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Entrepreneurship on a Shoestring: New Trends Revolutionize Low-Cost Franchise Options
Franchising is a trillion-dollar industry, but that doesn't mean you have to be a millionaire to get into franchising. In fact, hundreds of low-cost franchise options are helping thousands of prospective entrepreneurs realize their dreams of owning their own business.
If you that that all franchises were like McDonald's and Dominos and cost hundreds of thousands of dollars, think again. The International Franchise Association estimates there are more than 760,000 franchised businesses in the US, spanning more than 75 industries. And many franchises cost as little as $10,000. So if you are interested in entrepreneurship on a shoestring, check out these low-cost franchise options.
Two Hot Trends in Low-Cost Franchises
Two trends are helping revolutionize low-budget franchising:
- Home-Based Business
- Mobile Franchises
By eliminating the costs of brick-and-mortar buildings, home-based businesses and mobile franchises are opening up the possibilities of entrepreneurship to thousands.
Hot Home-Based Business Franchises
One easy way to eliminate expensive start-up costs of entrepreneurship is to build your business from home. Here are some growing low-cost franchise options that you can operate out of your home:
- Bookkeeping
- Computer repair
- Cleaning
- Lawn Care
- Elder Care
A Business That Will Take You Places: Mobile Franchises
Mobile businesses are another trend in low-cost franchises. Entrepreneurs are increasingly converting vans or recreational vehicles into their full-time job-on-wheels.
In Business Week's Taking Small Businesses On the Road, Eric Stiles, president of Franchise Business Review explains that start-up costs for a mobile pet-grooming business can be as low as $10,000 compared to "upward of $200,000 for brick-and-mortar business."
Names Please: 2007's Top 10 Low-Cost Franchises
If you are looking to start your own franchises without a high price tag, take a look at Entrepreneur.com's top ten low-cost franchises for 2007. Each was selected because it offers a supportive franchisor and a large growth potential, but doesn't cost a fortune to start.
- Jackson Hewitt Tax Service
- RE/MAX Int'l. Inc.
- Jani-King
- Curves
- Liberty Tax Service
- Merle Norman Cosmetics
- Kumon Math & Reading Centers
- Jan-Pro Franchising Int'l. Inc.
- Chem-Dry Carpet Drapery & Upholstery Cleaning
- Bonus Building Care
Low Cost Doesn't Mean Low Growth Potential
Just because a franchise has a low price tag, doesn't mean that it has a low potential for profit or growth. Take the story of Kim Gore, owner of three Curves gyms. In a recent Working Mother magazine, Kim explains that for the relatively low price of $19,995 she bought her first Curves gym five years ago. She "made back that initial investment in the first three months of operation" and now "grosses about $45,000 a month."
Turn a Low-Cost Franchise into a High-Profit Business
So if you want to achieve success in low-cost franchising like Kim did, Entrepreneur.com suggests that you "always ask about system innovations." Some innovations that can help you find a low-cost franchise include:
- Work-to-own program -- Franchisors like 7-Eleven allows franchisees to buy their business over time
- "Silent partnerships" -- If you have experience but no money, team up with a silent partner who can fund your start-up costs
- Local or urban redevelopment -- Team-up with local redevelopment agencies; this could help you get prime property in revitalizing neighborhoods at low prices
The Best Part of Low Cost Franchises
The best part of low-cost franchises, states Entrepreneur.com, isn't just being able to be an entrepreneur for less -- "it also means it's possible to build your very own empire. You can be a multiunit franchisee without spending millions of dollars."
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