shelter right I mean, I have an incredibly it's almost ridiculous to try to grow the business that I'm in any bigger than it is because all you're doing is just you know, doubling down on the government no offense, I want to be a good patriot but I do my fair share and then some so it as you learn again, you get smarter you realize there's a better way to earn money and invest money and it's just all about a growth trajectory, right. And so long term, I see myself not being so much as a full time consultant, but more in that mastermind running masterminds with franchisees and keynotes with and then creating online passive programs that will help people that are business owners become more successful business owners, and writing books and things like that, that's where that's kind of 15 years will go. And that
Steven Pesavento 25:25
kind of moves you from this place of you make money based on the time that you invest, to get that client over the finish line to a place where you're getting not only fulfillment of helping these people, but you're actually taking all of those skills teaching in a much larger environment. So I think that that is a really smart path. What was it that attracted you to investing in those types of opportunities, moving your money out of the market, and into things that a really run by other people.
Kim Daly 25:57
Um, I met the people, right, I was guest on their podcast, actually. And as I, the first thing that happened was when I met Jim Oliver, who is like the man and infinite banking, and he found me and wanted me to, because he loves franchising and wanted me to help educate his community about wealth building through franchising. And this is like, he's like, the most abundant person I've ever met in my life with the most amazing life story. And I got fully kind of sucked into well, how do you do what you do. And as he told me, he went from, you know, he educated me on his experience and moving from, you know, managing, you know, stocks and people's money that way to meeting Nelson Nash, and then getting into infinite banking. And I was like, wow, that just makes so much sense. And he sort of networked me as we became, as he became a mentor to me, and then a personal friend to me, he networked me into these relationships with people that I could trust for these alternative investments, because that's the key, right? You're not just gonna give 150 grand or 200, grand or 500,000? To somebody that, you know, no, there's got to be some connection to the first set. And so I found some really great people. And, you know, they, they're doing wonderful things with my investments.
Steven Pesavento 27:12
Yeah, trust is such an important part. When it comes to investing. It's like you either need to have, you kind of need both, you need the knowledge to know, hey, is this a good opportunity? Should I be investing in this type of strategy, and you want to have great relationships with those people that you have trust, you almost need to have more trust, because at the end of the day, you're trusting that business owner knows what the opportunity is, and how they're going to then get paid based on that, right. And when you have alignment of interest where they get paid based on success, then you're kind of in the ideal position. And I think from a franchise perspective, there's some alignment with the franchisor and the franchisee they want the franchisee to have success. So what I'd love to talk about because I think it'd be helpful for the audience as they're kind of weighing what some of their options are, what are some of the benefits of going down the franchisee model? And what are some of the trade offs that you have? Because obviously, somebody has the option to create their own business, there's a lot of upsides to that there's a lot of downsides to doing it yourself. But, you know, what I'd love to hear is what are some of those pros and cons of going kind of the franchisee model?
Kim Daly 28:23
Alright, so the biggest advantage to investing in a franchise, if you're thinking about starting a business, is that you're partnering yourself with people who've already done it. So the whole thing when I'm working with people is to find I want you to find your people, like most people who think about a franchise, they think about what they know, they think about what their community needs, we're going to take all of that off the table, it's so irrelevant to your success as a business owner, what really matters is you find people that have a vision for bringing a brand to market, we're able to look at their track record of success to say okay, with based on what they've done in the past, as they explain their future, I'm reasonably sure that they're going to get where they're going, we look at how they're capitalized. So what you're doing is you're buying into their vision for the future. You're finding a culture that inspires you where you can be open and mentored, and feel like these people have what you want. And so you're kind of raising your hand saying, pick me to take your business model back to my community, and help you bring that national brand to market. That's ultimately what you're doing. So you're buying down the risk of starting a business because you're partnering yourself with people who've already figured it out. They've created the tools, the marketing, the training, the technology, you know, they have national buying power, they created all of that. So it's more turnkey, versus an entrepreneur who has an idea and then has to stop and create all of those tools, which is inevitably what leads 90% of startup businesses out of business. So that startup statistic of failure, it's not owned in franchising, because when you invest in the franchise that's already proven, it's already made it past that statistic, right. And now they have something that they can replicate that they can, quote, sell to you, and then coach and mentor you. So to help bring their bigger vision to market, which is to build this national brand, using other people's money and time.
