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Affordability:
The number
one and most obvious reason why low cost franchise
opportunities are so appealing today is because of there
relative affordability. When compared to many traditional
and popular brick and mortar franchises like fast food
restaurants for example, that on average cost anywhere
between $300k to $500k, most low cost service related
franchises generally cost less than $100k to start-up.
Because of the lower investment required these types of
franchises are often able to be purchased by individuals
using there owner personal financial resources. This in turn
can often eliminate the headaches and time consuming delays
many franchise buyers experience when trying to secure bank
or SBA financing to purchase a more expensive franchise
opportunity. And let’s not forget that with no burdensome
loan payment every month the new franchise owner can put
more money in his or her pocket.
Easier &
Quicker To Get Started:
Because
most low cost franchises tend to be service related they
generally don’t require the time consuming build out of a
new location. Consequently they can often be up and running
very quickly. This is an obvious advantage to entrepreneurs
who for various reasons such as a job loss need to get a
business off the ground quickly. In fact, many low cost
franchises can often be operated from a home office thus
even eliminating the need and time to find and lease an
office or retail space.
Easier To
Grow Business:
With a
lower overall investment required many
low cost franchise opportunities can often be easier and
less expensive to expand or grow. This appeals too many
first time and inexperienced small business owners who are
concerned about minimizing their risk. The option to grow
the business by taking smaller incremental steps and with
out making a big investment can be very comforting.
Lower
Overhead Expenses:
Unlike your
typical brick and mortar franchise opportunity many low cost
franchises are designed to be an owner operated and
generally have little or no staffing requirements. Many are
also designed to be either home-based or don’t require
expensive and high traffic retail space further reducing
monthly overhead costs. Obviously with lower overhead and
operating expenses your chances of reaching profitability
and putting more money into your pocket can increase
dramatically.
Offers
Potential Better Lifestyle:
And finally
because many low cost franchise opportunities today are
service related and can be operated from a home office you
could potentially have a lot more flexibility in running
your business. Ultimately this could also provide you with
more free time to spend on other priorities in your life
including your family. |
