Home based franchises have become more popular as many people have decided to start a work from home business for many reasons. Whether it is to just start their own business, to get out of the commute, spend more time with their families, or have lost their jobs due to the economy.
Many people have had success owning their own franchise, but some have failed miserably. Before you sign your name on a contract, lets go over some basics to save you money, frustration, and time.
What is a franchise? Wikipedia decribes it as "using another firms successful business model. While that may be true, please do not expect the same business model to work in all situations and places. Let's take an look at the pros and cons so you can decide what is best for you.
Home Based Franchises - Pros
The franchise company will set you up in business and train you so you can duplicate their success. Most companies have continuing training and will support you when you have questions later to keep you on the path to success.
Most franchises have a very good success rate, usually around 70 to 80%. Compare this to the failure rate of non-franchise start ups of near 80%. This one statistic is a great selling point for franchise businesses. But be careful, research your company well and make sure you have enough cash to keep your business going while you are building customers.
You will be able to purchase your supplies for your home based franchise from the parent company and share in their lower prices because they buy at bulk. This saves you money as well as time since you won't have to search for good prices.
If your small business franchise company is national known, you will be able to benefit from their national advertising campaign. This will help you bring in customers without having to do much advertising of your own. This allows you to focus on improving your service to your customers.
Home Based Franchises - Cons
Buying a top name franchise is very expensive so make sure you have enough cash for the initial payment as well as your running expenses for at least 6 months. Most franchises require that you pay a monthly fee as well. Consider getting a partner if this is a concern. This would give you some financial breathing room as well as have someone who is as interested in making the business succeed as you are.
Many people do not like the fact that they must duplicate the franchise companies business model completely, even down to the smallest detail. Some feel that they are not actually running their own business but working for someone else. If you believe this may be a problem for you, research a different franchise. Be sure you want to do what they require before getting involved. Remember, this is not a bad job you can quit if you don't like it later.
Consider where you will be running your business. Is there a need for it or is the market already saturated? Will you run into zoning regulations if you are operating it from home? Will you have sufficent parking, if needed? Spend time trying to find reasons why it would fail, and then solve them before you invest.
Check our Best Franchise opportunies pages for more information. And Good Luck!
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