December 30th, 2017 - Franchises Under 10k
The advantages and disadvantages of online franchise opportunities
Going into business by buying a franchise is becoming increasingly popular with people who want to own their own company, but want a quicker way to set up without starting from scratch. When you buy a franchise, you are buying a proven idea and established systems, so someone else has already done the initial hard work for you.
Owning a franchise doesn’t have to mean taking on a physical location, however. Many online franchise opportunities can be run from the comfort of your own home, and there are many advantages to doing so.
Browse our list of online franchise opportunities and start your own business today.
The advantages of buying an online business franchise
Setting up an online business franchise usually goes hand in hand with working from home. The two combined can produce many distinct advantages. Here are just a few:
You choose your hours. Running an online business gives you the freedom to decide when you want to put the hours in. You could choose to work when you are most productive, or around family commitments. You also have the option to work early in the morning or late at night to accommodate overseas clients in different time zones.
It reduces overhead costs. Not having to pay rent on a physical office or retail space can save a huge amount of money in overhead, which can be helpful in the early stages of setting up a new business. It also allows you to either offer more competitive quotes than competitors who do have these fixed costs, or take the saving to the bottom line in increased profits. You will also be better off by not having to commute, reducing the amount you spend on gas and wear and tear on your vehicle.
There is a large range of cheaper options. There is a huge choice of online franchises under 10k, and some are even available for as low as a couple of hundred dollars. Due to lower infrastructure costs, franchisors are able to offer opportunities at prices far below those of traditional “brick and mortar” businesses.
You are globally accessible. With an online franchise business, the whole world is a potential market place. You can target and reach customers in any location, opening up endless possibilities. Depending on the type of franchise you buy into, operating online can also mean that you are open for business 24 hours a day, 7 days a week, so you can be earning revenue even while you sleep.
You can be more productive. Starting any new business is hard work and can mean putting in a lot of hours during the initial startup period. Working from home means less time spent sitting in the car commuting, and that means more time available for work. You can spend this time chasing revenue and developing the business.
There may be tax benefits. If you run a business from home, you may be entitled to claim certain tax benefits. The IRS has produced a video explaining all of the possible deductions that may be available.
It allows you to test the water. It’s a sad fact that fifty percent of new businesses fail in the first five years. By starting out with online franchises under $5000, you can test whether an idea is viable, without being tied into office or retail space leases, and without risking huge sums of money.
The disadvantages of buying an online franchise
Whilst there are many advantages to buying an online franchise, there are, of course, some disadvantages. Knowing what they are can help you to be prepared for, and avoid any potential pitfalls. Here are some of the common disadvantages:
Online businesses are not suited to everyone. Before searching for online franchise opportunities, you need to look at your own skill set and personality. Online businesses rely heavily on internet-based marketing so you will need to have a good understanding of the online marketing methods currently being used. This is an area that is always changing and the pace of change can be rapid.
You may also need some knowledge of web development, so if you are a complete technophobe, it would be wise to consider another option. Online businesses are commonly run from a home office so you will need to consider whether you are suited to this.
To effectively work from home, you will need to be highly self-motivated, organised and disciplined. You will also need to be comfortable with the potential isolation of working alone.
The market may be crowded. Depending on the type of business you go into, you may find yourself competing with many other similar businesses and getting lost in the crowd. In theory, this should be less of an issue with a franchise as they are usually more established businesses with a recognised brand name.
However, if you are aiming to get started with a very cheap franchise, you may find that this is not the case and will have to work with the franchisor to help establish the brand.
You lack interaction. Not everyone trusts the web and without being able to meet customers face to face, you lose the ability to build rapport and gain potential customers’ trust. Again, being part of a franchise should mean that your brand is already recognised and trusted, but if you are entering the market with a cheaper, less-established franchise, this may not be the case.
Where to find cheap online franchise opportunities
Head over to our website where we have a carefully curated list of great value online franchise opportunities. Each listing contains all the information you need to shortlist your ideal businesses. Once you have this, let us know, and we will send you further information on each franchise for you to review and make your final selection.
Take a look at our curated list of online franchise opportunities and start your own business today.