Cheap Sheet
Stumped by the task of finding the perfect budget-friendly franchise? We've got all the answers you need to do your homework right--and spend your money wisely.
Low-cost franchises have become hot commodities. Prospective
franchisees know that if they can choose wisely and start
businesses without the heavy front-end investment of a retail
location, they can increase the potential return on their money.
It's a well-known numbers game. For example, the typical new
restaurant build-out, including franchise fees, can run you
$400,000 or more. That means some serious lender financing for most
people, as in signing a 30-year personal note and putting your
house on the line. You'll find similarly sobering numbers when
building out a franchised muffler shop or a convenience store.
These businesses ratchet up the franchise investment to a level
that puts it out of reach for mere mortals trying to make the jump
into business ownership.
That's where low-investment franchises come in. This
category includes perfectly robust businesses that can be run from
inexpensive office spaces or executive suite arrangements, or even
from home offices. Maid services, in-home care services, magazine
publishing, trademarked product distribution, interior decorating,
auto-mechanic tool distribution and a variety of mobile, van-based
repair services are just a few of the categories. If you can get
into the business for a total investment in five figures, consider
it a lower-end franchise investment.
As with all franchises, however, it pays to assess the stability
of the program and the financial risks you're undertaking. Just
because the level of investment is manageable doesn't make it
low-risk; being able to swing a $45,000 investment doesn't mean
you can afford to lose it all. So here is a nugget of franchise
advice that's worth its weight in pink slips: in a word,
research.
Content Continues Below
With a modest amount of diligent research, you can lower many of
the risks inherent in a franchise business investment. Don't
let the idea discourage you--this is rather enjoyable research,
gathering information that will make you better at running your
franchise. It's asking people the right questions-and it's
an organized way to investigate a serious investment.
Page 1 |
2 |
3 