Do cheap franchises exist?
7 ways to reduce franchise costs
On your list of things to consider when purchasing a franchise, the price and your finances are likely near the top. You can find affordable franchises and plan and budget carefully for all expenses, if you put your mind to it. By choosing a low-investment franchise, seeking the right financial assistance, be it personal loan or franchise financing option, or making the most of your personal savings, you can become a franchise owner without an abundance of capital. But how?
Here we give you seven ways to reduce your start-up costs and ease the transition to the career of your dreams.
Match your skills to your franchise
Do you have experience as a teacher? Look at tutoring franchises! Did you work in the food service industry for years? A restaurant or food franchise could be perfect! Have you always had a passion for exercise? Fitness franchise options might be just the thing for you! Choosing a franchise in an area you are familiar with means you may not need to devote as much time to training and should be much more familiar with standard practices within the sector. Your skills and expertise should give you an edge in foreseeing difficulties and proactively counteracting them. Overall, this should lower the risk of investing in your business.
Rather than committing all your time to your new business from the jump, a part-time franchise lets you keep your current job — and the income it ensures — while you transition into running your franchise. There is less risk, and therefore less stress, involved with this decision. Once your franchise is established, it also gives you the option to either commit yourself to it full-time or work only part-time for yourself, leaving plenty of time for family, friends and hobbies. You could finally have your ideal work-life balance!
You can avoid costs associated with office/retail space, furniture, IT equipment, and office supplies by working from home, assuming you have many of the necessities already at your disposal. You may also be eligible for tax discounts on specific bills and items required for your work. Besides just reduced overheads, working from home will give you great flexibility in your work hours, allowing you to choose the hours you feel most productive. It could be wonderful for parents, who can work while children nap or attend playdates, but will not have to pay for childcare during the day.
Mobile franchises are ideal for real go-getters, as you can go right to the customers, rather than waiting for them to come to you. With a food or drink cart, for example, you can drive right to a busy area of town or an office gathering, guaranteeing a high-demand for your goods. This will offer you decent flexibility and, as with working from home, enables you to cut down on retail costs. From oven cleaning and delivery to coffee and produce, there are a multitude of franchises that are run completely mobile.
Many people are on the internet daily, so it makes sense that businesses run entirely via the internet are continually experiencing growth in popularity. For franchisees, an online business means no maintenance, cleaning, refurbishing, or rental costs upon start-up or further down the road. It also gives you the option of using online marketing tools — paid search advertising, display advertising and search engine optimisation — to help you find customers/clients without breaking the bank. As long as you are set up with an internet connection and a working computer, an online franchise should be viable solution for you. If you wouldn’t consider yourself tech-savvy, just look for an opportunity that provides training!
How you finance your business can have a great impact on its profitability in the grand scheme. If you take out a bank loan, you may have to pay high interest rates and charges, unless you can negotiate a good deal. If you borrow from family or friends, however, you may not have to pay interest and will not have to be as concerned with making payments on firm deadlines. Looking into grants for new businesses is another option, which could mean paying back a lot less in the future. The less interest and fees you can pay, the sooner your business will be putting money straight into your pockets.
If no other options appeal to you, there is always the choice of low investment franchises. We provide a list of low investment franchise opportunities, all of which detail the financial investment required. Some even offer financial assistance for qualified applicants. Under this filter, all franchises have an investment under £15,000 and many are under £5,000 — some begin lower than £1,000!