Whether you call it a cheap franchise, an inexpensive franchise, a low-cost franchise or an affordable franchise, there’s no doubt that many potential investors looking to run a business with the help of a pre-designed business concept are indeed concerned about price.
Starting a franchise can be costly—especially if you’re looking to run more than one location. What many looking into business operation don’t know is that franchise concepts come in all shapes, sizes, sectors, and prices. Likewise, considering the difference between low cost of entry and low overhead is essential.
First, consider a few different concepts that are out there today. Interested in the dessert segment and don’t want to be tied down to any one place due to your love of mobility? Mobile revenue and homemade ice cream unite with Sweet Pea, an eco-friendly ice cream truck (electronically powered, to be exact) franchise that’s yours for an initial start-up amount of 40K for a small market area.
Another sector not often associated with franchising by the vast majority of those newly researching is commercial cleaning that involves removing oil waste products from business sites. Filta offers businesses a nationwide franchise network of over 130 franchisees. Each franchise partner benefits from residual income associated with serving long term customers that have a consistent need for cooking oil filtration management services. The concept features a start-up cost of 30K.
Now, these start-up costs may be out of reach for some, and there are plenty of opportunities with a minimum start-up cash requirement well under $15K, some of which are franchises and some of which are actually considered business opportunities.
One such opportunity pertains to the burgeoning world of social media outlets and how they are impacting businesses every day around the world. If you are interested in social media and want to run a home-based business that works closely with local businesses to help them manage their online presence, Social Owl offers an advertising and marketing based business opportunity that features low cost of entry and no experience in the field of social media (training and support is part of the deal).
So what’s to know about low cost of entry vs. low overhead costs when running a franchise? Entry costs indicate an initial cost that can be expected to start the business, either indicating the franchise fee paid to the franchisor or in some cases requirements associated with accessible liquid capital. Overhead costs are those expenses associated with managing and running the business on a daily basis, which can vary greatly for each establishment and concept. Consider both when researching your potential franchise to ensure that start-up cost and ongoing overhead expense is appropriate considering your personalized financial situation and the earning potential of the particular concept.