Whether you want to deliver small packages for Amazon as a sole proprietor or work toward owning several cleaning businesses, there are multiple options for owning a franchise.
Your dream of buying into a franchise is popular among entrepreneurial-minded Americans. Nearly 4% of businesses in the U.S. are franchises. The buy-in for many of these small businesses is $15,000 or less, making it financially accessible for those without a lot of money set aside.
What is a franchise business? It's a business where the owners make money by selling the rights to their logo, name, and complete business model to third party operators. When you enter into a franchise agreement, you have access to the tools you need to start doing business quickly.
One of the main advantages of buying into a franchise is job satisfaction. The Franchising@WORK 2019 Employee Engagement & Compensation Report notes that 90% of franchise employees say their job is "rewarding and satisfying".
This may be an ideal small business for rural areas, as well. By providing a much-needed service to an underserved market area, a franchise could be your key to entrepreneurial success.
Buying a Franchise vs Starting Your Own Business
Many people who want to be their own boss choose a franchise business because they don't want to reinvent the wheel when it comes to day-to-day operations. When you start your own business, you have to develop every process from scratch. The trial and error process of getting things right could take years, which is why becoming a business owner can be financially risky.
The franchise business model offers a proven set of practices, turn-key marketing, and a training program that allows a new franchise owner to potentially reap the financial benefits of entrepreneurship soon after opening the business. Even small-town franchises can be highly successful, setting the owner up for a lifetime of financial rewards.
Here are some examples of franchise businesses that succeed in small towns:
- Home inspections
- Text marketing
- Concrete beautification and protection
- Home cleaning service
- Carpet cleaning
- Mobile windshield and glass repair
As a small business franchise owner, you'll also have the advantage of a support network of other franchise owners who work with the same brand. This means you can share challenges and solutions with people who are in a similar situation. A franchise investment presents a lower risk than starting your own business if you read and understand the franchise agreement, evaluate the need for your service or product, and work hard to make your customers happy.
What You Get with a Franchise
It's possible to buy a highly-rated turnkey small business franchise for less than $40,000. The Franchise Business Review rates the best franchise investments and opportunities. They provide consumers with comprehensive reviews of franchises, including small business ideas with a low startup cost. Some of their recommendations include cleaning and maintenance businesses like Oxi Fresh Carpet Cleaning and Executive Image Building Services. Both of these franchises are available for less than $40k.
High Success Rate
When you enter into a franchise agreement, you have a much better chance of success. The established concept and support network is well-established, making everything from marketing your franchise to making a profit easier than if you start a stand-along business on your own.
Equipment and Supplies
Many franchise businesses include the necessary equipment and supplies in their package. This means that you'll have immediate access to all the tools you need to give your customers the best possible service.
Service-based businesses like construction and cleaning often naturally have a low overhead. There's no need to maintain a high-profile retail location. Many small-town franchisees operate out of the owner's home.
In some cases, you may be eligible for franchise financing, which can help spread out the initial costs of opening your business. Many franchise owners are able to establish themselves in the community in just one to three months.
Proven Business Plan
As a franchise owner, you won't have to worry about branding, developing a marketing campaign, or creating a price structure. These aspects of the business are ready to go as soon as you finalize your franchise purchase. There are some things you'll have to provide, however.
Your franchise agreement has the details of what's included with the turnkey operation and what the business owner is responsible for providing. For example, as a franchise business owner, you'll provide your own business insurance. There may be local ordinances or state laws about how much and what type of insurance you'll need. The franchise may have rules about insurance, as well.
Franchising Offers a Low-Cost Way to Supplement Income
You don't have to dive into owning a franchise full time. In fact, if you offer a service that you can perform any time, like home remodeling, construction, or office cleaning, you can supplement retirement income, create a lucrative part-time business, or try out owning a franchise to see how it suits you.
Even if you currently work full time, you can start a part-time franchise business on the side to find out if it has the potential to meet your financial needs. Transitioning from working for a company to working for yourself by getting involved with a franchise part-time is a great way to test the waters before quitting your job.
Whether you are a part-time or full-time franchise owner, it's important to understand the local laws and ordinances about permits and insurance. They vary widely from one state and town to the next. Some cities require a special permit before you can open any type of business, even if you have a home office. Others may require a minimum amount of liability insurance before you can advertise your services.
Your business insurance doesn't have to be expensive or complicated, though. In fact, you can complete the entire process of getting a quote, signing up online, and getting your certificate of insurance at Next Insurance.