Franchise Prospector » Money & Financing
Investigating Low-cost Franchise Opportunites
Money & Financing
One of the biggest mistakes that can be made by a potential franchisee is underestimating how much he or she can actually do with the limited funds at hand. While many see certain franchisors offering stores only to people willing and able to invest $100 to $250 thousand, there are countless opportunities available to people who have only, say, $10k to $30k in the pocket. Indeed, there is a variety of tools and strategies that a low-investment entrepreneur can go use to make the small business franchise work, and it is wise to remember that creativity plays a key role in helping the investor succeed.
First of all, it should be called to everyone's attention one of the often-ignored phenomena the business world - all franchises are not created equal. That's right, while the entrepreneur with only $15 thousand in to invest may be put off by the $200 thousand initial franchise fee requirement for a popular restaurant, by no means should the search end there.
That's because franchising with next to no money is a definite possibility, but can depend highly on the industry targeted. Investing in a cleaning service, for example, is one of the cheapest ways to go and oftentimes yields a great rate of return for one's small initial investment. Franchisors such as Jani King, Merry Maids, Service Master Clean and CleanNet USA, Inc. may offer their franchises for as little as $4 thousand (although the price tag can also go up to $30 or $100 thousand), making this an extremely well-maneuvered investment for anyone interested in this line of work.
But how come these franchises are so cheap? The real reason that a janitorial outfit is so cost effective is the minimal overhead required. Instead of requiring complex equipment and the continual purchasing of food or retail supplies, a janitorial service can set up shop in a modest location - even someone's home - and send its employees out to commercial and residential sites where most of the work is done.
Similarly, companies doing business in other industries are able to minimize overhead costs and deliver low initial fees to prospective franchisees. These businesses include various consulting services such as real estate, income tax prep and travel agents, many of whom can work from home. In addition, kiosks selling food and other items are often able to start out at a low initial investment fee, as well as handyman services, home inspection, child and elderly care services, tutoring, promotional printing and design products - even hosting tournaments for a league of international sports players. Indeed, the list goes on and the opportunities are seemingly endless - all one has to do is look beyond the exorbitantly-priced companies and be creative about possible franchise business opportunities available for those with limited funds.
But where is as good place to look for low-investment franchises?
By attending various online directories, trade shows and other Internet resources, the eager entrepreneur can come up with a wide range of possibilities that match his or her investment capabilities. Oftentimes, investing money to achieve a considerable rate of return is one's biggest priority while the particular industry that one goes into may matter less. It is important, however, to make sure that one has a certain amount of interest and enthusiasm for the type of franchise that is finally chosen. With close to a hundred different industries opening up in the franchise market - and many of these available for low investment - it should not be difficult for investors to find something they can get excited about.
One way to find out if one will really do well at working in a particular field is by going to work for another franchisee in the same industry. But instead of simply filling out an employment application and putting on the uniform, a low level investor can actually turn this into a collaborative investment. While putting in time, effort and money, one may see a return on his or her investment as well as valuable experience that could eventually lead to independent ownership of a franchise.
Through creativity and hard work, an enthusiastic entrepreneur who only has a limited amount of money to invest can find the franchise opportunity that will fulfill both the personal goals as well as the financial goals being sought.
For More Information
|
