Low cost franchise opportunities may not be as shiny as they first appear
I’m getting into business for the first time and franchising, especially low cost franchise opportunities appeal to me because if I make a mistake I won’t lose too much money. Any thoughts or advice is appreciated.
Don’t be fooled by costs (low cost franchise opportunities or otherwise)
Yours is a very common scenario; one that can be appropriate or inappropriate depending upon how you conduct your search and make your decisions. Here’s what we mean.
Low cost franchise opportunities are not available because they are cheap or low grade. They exist because the business itself does not have much in the way of brick and mortar, hard assets, or other upfront costs that drive up the cost of entry like, for example, a free standing food franchise. What this means is that specific, very hard work, is most likely going to be required of the franchisee. Therefore, if we assume that the business is one run from home and requires a tremendous amount of phone sales to be successful, you had better enjoy and be good at selling from home. Make sense? Granted this is just one example and there are many types of low cost franchise opportunities, just make a decision based on the way YOU FEEL toward the business.
And one other thought about low cost franchise opportunities. You will find that most are driven either by the training program offered or a particular system (business, marketing, etc.) the franchisor is claiming as unique to their brand. You’ll find those to be the main marketing focus by the franchisor and the reasons being pushed for you to buy. As a rebuttal, remember that training can be acquired in a number of ways and systems can be purchased through schools, books, software or consultants.
Whether low cost franchise opportunities or million dollar plus concepts, be sure that franchising is right for you and the particular franchise is suitable to you. For more information on due diligence and buying a franchising, read here.