Why “Lower Risk” Is Often Misunderstood in a Waxing Business
And why the wrong assumption causes more regret than failure
Many first-time owners choose a business model because it feels “lower risk.”
That feeling is understandable — but it’s often based on a misunderstanding of what risk actually is.
In reality, franchising and independent ownership redistribute risk, rather than eliminate it.
Risk isn’t one thing
Risk is not just financial. It also includes:
- Commitment risk
- Flexibility risk
- Emotional and mental strain
- Exit constraints
When people label one model as “safer,” they’re usually focusing on one dimension and ignoring the rest.
How franchising shifts risk
Franchising often reduces uncertainty early. Systems exist, processes are defined, and expectations are clearer.
That shifts risk toward:
- Fixed commitments
- Limited ability to adjust
- Dependence on external decisions
- Longer unwind timelines
The risk becomes more predictable — but also harder to escape.
How independent ownership shifts risk
Independent ownership introduces more variability upfront. There’s less structure and more guesswork early on.
That shifts risk toward:
- Decision accuracy
- Timing
- Personal execution
- Emotional resilience
The risk is more volatile — but often easier to reduce over time with experience.
Why misunderstanding risk leads to regret
Owners rarely regret working hard.
They regret:
- Feeling trapped
- Losing optionality
- Discovering too late that the model didn’t fit
Those regrets usually stem from misunderstanding where risk would show up day to day.
A better way to think about risk
Instead of asking which option is “lower risk,” ask:
- Where does the risk live?
- How reversible are my decisions?
- How much optionality do I want later?
Those questions lead to clearer choices.
Final thought
Risk doesn’t disappear. It moves.
Choosing a business model is about choosing which risks you’re willing to carry.