Steven Pesavento 30:25
Yeah, that it makes sense, because I think one of the biggest challenges of entrepreneurship and I've been at it for for over a decade, I know you've been at it for a long, long time as well is that when you're an entrepreneur, you're the creator, you are the person who creates something out of thin air. Now, you might model somebody else's business, you might do something that's already proven, but you're coming up with the systems and the process, and the branding, and the name recognition, and hiring and all of these different pieces. And there's a lot of responsibility. And there's a lot of skills that you need to understand as a business owner. But I think the appeal of a franchise is that it's a business in a box, you're essentially buying a business that's proven. And in exchange for doing that you're gonna pay the franchisor a ton of money, right off the top line revenue or off the profit, but it's good because you've got that partner. And so from my understanding, and tell me where I'm wrong here, it really comes down to choosing the right franchise or the right franchise to actually buy into, because what I've heard is that there's a number of these franchises that you can buy, and then you can make a an okay salary, essentially, you can make a couple of $100,000 a year, but you can't really scale into something larger. How do you avoid that? How do you avoid picking the wrong franchise and picking one that is going to set you up for the kind of life you want? Whether that's maybe being able to step away passively? Is that even possible in a franchise? Let's talk through a couple of those points.
Kim Daly 31:53
I love all those limiting beliefs. Did you see me first great when you said pay all those fees? I love it. I love it. And this This is exactly why I have a business and a YouTube channel. To help dispel all of these myths about franchising, you can absolutely build a franchise and scale it and build wealth. I have interviewed franchisees on my YouTube channel, one guy comes to mind in four years, he took his global leadership skills from JP Morgan put it into a restoration franchise and build a company that was doing $21 million in revenue. So when the problem Steven is when most people think about franchising, they think about Jersey Mike's and Chick fil A. So I am one of if not the top consultant in the United States and have been for many years, I am not showing you food, if I can help it, I'm going to lead you away from brick and mortar. So you're what you said about having, you know, kind of just buying yourself a job income. It's kind of true if you're looking at brick and mortar opportunity. Because when you have the four walls, there's a lot of asset to the four walls. But the downside is you have capped income because people are not going to drive way out of their way. So the scale has to be through multiplying the real estate, which can get very expensive, right? When we look at something that's territory based where you're serving homeowners, or you're serving business owners in a community, and you buy the potential scale of two or three of those territories to where you can triple the population that you have to serve for only an additional franchise fee versus a whole nother build out of another store. Right? Then you have the potential to earn. And really in a lot of these more territory based franchises, they come with more of a feeling of unlimited earning potential, because at first you're gonna go wide, but oftentimes you can come back and go deep. So let me give you a specific example. Let's say that you have a roofing franchise right a roofing company. I did not even know that roofing I would be qualified to own a roofing franchise. A roofing franchisee is not climbing roofs, installing roofs, right or even selling a roof right? A roofing franchisee loves the fact that he's in a business that like pretty much everybody needs its long term sustainable and at some point your roof is going to need to be replaced. So if I can build a quality reputation and get to you first before my competitors, I can win that job. If I can bring in technology, put a drone up on top of your house instead of having somebody climb up there and take pictures of your roof and show you your actual roof and bring transparency to the homeowner and the insurance company who's ultimately probably maybe going to pay for that roof. If there's like damage, then we can bring more professionalism and integrity to what we're doing. We can raise the bar and we can bring the roofer guys who are great at their job is to do the work. But as the business owner we can manage as a sales team that's going out and driving the sales process bringing professionalism and transparency to the customer we can manage vendors, we can manage contractors. So we can be the CEO running a multimillion dollar roofing company with no knowledge of roofing, you get it. And that is going to be true in every trade in franchising, and there's so many other examples. But that's a business that when you look at the size of the territory, let's say they award you 250,000 People for one territory, but the average franchisee buys three. And then you go out and you validate with the top guy in the system that did nearly $2 million his first year in business. And he tells you, yeah, we put on 200 new roofs last year. You see what I mean by that feels unloved?
