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Starting Up An Affordable Franchise Business

Guest post by: Nick Strong

Article Overview: In times of lean finance, many look for affordable ways to invest what they have in a new business. We look at how best to find low cost, affordable franchise opportunities.

Starting Up An Affordable Franchise Business

In this economic climate, many people are thinking extra wisely about the money they use and are attempting to make cost savings where possible. Nevertheless, a good number still want to consider a change in job direction or have redundancy cash at hand and wish to start up a new enterprise. A franchise business can be just such an opportunity but how does one go about finding a franchise system that could be reasonably priced.

You will discover a good number of franchise opportunities to take on and the obvious response is obviously what's 'affordable' is dependent completely on the total amount of investment or funding that you have available to invest. With this in mind, it's highly recommended to arrange a meeting with the franchise section of one of the high street financial institutions to assess what funding is likely to be available to you. Be sure to have details of any current savings or any liquid capital that you already have, in addition to details of any assets you may have available to secure extra finance if required.

Franchise businesses can vary greatly from as little as a few thousand pounds up to many thousands for some high end retail type franchise opportunities.

Investigating Affordable Franchise opportunities

Many of the more reasonably priced franchises, by way of a low investment level, tend to be home based franchise opportunities. This really is primarily because of the fact they do not have need of business premises lease or hire that saves significantly on running costs. In addition, quite alot of these franchises want lower than £10,000 startup fee to get going with some as little as £5.000. For a variety of affordable options you could start by flicking through the affordable franchises section or work at home franchises section of some of the internet franchise directories.

It should be noted that although a low initial risk may appear an attractive choice it may also be a limiting factor. Well established and popular franchise businesses, may require a bigger initial investment partly because of the extra attractiveness their brand appears to potential customers. It's also best at the beginning with the end in mind, so be sure to look at what you need to achieve financially and determine any franchise system you consider in its potential to help you realize your purpose.

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Article Tags: affordable franchise, franchise opportunities, franchises, low cost franchise



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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]
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