One of the aspects of the decision-making process you’ll undergo will inevitably involve weighing the pros and cons of not only working for yourself, but that of evaluating the option of a home-based franchise.
I am sure by now you have read the advantages of buying a franchise over a non-franchised start-up, so we wouldn’t go into detail covering those points.
This frog blog will focus on a few of the key benefits of investing in a home-based franchise.
Low, Low Cost Of Entry
No store-front or office space to rent, no long-term lease or nagging landlord, usually no large equipment purchases, and typically no payroll expenses or employees to start are some of the very attractive attributes of a business that can be started from your home.
Low Expenses, High Margins
So, you make your first sale or complete your first service, and you make that first business deposit into your bank for your first revenue or income transaction.
But, now you have to deduct your operating expenses.
Great news again! You have very little or low operating expenses to deduct compared to a retail or food franchise.
Hence, your gross operating margins are much higher than a traditional store-front franchise.
Increased Flexibility And Freedom and Family Time
What are the office hours of your new home-based business? Whatever you want them to be – it’s your office and you are the boss. Yippee!
But, a cautionary note here: the double-edge sword of an office based in your home is that you can get into the (bad) habit of either under-working or over-working.
You must consistently prepare a very defined schedule of balancing your personal/family life with the essential business activities needed to have a successful home-based franchise.
Do you have the necessary planning skills and discipline to make this happen?
Got To Love Your New Commute
Saving on gas and car expenses is a huge benefit for many that want to work from home. Your commute will essentially be from your bedroom to your home office, with maybe a brief stop in your kitchen for a fresh cup of coffee or a quick snack.
Not only are you reducing your travel costs, but you will also notice the added benefit from a much lower stress level typically associated with the Monday-Friday morning commute and the evening battles as you return home.
Myth #1 – The more I invest in a franchise will most likely make me more money.
FALSE. Low investment franchises, like the home-based model, can have some very attractive and high returns-on-investment (ROI).
Myth #2 – My home-based franchise will allow me to spend just about all my time at home.
FALSE AGAIN. You will be either selling a product or a service. Either way, you will more than likely need to ‘hit the streets’ and shake a few hands to find some of your customers. Most home-based franchises include a protected territory. It will be you job to work it and develop it. That will require some face-to-face networking and community involvement to help build your local business brand.
The Franchise Frog