Steven Pesavento 35:38
Yeah, I think and that's that's the big thing I was really teeing you up for was because I think there is a, there is a belief within the franchise world, but specifically around the food franchises is where people hear most about this. But there are people who are buying food franchises and making millions of dollars or people who are buying trades, franchises are making millions of dollars. At the end of the day, what it really comes down to is having a great person on your team who can help you understand what is the vision that you want, what do you need to earn, what kind of business you're looking to work in, and they can help filter that because it's just like going into an investment anything else you've got to select the right opportunity. If you just run out and buy a franchise, you start running a Smoothie King, you might be unhappy at the end of the day, if that's not the lifestyle that you were looking for that once you agree,
Kim Daly 36:34
Oh 100% That's why I have a business right? Because most people again left on their own and I'm not judging, I do the same thing I think about well, I like to work out so maybe I should look at Planet Fitness. But if Planet Fitness is too risky for my you know, comfort zone or, you know, I the skills I want to use every day or the lifestyle I want to have as a business owner doesn't match what I what I tell my candidates is if we lead with passion, it's sort of a dead end. But if you will open your mind, and I can show you an opportunity once you get clear on what kind of money you want and need this business investment to make for you. And what is that work life balance that quality of life that you're seeking to get to? And to your earlier question, can you start part time, yes, a business will never be absentee. But it can be semi absentee. That means the owner is part time, but they have a full time manager. So we can start with these goals. And then with my knowledge and relationships of franchisors and the culture and what they're looking for in their ideal candidate, I'm able to go from the three or 4000 that are out there down to a very small select group, bring those to you, and then coach your mindset on how to think about it. So my average candidate is only going to look at three to five concepts to find the perfect franchise and they're going to do that in one to two months versus left to your onto your own devices. You don't know what you don't know, you don't even know you know how to ask the right questions. You maybe you have to go through 20 franchises just to sort of get your bearings, right. I don't even know how you would do that without someone like me. Yeah, it's
Steven Pesavento 38:08
so necessary. And, you know, I really believe that at the end of the day, the key to success is building a great team, great team of advisors, mentors, attorneys, CPAs, coaches, all the types of people that can help support you on your journey, whether you're gonna go build a business, whether you're gonna take the money you earn and invest all across that board, you need to have those right advisors around you to really be successful. So I've got one more question left, that we're going to wrap up on. This has been phenomenal before we do tell the audience how they can get in touch with you or where they should go to follow along with what you do.
Kim Daly 38:44
Okay, I'd love for anybody to go that like if you have those beliefs like Stephen asking those questions, please go to my YouTube channel. Kim Daly, my last name is Da Li Kim daily.tv over 500 videos, all things franchising, business ownership, you know, pros and cons, those evil fees, like how do we how do we make sense of those and so much more. Lots of great interviews with franchisors and franchisees, all right, they're on my YouTube channel.
Steven Pesavento 39:14
Awesome. This has been so much fun, as we're getting to, you know, understand your financial background, how you have hit financial freedom, some of those mindset pieces and really the vision of the life that you're creating. As we wrap up, I'd love for you to wrap up on this. What is your advice for the listeners who are looking to make a big change in their life? They're looking to take back financial control. What do you advise that they should do
Kim Daly 39:43
first? The very first thing is to get clear on why to write it out. Put it in front of you get your spouse on board if they're not doing this review, right know why you're not going anywhere but the more clear you are on your or goals and why you need to make that change, the easier the rest of the process will be, especially when you find the right investment. And you're ready to say yes, you won't second guess yourself and doubt, because you're stepping into the unknown, you will be focused on that goal of what you're trying to achieve knowing that this is the only way to get to those goals that you want.
Steven Pesavento 40:23
This has been so much fun. Kim Daly people absolutely go follow along. Learn more about this if it's appealing and you're interested in stepping into owning a business and kind of going down this path I look forward to having you on again. And thanks so much for listening. Today's episode is sponsored by von Finch capital. If you're interested in investing alongside me in the same type of real estate opportunities that I personally invest in that head over to Vaughn Finch capital and join their private investor network, you can do so at Vaughn finch.com/invest. Join me on that next deal. I look forward to seeing you on the inside. Thank you for listening. If you like what you heard, make sure to rate review, subscribe and share with a friend. Head over to the investor mindset.com to join the insider club where we share tools and strategies from the top investors and entrepreneurs and how they take it to the next level.