December 30th, 2017 - Franchises Under 10k
How to start your own home business with low cost franchise opportunities under 1000 dollars
For many people, running their own business is the epitome of the American dream. Many more desire a job where they can work from home, but the cost of starting a new business can be a huge obstacle. Fortunately, with low cost franchise opportunities under 1000 dollars, starting a business could be more affordable and accessible than you think.
Franchises in particular are a good route into business, as they are based on a tried and tested formula so the hard part has been done for you. This guide takes you through the key steps and considerations in starting your own home-based franchise business.
Start your own home based business today. Browse our curated list of home based franchise opportunities.
The benefits of buying a home-based franchise under 1k
There are so many benefits to owning a home-based franchise under 1k. Not having to commute to work means that you gain time every day and so can be more productive. You are your own boss so can choose the hours you work and when you work them.
Taking on a cheap franchise to start means that you are able to test whether a business idea is going to work before investing larger sums of money. Working from home will also save you money, as you will not have to rent a physical office or retail space, as may be the case with higher investment franchises under 10k.
A home office may even entitle you to tax benefits. With all of these things considered, it is no surprise that more and more people are choosing to leave the rat race and take the home-based entrepreneurial route.
Where to start with low cost franchises under 1000 dollars
When looking at low cost franchises under 1000 dollars, the temptation can be to jump right in. Before parting with any money, you should work through the following questions. Doing your homework now will save you time and money in the long run.
Are you suited to home working? Not everyone is cut out for working from home. You need to consider whether you have the discipline, motivation and organizational skills necessary to work effectively from home.
What are your financial goals? Are you able to meet them with such a low investment, or would you be better off extending your search to franchises under 10k?
What are your talents and skills? Think about what you are naturally good at and what you enjoy as this will form the basis of a successful business venture. Also think about the skills you have acquired from your previous employment.
Most franchises will offer training, so it doesn’t matter if you don’t have industry-specific experience, but it helps to have a good business mind and an understanding of sales, marketing and customer service.
Can you open your business at home? You should check with your city, as most have zoning laws that limit how buildings can be used in different geographic areas or zones.
Once you have your answers to these questions, it is time to look through our directory of low cost franchise opportunities under 1000 dollars and start identifying the franchises that provide the best fit.
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Researching low cost franchise opportunities under 1000 dollars
Once you have your shortlist of low cost franchise opportunities under 1000 dollars, you need to dedicate a considerable amount of time to thoroughly researching each one. The best place to start is with the Franchise Disclosure Document (FDD). The FDD is a legal document that contains specific information that will enable a potential franchisee to analyse the franchise and make an informed decision.
Every franchisor is required to provide a potential franchisee with the FDD no less than 10 days in advance of signing the franchise agreement. It is not a good sign if a franchisor is unable to produce an FDD, and you should consider not proceeding with that opportunity.
The FDD contains information on the initial franchise fee and any ongoing royalty payments, geographical limitations, advertising funding, an earnings disclosure and information on current franchisees and franchise success rates. You will want to ask the franchisor some questions to enable you to compare different franchises.
When you are starting out with a very low cost franchise, you would not expect to receive the same level of support than if you were purchasing a franchise for $50,000, but even so, you can still use these questions as a way of comparing each opportunity.
Ask the franchisor about franchisee start-up tools, what support and training is available and whether it is ongoing, can you terminate early, and the initial fees and continuing payments. It is sensible to take legal advice when reviewing the FDD.
It is also wise to talk to as many current franchisees as you possible can. Most will be happy to tell you about their opinion of the franchisor, their struggles and profitability. This will give you a more objective view of the franchise than simply relying on the sales information provided by the franchisor.
In addition to you asking the franchisor questions, the franchisor will no doubt also want to vet you to ensure that you will be able to successfully run the business. Be prepared to answer questions on your employment history and relevant skills.
Once you have selected your franchise and competed the paperwork, you will need to apply for a business license. Your city hall or county government will be able to let you know what type of license you need.
It is also advisable to form a limited liability company or a corporation. This will protect you from being personally responsible for business liabilities, should anything go wrong with the franchise.
When you have all of the necessary documentation in place, prepare a space in your home. It is good to dedicate a room to your business, both psychologically and also to gain the tax advantages of working from home.
To get your business up and running, enlist the help of friends and family. You can use your social media accounts to spread the word and also set up new social media accounts for your franchise. Not only do people expect businesses to have a social media presence, it is also free advertising.
Think about who you want to do business with and then work out how to target them. For example, if you are in the dog grooming business, you might want to attend pet-related events in your local community. It may also be worth attending trade shows. After this, your success will be down to hard work and perseverance.
Take a look at our list of low cost franchise opportunities and start working on your new home business today.