5 Questions To Ask Before Buying A Home-Based FranchisePublished on April 30, 2021
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Working from home while earning a decent income is a dream a lot of Americans share, and it’s one that’s becoming fulfilled more and more each day. On top of that, many Americans also dream of owning their own business and being their own boss. While many view owning a successful home-based business as being a fantasy, it is a fantasy that can easily become reality. After all, with a little ambition and drive, you will easily find that there are plenty of home-based franchise opportunities out there. Before moving forward with any of them though, the first thing you should do is ask a few questions to make sure the opportunity is the right one for you.
Is a home-based business right for you?
You need to seriously consider this question first, before moving forward with any home-based franchise opportunity. Part of the answer will come from asking the people you live with, whether it’s a wife and kids or roommates, if they are fine with you working from home. After all they will be the ones who will have to make sure you are not distracted from doing your job and give you the space you will need to do it. You will also need to consider if you have enough space for your office and supplies, have met all the safety requirements, won’t be infringing on your neighbors daily lives and if there are any zoning or licensing requirements that you will need to take care of.
How long has the franchisor been selling home-based franchises?
New franchise opportunities pop up every day, some of which are smoke and mirrors and won’t make you a dime. Other franchisors have been around for a long time and have already flooded the market with outlets. This question matters simply because it will help you decide if there are customers for you to market to, and if you will make money running the business. On top of that, by finding out how long they’ve been selling home-based franchises for, you will be able to find out how well they will be able to assist you should problems arise.
How much inventory will you need to purchase and keep on hand?
This question will go a long way to helping you decide if the space you have at home will be enough, or if you will have more expenses and need to rent out storage space somewhere else. The financial obligations of a new business need to be kept under close watch, and for home-based businesses, inventory is one not a lot of people think about.
Do you want to quickly expand? With a regular business expansion simply means hiring new people and either expanding the building you are leasing or finding a new building to lease. In many cases your current office will suffice because you might have enough room to handle it. With a home-based franchise expansion can be difficult, especially if you are ramping up quickly. Hiring office personnel can be tricky, and you might need to move your business out of your home to save headaches. If you are looking to expand quickly, you might want to avoid home-based franchises.
Where can you find home-based franchise opportunities?
Like everything, you just need to do your research. Some franchises have home-based opportunities listed on their website and in their FDDs, a franchise broker can point you in the right direction, or you can check out a third-party website such as franchisegrade.com. Research will help you find the perfect opportunity based on your lifestyle, budget and needs.
Asking questions can help bring clarity to shopping for a franchise, and when it comes to home-based franchises, it’s important to have them answered before moving forward. Whether you are looking for a cleaning or home renovation franchise, a franchise in childcare or one in the financial services, there are options for running them out of your home. You just need to know if it is the right choice for you.