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Can I Franchise a Home Based Business?

May 15, 2015 by
Can I Franchise a Home Based Business?

A lot of really great and very successful businesses have started out home based, whether out of a garage or at the kitchen table. And with the advancements in technology, today a business can be operated just about anywhere! In fact you can even franchise a home-based business and there are many advantages in doing so. Let’s explore franchising a home-based business now.

Franchising a Home-Based Business is Attractive

Home based businesses are abundant. After all, who doesn’t want to “go to work out of their home?” As a home-based business, when your level of success reaches a point where expansion is needed, then at that point it makes sense to move into a small office, warehouse or industrial space. This is very common. The fact that your business is home based DOES NOT preclude it from franchising (learn how any type of business can be franchised)! In fact, having a home-based franchise business model can be more attractive and more advantageous for prospective franchisees. Think about it: a home-based franchise business means lower start-up costs for franchisees to step into business ownership. Little overhead is attractive to anyone starting their own business. 

Low Barrier to Entry

Since your business can be started from someone’s home this would mean that a franchisee’s total investment to get your business up and running in their market is very low compared to a traditional “brick and mortar business” (check out this article that discusses how the cost of a franchise is determined). No money will need to be spent on leasing a space and very likely that no money will need to be spent on leasehold improvements to convert space into workable areas. The fact that franchisees will not be handcuffed to a lease right away is also a plus for a home-based franchise business.

Lets talk about inventory.  More than likely if you are franchising a home-based business then your business is a service business.  Some of the home-based businesses we have taken to franchise include but are not limited to: cleaning businesses (both residential and commercial), garage door repair businesses, pest control businesses, window cleaning businesses, detailing businesses, dog grooming, floor removal services, construction-related businesses, etc. just to name a few (take a look at the list of all the different types of businesses we have franchised). Yep, home-based businesses are more common than you may think!

Given that you have a service business that can either be initially started out of the home or can be operated out of the home indefinitely, it is also very likely you have little inventory. That means there is no need for a franchisee to invest tons of money in startup inventory costs. And if you do carry an inventory for your business more than likely it is not a lot (for example cleaning supplies, tools or handheld devices). If your business does require you to install certain products, then in our experience we have seen those products being drop shipped to the customers location. Yet another plus for a home-based franchise program.    

Flexibility

Another very attractive feature when you franchise a home-based business is flexibility. Perhaps your business gives a franchisee the option of starting your business part-time. Maybe that is what you did when you started your business so why not afford that same luxury to your franchisees. Jumping into a business is scary especially for first time entrepreneurs, so giving them the flexibility to start out part-time and move into full-time is comforting for some and does not seem as risky. This could be a very compelling point that differentiates your franchise business from others, so long as you qualify franchise applicants well to ascertain work ethic which has to do with pre-screening franchise applicants (read about our strategy and how we help when it comes to teaching you how to qualify applicants). The flexibility of working part-time in the business is advantageous so let’s add to that a low barrier to entry (low start-up costs as mentioned above).

Not as Risky

For a first-time entrepreneur looking to buy a franchise it is scary. There are lots of franchise businesses out to choose from and if your business sparks their interest operating from home is not as risky. Depending on your type of business the perception of the franchisee is that by operating out of their home is appears to be a safer investment, especially if the franchisee is a bit risk adverse. While there are risks involved in any franchise business venture, we think we can all agree that having the ability to operate from home is by far less risky compared to someone jumping into a franchise that requires a lease commitment, leasehold improvements, etc.  The perception is that the return on investment for a franchisee is quicker provided they are disciplined to work out of their home (a whole other topic) and your business model is easy enough to follow where franchisees can experience success quickly. 

Time, costs, flexibility and reducing risk are important factors that anyone looking to start a franchise business would evaluate. The fact that you have a business model that has been proven to work and are in a position to share all your secrets (methods, techniques, best practices, etc.) makes it a no brainer for someone who is already passionate about your industry to jump on board and join the system and purchase a franchise from you (other reasons why people buy a franchise). This is where we step into the picture working with you to put together a very attractive, affordable and comprehensive franchise program for you roll out (see a list of the steps how to franchise).

Looking at Franchising

So when you are thinking about franchising your business don’t let being a home-based business deter you! Remember being a home based is NOT an obstacle. In fact, it is really to your advantage! To learn more about franchising a home-based business call us directly at 1-877-615-5177 or simply send us your contact information.

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