Most of us have dreamed or even seriously considered owning our own business at some point in our lives, but one factor never fails to cast doubt upon this fantasy – money! Owning your own business is simply a pipe dream unless you’re absolutely loaded with cash, right? Wrong!
The truth is that not all businesses require hundreds of thousands of capital to get started. In fact, some franchises are so affordable that you can get started with as little as $20k out of pocket (assuming you can qualify for a small business loan).
Today, we’ll be discussing 5 reasons to consider affordable franchises. Let’s get started!
1) They are traditionally home-based businesses
In a recent study by Leadership IQ, only 9% of respondents said that they would prefer to continue working in an office full time. This pandemic has certainly changed the way we view work and life in general. One major realization is that we don’t NEED to be chained to a cubicle desk 40 hours a week in order to be productive in our careers.
Unfortunately, not all companies agree and many will find themselves required to be back in the office full time as things open back up.
One of the greatest benefits of owning an affordable franchise is that the vast majority of them can be operated from your home office. Since they do not require a massive workforce or overhead, there is typically no need for you to invest in a physical office.
That means less time commuting, fewer distractions, and an overall better work-life balance where you can spend more time with friends, family, and pursuing your hobbies!
2) They are scalable given you are not constrained by a brick & mortar space
While owning a physical office/storefront can certainly provide some benefits, you can also find yourself limited when it comes time to scale/grow your business. How are you going to hire more office employees if you don’t have room for any more desks? What about storing an increasing amount of product inventory?
The beautiful thing about affordable franchises is that many of them are serviced-based businesses that don’t require a physical location. Without the confinements of a brick-and-mortar property, scaling your business becomes much more feasible!
You can hire more employees and invest in additional equipment at a pace that is in line with your company’s growth. You can forget about going through the headache of expanding your physical footprint.
3) They tend to have higher gross profit margins, given you have less overhead costs
Another fantastic benefit of affordable franchises is that less capital required means you can start making a profit much sooner than more expensive investments! Not only do these investments allow you to break even more quickly, but the lower overhead costs allow you to continuously achieve higher profit margins. Therefore, you keep a healthy cash flow to support the growth of your business along with your lifestyle needs. Talk about a win-win!
4) They tend to start with minimal employees, and you hire as your business grows
Let’s face it – finding quality employees these days can be a time-consuming and difficult process. Retaining all of those employees can be tough as well. Most of us would much rather focus on the growth of our new franchise than spend half of our time playing the role of an HR manager.
Luckily, affordable franchises normally require a minimal amount of employees when you are getting started. This which allows you to focus on all of the other important aspects of setting your new business up for success. As you grow your business, you hire additional employees gradually as needed!
5) They are service-based and Amazon-proof Concepts
We’ve all driven down Main Street in a small/medium-sized town and witnessed the effects that Walmart and Amazon have had on small businesses. While this can certainly be disheartening to see, it’s important to note that these retail giants have really only made life more difficult for smaller retail companies who rely on selling physical products.
The vast majority of affordable franchises are focused on high-demand services that are both recession-proof AND Walmart/Amazon-proof. Set yourself up for sustainable success by investing in a business that will continue to be in demand for decades!
After learning about all of these benefits, do you think that investing in an affordable franchise might be the perfect way for you to achieve your entrepreneurial dreams? If so, connect with Scott for franchise company investment options that fit this category. We just showcased 5 of these brands in our prior webinar.
If you would like to learn about other trending franchise companies, you’ll definitely want to join our weekly webinar that gives you a front seat with the franchisors. Our Franchise Speed Rounds highlight 5 companies in 5 different industries.
Each company will feature a 5-minute overview presented directly by the franchise themselves. Use this link to sign up and learn more about our Franchise Speed Rounds.