subject: 5 Reasons Why A Home Based Franchise Opportunity May Be For You [print this page] 5 Reasons Why A Home Based Franchise Opportunity May Be For You
It's a pretty fair statement that most people, if they had the choice, would choose to have a home based business, especially a home based franchise. I'm sure you can already envision yourself waking up when you feel like it, taking that extremely long walk from the bedroom to the office (don't get too tired), you're probably still in your pajamas and you know that no one can say a thing about it. To me, that's the American Dream!
There are a bunch of reasons that new business owners or new entrepreneurs would choose a franchise model over a traditional business model, but in this article, we're not going to be talking about that. What we are going to talk about is 5 main considerations to think about in choosing a home based franchise opportunity. You might find that what you hear is something you've never considered before or never thought about that much. Either way, let's get on with the show!
1. High Costs To Entry - The total investment in starting a franchise usually is around $250,000, and that doesn't include the real estate. With most franchises, you still have to get a physical location, you might have to get large equipment based on the business, you'll probably have some sort of initial inventory to get, and you're also going to need a few months of capital to cover all the starting expenses while the franchise gets off the ground. In a home based franchise opportunity, these kinds of costs really don't exist.
2. Continued Costs - After the initial costs, you now have continuing costs. These include the monthly rent, utilities, payments on equipment, inventory, employee wages and benefits, fixed costs, variable costs, breathing the air costs (okay I felt like a bank commercial right there charging for everything), and much much more. However, in a home based franchise, your overall house expenses might go up a little bit, but it's nothing compared to the costs of a physical location
3. Tax Benefits - You might be thinking that you get tax benefits on any franchise... and you'd be right. Let's look at it this way. Most of the equipment and supplies you need to run your home based franchise is the same stuff you already have. I'm talking about a computer, a phone, a high speed Internet connection and maybe a fax. The difference is now you're not increasing your costs and you get to write off all the business expenses that you're already using anyway.
4. Scalability - One of the pitfalls of owning a franchise is that you usually have to own multiple operations to make some serious dough. With home based franchise opportunities, that's not necessarily true. For instance, if you bought an Internet franchise, you can usually make the size of your business as big or as small as you want because there's no physical size online. You have a model that's scalable.
5. Bora Bora - What I believe to be the biggest benefit of a home based franchise opportunity is the fact that you can pretty much work from anywhere you want in the world and be 100% virtual. That means if you wanted to take a month long vacation in Bora Bora, you can still run your business. Now this isn't always the case, but what I can say is if you have a physical location, you can't be virtual. Now you can leverage other people to run your franchise, but with a home based franchise, you can usually skip that step.
