The freedom of being your own boss is a dream for most people. But where do you start? It’s a common misperception that you either have to invest hundreds of thousands of dollars into a business (which takes a significant amount of planning and foresight), or you have to be a freelancer (which often requires a great deal of talent at a creative skill like writing or graphic design). A better option is being a home-based franchise owner.
Discover more about how you could become a franchise owner and the answers to questions you’re probably asking yourself right now.
1. What Does a Franchise Owner Do?
The franchise owner is generally responsible for managerial tasks, keeping track of finances, and generating sales. Depending on the franchise, you could be putting in full-time or part-time hours. Be prepared to commit your time getting a franchise started. In most cases, specific hours and tasks vary according to the type of franchise you are operating. Your commitments will also vary depending on if it is a work from home franchise or a storefront, or a low-cost franchise versus a higher investment.
2. Which Franchise is Right for Me?
Consider Your Interests – It will be challenging to stay committed to a company if what you are doing does not interest you. Being your own boss is a benefit, not a driving force for success, so choose a company with a product or service you genuinely love. For example, Adriana Zak took her event planning experience and turned it into a travel franchise that specializes in romantic vacations and destination weddings, because that’s where her passion lies.
Consider Franchises That Fit Your Lifestyle – Remember, your goal is to create your ideal working environment. In other words, if you dream of working from home, don’t choose a franchise that requires you to be in an office for eight or more hours a day. If you plan to continue working a full-time job while starting a new franchise, it needs to be something you can do during off-hours and in the cracks of time in your schedule.
Consider the Market You Will Be Working In – Another factor to consider is whether or not there is a need for the product or service you will be providing. Ask yourself what you can do to stand out, or how to create a product that is better or different than others in your market.
3. What Kind of Help Does the Franchisor Provide?
Typically, a franchisor will offer help with financial assistance, marketing, training/operations manual, brand recognition, technology tools, and more.
4. How Much Do You Need to Invest?
Franchises come in all shapes and sizes. For some franchises, you need a net worth in the millions with over $500,000 in liquid assets to even be considered as a potential franchisee, but some (such as with a home-based franchise) only require a few thousand to start because you do not have as much overhead to run your business.
Depending on the structure of the franchise agreement, there are varying levels of investments of both your money and your time. If you plan to invest in a franchise, make sure you understand the franchise model and have all your questions answered before you make a decision.
5. What Does it Take to Have a Successful Franchise?
While there’s no guaranteed path to success in business there are some common habits of good franchise owners.
Prepare Your Finances
Starting a franchise is like starting a business. In some cases, a franchise owner won’t see a return on their investment or any profit for up to a year. You should be prepared with your finances and understand the requirements and expectations of your investment.
Even with low-cost home-based franchises, it is important to prepare your finances. Know how much you need to invest to start your home-based business, but also the expectations of how much you should make each month.
Follow the System
Franchisors have a playbook to follow that they have found leads to success. Generally, franchise owners who follow those guidelines find more success than those who think they can be creative and do their own thing. Not to mention, going against the system will violate the franchise agreement and put you in jeopardy of having your franchise terminated.
If you dislike or feel overly burdened with your franchise, that toxic feeling will feed down to your employees and customers. By being upbeat, energetic, and actively involved with your franchise, you will create a positive environment that your staff will see and your customers will want to be part of.
Provide Great Service
If your customers are happy, you’re happy. Having a satisfied and loyal customer base can make all the difference to a franchise’s success. Satisfied customers will provide repeat service and act as brand ambassadors to their family and friends by giving priceless referrals.
6. What are the Steps to Start a Franchise?
Step 1. Establish a Budget
Before you jump into starting a franchise, you need to evaluate your financial resources. Determine how much money you can afford to invest and how you will acquire any remaining costs.
Create a detailed financial plan for your franchise, including business goals and plans for covering costs and making payments while you build a client base.
Step 2. Research Available Businesses That Offer Franchises
Before you even meet with a franchisor, you should do thorough research into the franchise to understand the risks and potential growth possibilities.
Start with researching the industry. You should understand the industry intimately by the time you are done. This includes factors like industry size, growth trends, history, and competitors. If you’re going to enter into an industry as a franchise owner, you need to know as much about it as possible.
There are thousands of franchise brands you can pick from. When trying to select the right franchise, look into their reputation and reviews as a franchisor. Consider how long they have been offering franchises as well as their online reviews, litigation history, and financial performance.
There are different types of franchises that you can become an owner of. Storefront options are not the only franchises you can own. You can also be a franchisee of a low-cost home-based business.
Franchisors are required to file a franchise disclosure document (FDD) and a franchisor will provide you with an FDD at some point in the sales process. The FDD is a legal document that includes facts like any previous litigations or bankruptcies, initial fees, operating and other fees, estimated initial investment, and financial statements. You should read through the entire FDD, ask questions about anything that is unclear, and even compare FDDs from other franchisors against each other.
What Do Home-Based Franchise Owners Do?
Some companies, like Dream Vacations Franchise, offer the opportunity for franchisees to own and run their franchise from their home. Home-based franchise owners work just as hard as other franchisees. But simply, they are responsible for running and maintaining the company from their home.
Depending on the franchise structure, it is possible for home-based franchise owners to work from other locations when necessary. For some franchises, all that is needed is a stable connection to the internet, which means that a franchisee could work while traveling or on the road.
Choose to Open a Travel Business Franchise
For as little as $3,500 down, you can launch your future by becoming part of the travel industry. You can quickly build your business and see the world at a discounted rate while establishing a career you love.