Great Reasons to Start With Low Cost Franchise Opportunities
Franchising includes just about every business category imaginable, from high cost hotels and restaurants, to low cost franchise opportunities such as vending machines or cleaning. For many people exploring franchising for the first time with limited capital, a modest or low cost franchise is the best way to start exploring.
What’s great about a franchise under $10K, such as maid service, is that you can begin with one location and then potentially build and grow to become a multi-unit operator. Many multi-million dollar cleaning franchises started as single locations at the beginning.
There are also smart business owners that diversify and own a couple of different franchises, opportunities under $10K are a great option in this case. It all depends on what your goals are in the long-term. As a franchisee, you’re in charge of your destiny, so choose the industries that have longevity, interest you, and play to your personal strengths. If you enjoy customer service and building relationships, there may be some low cost franchise opportunities that will allow you to utilize those skills more than others. Maid service franchises often excel when the owner is naturally customer oriented.
Take Advantage with a Low Cost Franchise
A big benefit of franchising comes from taking advantage of tried and tested systems, using trademarked names and logos, and having a successful support network around you. Of course, not all franchisors can offer the same benefits, so it’s vital that you get to meet the team in person before making a final decision. Low cost should not equate to receiving lesser quality support, make sure the franchisor is committed to your success.
Although a franchise under $10K sounds good on the surface, make sure you have looked at the overall cost for opening and operating the business. Are there any expensive requirements in the franchise agreement, such as the need for office space, company vehicles, uniforms and supplies that must be purchased only from the franchisor? How much flexibility is there for you as a franchise owner? Will you need to pay for support, or perhaps sales calls?
A true low cost franchise should have low operating expenses that allow you to focus on investing profit back in to the business for growth. With that said, a new franchisee must be realistic in the goals that he or she sets. A franchise under $10K will grow faster with a fully involved owner, versus a part-time owner. There are some franchisors that will require full-time effort from the new franchisees, so it’s worth having a discussion about your availability early on in the process.
If you are a military veteran, ask about special discounts that might be available for you (or possibly your partner/spouse). Veterans make good franchisees as they tend to follow guidelines and are good at planning and implementation. Customers like to support those that have served their country, and that community engagement is very important when opening a new business.