By starting out with an investment that is affordable, new franchisees can create a profitable business while they build their confidence and experience, before expanding the business or buying a bigger franchise for sale further down the line.
Will a franchise that is run on just a few hours a week be profitable? And will it be profitable enough to justify the time and money that needs to be invested in the first place? The answer to both questions is yes. There are plenty of franchises that can be very lucrative but only require a small investment and need just a few hours a week to run. This doesn’t mean that the business demands lower levels of dedication, hard work and passion; rather, it probably involves skills that its franchisees already have, and does not require the purchase of expensive equipment.
Why is a franchise a good idea?
Training and support:
You’ll get access to a comprehensive training programme that provides you with all the skills you need to run the franchise successfully. Most franchises provide an initial training scheme as well as ongoing support. It can be tough for an independent business to build up a customer base when they are just emerging in the market, but your franchise will be part of a recognised brand that is promoted both locally and internationally.
Lower risk:
Your business is less likely to fail if you start it through a franchise. This is because you’ll be taking on a tried and tested business model that has been perfected over the years the franchisor has developed industry knowledge and experience.
Easier access to funds:
You are more likely to secure funding from banks if you open a franchise business than if you start an independent business from scratch because you’ll be seen as less of a risk.
Preferential rates on equipment:
Being part of a franchise can provide economies of scale when buying stock or equipment. Because the franchise will have increased purchasing power with certain suppliers, discounts can be obtained.
Work part-time
When you buy a franchise that has an affordable franchise fee, it’s more than likely that you’ll be able to run the business on a part-time basis. Doing so will enable you to earn extra income whilst investing in your future. In the long run, this is much more profitable than simply getting a traditional part-time job to subsidise wages from a full-time job.
Also, it means that you can fit your working schedule around your personal commitments. So, whether you’re a new mum wanting to spend quality time with your baby or simply want to have control over the hours you work, starting a small franchise unit could be a wise investment decision.
Financial security:
Having a second job within the franchise network can offer security in times of economic uncertainty. By investing in a part-time franchise, you have a safety net, should your primary job come under threat of redundancy.
Find out if the franchise model is for you
Small franchise opportunities also offer you the chance to try out the franchise model before you decide to expand your business or commit to a more expensive alternative. Launching a business can be very daunting, so starting small with the option to grow takes away some of the fear and uncertainty that more expensive franchise opportunities can bring. There are even a few franchises that give you the opportunity to ‘try before you buy’ with a trial period before the franchise agreement is signed.
Alternative employment:
We’ve already mentioned that the employment market is becoming more unstable and people are unfortunately facing redundancy every day. Lots of redundancy packages might not provide the opportunity to invest in a high-cost franchise like a globally recognised franchise business. However, small franchises with lower investment costs are becoming a popular alternative for people to consider.
After enumerating some of the advantages of buying a franchise, I want to stress that when examining the possibility of investing you should always consider the best franchise for you. Every person can have a different plan or preference that could change the entire study. That being said, franchising remains the surest way to guarantee success.
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