Is A Low Cost Franchise My Best Bet For Starting A Business?
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 common dilemma. The answer to which depends on two things. What type of business interests YOU and how you conduct your search and make your decisions. Here’s what we mean.
Low cost franchise opportunities are not available necessarily because they’re low grade. They generally exist because the business itself is not costly to enter. A free standing food franchise on the other hand demands more money. It’s going to be heavily weighted with brick and mortar and other items that drive up initial and ongoing costs. In the other direction, a franchise might be low cost because it’s sales driven and even homebased. Naturally the cost of entry is going to be less. (By the way, if that business is homebased and sales driven, you had better enjoy both of those things.) Granted this is just one example, but there are many low cost franchise opportunities that can make sense. Just make a decision based on the way YOU FEEL toward the business and if your research shows franchisee success.
The basis of most low cost franchise opportunities
And one other thought about low cost franchise opportunities. You’ll find that most are driven either by the training program offered or the particular system (consulting, marketing, etc.) the franchisor is claiming as unique to their brand. But note, that training may be acquired in a number of ways and systems can be purchased through books, software and/or consultants. A franchise is often NOT the best road to travel if you have a skill set (sales) and can apply that skill to a particular product or service. If you have those attributes, why pay a franchise fee and continuing royalties for something you can do on your own?
Whether low cost franchise opportunities or million dollar plus concepts, be sure that franchising as well as the particular franchise is suitable to you. For more information on due diligence and buying a franchising, read here.
Last, but not least, the two most important things you must discern are these: Is the business I’m choosing going to be personally enjoyable, and if it’s to be a franchise, is it a quality franchise? Do your due diligence. The Focus Program For Emerging Entrepreneurs will help you will these and many other issues.