Budget Businesses: The Value of Low-Cost Franchises
The benefits of affordable business opportunities that don't break the bank.
One of the biggest myths about franchises is that they’re prohibitively expensive, but the reality is quite the opposite, and franchises are available at every price point. As one might expect, big-name legacy brands such as KFC, 7-Eleven and Planet Fitness do require initial investments above $1 million. However, a majority of valuable concepts cost considerably less to own and operate. Low-cost franchise brands are a wise option for entrepreneurs looking to get into the franchising industry, and there are countless advantages in going the budget route.
Calling all first timers
If you’re an entrepreneur who’s ready to jump into the business ownership pool, a low-cost franchise is a wise and practical way to get started. If you don’t have millions in the bank, or maybe even a half-decent nest egg, you can still find hundreds of franchise concepts that command a lower investment level. These franchises typically have operational requirements that are far less labor and resource intensive than high-profile brands. Still, for the most part, you can expect the same level of training and ongoing support that any established franchise offers – possibly even more.
Proven business models regardless of size
Franchises present an advantageous route to business ownership, as opposed to starting a business from the ground up or buying an existing company in a resale opportunity. The primary reason is attributed to the established and proven business models that offer owners a roadmap to success – provided that owners follow through. But whether you invest in a high-profile, big-name brand, or a low-cost budget franchise, you’ll note the same consistencies in the operating systems provided to owners. Even the most affordable concepts offer proven systems, tools, resources, training and ongoing support. Running a low-cost franchise gives owners the chance to be a big fish in a little pond, which isn’t a bad place to begin building an enterprise.
Less hassle = less risk
Many low-cost, affordable franchise concepts aren’t exactly ornate or complex operations. Many don’t require an established brick-and-mortar location, a massive inventory of supplies or even a large staff. Some low-cost franchise concepts are home-based, others are mobile operations. These factors help reduce overhead operating costs. Not only does this reduce the number of obstacles to owners, but it also significantly reduces the overall risk of time, money and resources put into the venture.
Finding the right franchise opportunity requires due diligence and the search is about locating a concept that matches well with your goals, lifestyle requirements and income-generating potential. Entrepreneurs can easily find viable opportunities in low-cost franchises. In taking this route, you’ll find that they require less capital, less resources and a reduced amount of risk to your investment. The upside is that, regardless of the cost of your franchise, you’ll still be your own boss – and isn’t that what entrepreneurship is all about in the first place?Related: 5 Ways to Build a Business Budget for Maximum Success