Tweet

How Will You Know if a Home-Based Franchise Opportunity is For You?

Written by: Candice Clem

Article Overview: Flexible hours, fantastic earning potential and lower investment costs are just a few of the reasons a home-based franchise opportunity appeals to entrepreneurs everywhere. While some professionals prefer a structured work environment they can “leave at the office,” most others would enjoy the opportunity to be their own boss. Very few people are opposed to making their own schedules and building a lucrative business around their lifestyles. Of course, there are very important considerations and a great deal of research that must be taken into account before operating a home-based franchise business.

How Will You Know if a Home-Based Franchise Opportunity is For You?

Flexible hours, fantastic earning potential and lower investment costs are just a few of the reasons a home-based franchise opportunity appeals to entrepreneurs everywhere. While some professionals prefer a structured work environment they can “leave at the office,” most others would enjoy the opportunity to be their own boss. Very few people are opposed to making their own schedules and building a lucrative business around their lifestyles. Of course, there are very important considerations and a great deal of research that must be taken into account before operating a home-based franchise business.

How will you Handle the Flexibility of a Home-Based Franchise Opportunity?

As any self-employed professional will admit, managing a business has its perks and occasional complexities. Among the perks is a flexible work schedule, which means one that will work around school plays, doctor visits, vacations and life in general. With that, comes the responsibility of organizing a work schedule and personal activities schedule. When working out of the home, it is easy to get caught up in other occupations. For instance, you may find yourself outside washing the cars when you should be sorting through invoices. The fact of the matter is that earning a home-based income takes self-discipline.

As with any Business, Franchises are an Investment

Moreover, franchise businesses have great earning potential. A home-based franchise opportunity offers even more financial benefits because it does not require as much capital. For example, much of the investment involved in operating a business franchise goes into the location. With a home-based franchise, this cost is eliminated. Still, there are some costs associated with running a home-based business. From small items like copy paper and staples to big ticket items like laptop computers and video conferencing technology, there are still costs to consider when running a work from home franchise.

In addition, though many franchisors offer low investment opportunities, there is always some money required to launch a business franchise. Some franchises require a small investment of about $5,000 while others have franchises for sale that require $50,000 or $75,000 of total investments. Additionally, you will need liquid capital, which ranges from about $10,000 up to six-figure amounts.

Of course, the thought of investing should not discourage you from pursuing a home-based franchise opportunity. As with any profitable business opportunity, franchising requires capital. Again, the benefit to you here is that you are not required to invest even more capital in a store. Furthermore, with most work from home business franchise, you do not have to hire employees. You are literally your own boss (and no one else’s).

The Convenience of Working from Home

Along with the lower costs associated with home-based businesses, there are also many conveniences. For example, you office is most likely right down the hall, depending on the size of your home, of course. At any rate, any last-minute work that needs to be done does not have to mean that you will be late for dinner. For those with families to consider, this is a very important feature of a home office. Moreover, home-based franchises are a great way to get children involved in the family business. For instance, has your teenager ever missed out on a family event because of a strict manager and a job that requires evening and weekend hours? Imagine having your teenage son or daughter help with the business, earn a little extra allowance and have more time for family activities and even school work.

Depending on how much you are willing and able to take on, you may have the chance to operate a true family business with a home-based franchise opportunity. While many small business franchises offer low investments and the freedom of operating solo, there are also big business franchise opportunities available. For example, medical staffing franchises that operate online offer multiple levels of participation. Those who want to get involved can simply work as staffing agents or they have the option of running a business franchise that includes employees. While both levels still offer a home-based franchise opportunity, having employees allows the franchisee to reach more potential clients, operate a larger business and thus, generate higher profits.

Which Franchise Business to Choose

Additionally, the type of home-based franchise opportunity you would like to operate should be taken into consideration. For instance, if you are a stay-at-home mom caring for an infant, you would be better served to participate in a medical billing franchise like business rather than a dry cleaning business franchise. Medical billing allows you to work around the clock seven days a week, which enables you to work around nap time, feeding schedules, etc. Meanwhile, a home-based dry cleaning franchise involves a pick-up service to clients, which means some local travel for you or for a paid employee. Of course, the dry cleaning business is also profitable and franchisors like 1-800-Dry-Clean and Pressed4Time offer the benefits of working from home.

On the contrary, maybe your reason for exploring home-based franchises is mostly because of the financial benefits and not for the flexibility. Like many entrepreneurs, you may be weary of work from home businesses because there is less personal interaction. However, there are many franchise opportunities that combine the convenience and flexibility of a home office along with the satisfaction of working with people. For example, many advertising agencies such as Adventures in Advertising, Advertising Consultants and AIS Media have made their franchises available online. While much of the communication takes place through the internet, the franchisor also schedules face-to-face interviews with potential clients. This allows you to enjoy personal interaction with clients and still perform most of you work-related tasks from your home office.

Still, if your ambitions involve more distant journeys, home-based travel business franchises may appeal to you. Like advertising companies, travel franchises are also making their way into home offices across the nation and throughout the globe. Franchise businesses such as Cruise Holidays and Cruise Planners have franchises for sale that make this exciting franchise opportunity available to ambitious entrepreneurs like you. So, if planning the perfect family trip or a romantic getaway peeks your interest, the travel industry may be the perfect franchise opportunity for you. Furthermore, most franchisors offer travel to their franchisees at a discounted rate, allowing you to plan your very own escape when you need a break.

Before you Franchise, do Preliminary Research

Of course, no matter what reasons you have for exploring home-based franchise opportunity, the best way to determine whether a franchise is right for you is to thoroughly research it. Ask yourself whether you think you have the self-discipline it takes to be your own boss, determine how much capital is available and how much of it you are willing to invest and gather information about various industries allowing you to work from home. Of course, it is essential that you choose a home-based franchise opportunity that helps you accomplish your goals as an aspiring franchise owner.

Related Articles
  Homebased Business Opportunities
  Why Use a Franchise Consultant?
  How to find the best franchise opportunity for you!
  Internet Marketing in 2008
  Franchises Versus Licensed Business Opportunities

Article Tags:



Related Forum Posts
Fed rate cuts . . . - So just what do the newest Fed rate cuts mean to Franchise and Business Opportunity investing? Is it immediately felt? What timeframe do you think, or rather, where are we in terms of new vs. existing business investment? A similar question can be composed for the economic stimulus checks - will they a have any effect if consumers spend a little $$
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Marketing & Sales tools – going back to basics

Remind Me...

Building a Business From 30,000 Feet

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.