Home based franchises
Franchises come in a wide variety of shapes and sizes. From large restaurants and fast food outlets that require multiple staff and specially designed premises to small businesses that can be run from a home office or van, there are franchises available to suit all entrepreneurs and all budgets. Each type of franchise offers its own unique set of benefits. Some will suit entrepreneurs with large amounts of capital and a desire to see big returns on their investment. Others will be more suitable for investors who want to improve their work–life balance and become their own boss. As franchises are so varied, it’s incredibly important that investors research every opportunity they’re considering to see what type of business suits them best.
Some of the most popular franchise opportunities for entrepreneurs looking for flexible working conditions are home based franchises. Working from home offers franchisees a number of benefits including affordability, flexibility and the chance to work for themselves. If you’re looking to improve your work–life balance, or build a career around other commitments, a home-based franchise could be the perfect solution. Keep reading to find out more.
The benefits of a home based franchise
Many entrepreneurs invest in home-based franchises because of the numerous benefits these types of businesses offer. Entrepreneurs looking to improve their work–life balance or build a career with a relatively low investment are drawn to these affordable and versatile business opportunities.
Low start-up costs
Aside from the franchise fee, the biggest expense of launching a franchise is building, purchasing or renovating commercial premises. The costs of acquiring a specialist shop, restaurant, show room or other business space can easily run into the hundreds of thousands, with added costs coming in the form of staff training and recruitment. Home-based franchises, by contrast, have very low start-up costs. Entrepreneurs won’t need to buy or rent any sort of commercial space and will be able to run their business from their home office.
Although franchisees may need a computer and other basic office supplies, they generally won’t need to invest in any specialist equipment in order to get their business off the ground. These relatively low start-up costs make home-based franchises accessible to a wide variety of investors and give entrepreneurs with little capital the chance to start their own business and be their own boss.
Low running costs
As well as having low start-up costs compared to other types of businesses, home-based franchises also have relatively low running costs. Entrepreneurs who invest in home-based franchises don’t need to worry about paying rent on their premises, paying expensive business rates or commuting to work. Although some people who buy home-based franchises may decide to employ a few members of staff, more often than not these types of businesses can be run by the individual. This means that the franchisee won’t need to pay wages to their staff – something that can take the strain off their finances, especially in the early days of running a business.
From a tax point of view, home-based franchises are even more advantageous. Franchisees who work out of a home office will be able to write off a percentage of their rent, bills and other household expenses against tax, which can make running a new business even more affordable.
One of the main reasons that people choose to invest in home-based franchises is that it gives them the opportunity to improve their work–life balance. Working from home is ideal for those who want to be able to look after children, animals or relatives between nine and five on weekdays. Not having to pay out for these extra care costs can help to make home-based franchises more affordable and give entrepreneurs the opportunity to improve their standard of living. Not having to commute and being able to make their owns hours also helps those investing in home-based franchises to enjoy a better quality of life.
Benefiting from your own hard work
A lot of people make the move into franchising because they want to benefit directly from the hard work they put into a business. Unlike employees who receive the same salary no matter how hard they work, franchisees should see their profit margins increase the more effort they put into the business. This offers the potential to enjoy a significantly higher income, which should grow even more as the business becomes more established.
Although franchisees will be working with the franchisor, they’ll have a certain amount of freedom over the way their business is run. This means that, as well as benefiting from an increasing in income, those who invest in home-based franchises will also be able to have a real impact on their business and its chances of success.
Training and support
The on-going training and support that franchisees receive is one of the biggest benefits of the business model. Franchisees running home-based businesses will be able to call on the expertise and experience of the franchisor. They’ll receive detailed information on how to best run their business, how to source their products, how to train staff and how to market their brand. This expert advice can often prove invaluable in the early stages of setting up a business and as the brand becomes established in the first few years.
A business with proven track record
Unlike entrepreneurs who launch their own ventures from scratch, franchisees have the benefit of buying into a business with a proven track record. The franchise should be able to show that it’s profitable, that it offers a tried and tested business model and that there is demand for the products and services it offers. This takes a huge amount of risk out of launching a new venture and gives the franchisee a much higher chance of success.
Types of home-based franchise opportunities
Home-based franchises are available in a wide variety of industries. Many are businesses whose services and products are only available online. These can include travel agents, accountants and business advice services. Other types of home-based franchises can be largely run from a home office but also require franchisees to go out, meet clients and possibly host events in other spaces. These include business coaching, franchises that offer sports and educational opportunities to kids and businesses that provide cleaning services to domestic and commercial properties.
In most cases, investors won’t need any previous experience in the industry before becoming franchisees. Often, no professional qualifications are required by franchisors either. All most ask is that investors are enthusiastic, dedicated and interested in the industry they’ll be working in. Franchisees will receive the training and support they need from the franchisor when setting up and launching their business. If any qualifications are required, the franchisor will support franchisees in gaining the relevant certificates.