Discover why low cost franchises are extremely profitable
We are all familiar with the notion that ” you get what you pay for” right? Well, when it comes to investing in a low cost franchise, this is just not the case. Many franchise owners, including myself, have seen just how profitable a low cost franchise can be.
According to FRANdata, there are over 650 low cost franchise opportunities in 30 different industries that range anywhere from $10,000 to $100,000 to start.
Lets’ discuss why a low cost franchise could be your path to flexibility, freedom and financial independence.
#1. low cost franchises are affordable
As a franchise consultant, I find in talking with aspiring entrepreneurs that they think that business ownership is truly not within their reach due to cost.
Most people think that it costs hundreds of thousands of dollars to own their own business. This is simply not true. Low cost franchises and business opportunities can be started for as little as $7500. Due to the minimal investment there are a variety of options for aspiring entrepreneurs to obtain the funds needed to invest in a low cost franchise.
Ways to fund a low cost franchise
- Many franchises offer in-house financing with a credit score of 600+
- Home Equity Loan
- 401 K
- SBA Loan
- Unsecured Loan
- Loan from family or investor
- Savings Account
Don’t let financing stop you from exploring franchise opportunities. We work with clients each and everyday who are able to obtain the funds and financing necessary to start their own business.
Inside the Franchise works with trusted lenders who go the extra mile to help our clients get funded, start their business and become successful business owners.
Low cost franchises also offer the following advantages:
*Typically home based and do NOT require a costly physical location
*Few to NO employees
*Turn key concepts with simple implementation
#2. low cost franchises = flexibility
Take a moment and picture yourself owning your own business, setting your own schedule, and doing so from the comfort of your own home or wherever you wish to work.
Because low cost franchises are typically home-based you do not have to worry about a physical location with set operating hours.
You are in control of your day which gives you flexibility in your day to day schedule.
Being able to schedule work around school activities, ball games and travel is priceless.
Research has shown that low-cost franchisees routinely work less than 40 hours per week as compared to all other franchisees.
Another advantage to a low-cost franchise is the fact that in many instances you will have the flexibility to start your business while transitioning from a full-time job. Again, this is possible as you are able to set your schedule.
Flexibility leads to more freedom which creates a positive work-life balance which in turn allows us to be happier and healthier in all areas of our lives.
#3. low cost franchises = Quick roi
Due to the fact that low-cost opportunities require a much lower investment, profitability is achieved much sooner. It takes less time to break-even which leads to a much quicker return on your investment.
In addition, low cost franchises also have a quick ramp-up period. There are no delays that can occur with finding and leasing a building, completing the build-out of that space and so on and so forth.
Home-based opportunities allow you to hit the ground running and start generating revenue immediately.
#4. Low cost + high margins=Ability to scale
Because of the low investment, low overhead costs, quick ramp-up and high profit margins, you are able to reinvest your profits and scale your low-cost franchise.
When you purchase additional territories or equipment this will allow you to expand, grow and generate additional revenue.
More revenue means more growth which leads to greater profitability. In essence, it is as simple as rinse and repeat.
Financial independence is achieved through wealth creation. Franchise ownership is a solid path to wealth creation and ultimately financial freedom.
#5. evergreen and essential low-cost franchises
Many low-cost franchise opportunities fall within the “holy grail” of all business categories which we refer to as evergreen or essential services.
Evergreen and essential services are services that will always be in demand and are considered essential. And, when a business is evergreen it will most likely be recession-resistant as well. A few examples of evergreen industries include:
- Cleaning
- Restoration
- Construction/Remodeling
- Senior Care
- Healthcare
- Child Services
- Business Services
- and the list goes on and on
These types of businesses provide services and products that are needs based and people will always be willing to pay for those products and services that are needed.
You will find that the majority of low-cost franchises are considered to be evergreen, essential and recession-resistant.
At the end of the day, low-cost franchises are a WIN + WIN. Low cost + high profit + flexibility…..what’s not to love about that!
low-cost franchise: key take-aways
- AFFORDABLE/LOW COST
- SEVERAL FUNDING SOURCES
- TYPICALLY HOME-BASED
- OFFER FLEXIBILITY + WORK-LIFE BALANCE
- ABILITY TO START YOUR BUSINESS AND TRANSITION FROM FULL-TIME JOB
- HIGH PROFIT MARGINS
- QUICK RETURN ON INVESTMENT
- SCALABLE
- EVERGREEN INDUSTRIES + ESSENTIAL SERVICES + RECESSION RESISTANT
- PATH TO WEALTH CREATION/FINANCIAL FREEDOM
Next Steps? We would love the opportunity to chat with you about your interest in a low-cost franchise!
There has never been a better time to start a business. We are ready to help you get started. Ready?