Home-based Franchise Report
Working from home might not be for everyone:
Starting a home business may not be for everyone. The down side to working at home is that although it is convenient, the majority of one’s time will be spent working alone. There will be no one to chat to during the coffee break, no one to motivate you on a slow afternoon and no one to look over your shoulder to make sure that you have the work done. You need self-discipline and motivation. You will also need to be a very organized person as you will be running all aspects of the business.
Self motivation and discipline can also be taken too an extreme. Because your business is at home it is more likely that you will be tempted to continue to work long after you have completed your normal working hours. As much as you need to be self motivated and disciplined in work, a home-based franchisee needs to be self disciplined in their private life as well. You need to recognize that your work and your personal life are separate entities and that it is important to be able to walk away from work at the end of the day.
The following is a check list to see if you have what it takes to be a home-based franchisee:
- Are you happy to work by yourself all day?
- Are you good at managing your time?
- Do you work well without supervision?
- Are you able to walk away from an unfinished project at the end of the day?
- Have you discussed your home-based plans with your family and have they fully understood how important this business is to you?
If you have answered yes to all of the above questions then starting a home-based business is right for you. This report will have given you an idea of the things that you need to research or think about in more depth before you start a home-based franchise.
Top reasons to start a home-based franchise:
- Be your own boss and gain the freedom you have always wanted:
By becoming a home-based franchisee, you are giving up a job working for someone else to own and operate your own business. A home-based franchise also gives you the freedom to work the hours that you want to work to leave you free to spend your time how you want to. Feeling uninspired in the afternoon? Go for a walk in the local park to clear your head or play a game with your children and come back to it when you want.
- No more commute:
By working from home you will not only save the time that it took to commute to work but you will also be saving money on car costs and on public transport. Even with the recent drop in gas prices the average American can consume a gallon of gas on the daily commute to and from work. Now that you no longer have to budget time and energy for commuting you have a lot more time to make your business a success.
Owning and operating a home-based franchise is a more affordable option then starting a business that requires specific premises. The initial investment and the ongoing operational costs are kept lower and more manageable. The average total initial investment for a home-based franchise can range from $45,569 to $94,826*.
*This figure is based on the calculated average of the 33 home-based franchise companies selected for this report.
One of reasons that individuals will fluctuate from job to job during their career is they are bored in their current position. In many jobs, an individual has one or maybe two specific tasks. When owning and operating your own home-based franchise you will gain first hand experience in many diverse areas of operation. You will need to become a jack-of-all-trades. You're the CEO, president, secretary, office manager and tech support. You will gain experience in marketing, research and development, sales and strategic planning. A franchise offers experienced advice and guidance in all the different areas that a new franchisee will come up against.
- The security of a tried and tested system:
By owning a home-based franchise, you are buying into a proven business model and more importantly, a support system. Home-based businesses will not have a support system whereas a franchisor is in the business of helping their franchisees succeed. If the franchisee succeeds, then the franchisor has done their job right. By buying a home-based franchise you are buying into a support system of people who want you to succeed. You will have support from the franchisors but also from other franchisees. You are in business for yourself but not by yourself.
Over view and Outlook:
Small and home-based businesses have the ability to kick start the American economy through innovation and job creation. In 1991 and 2001, both recessionary years when the larger firms were shedding jobs it was at this time that smaller businesses and franchises were actually creating jobs. Small businesses are responsible for over half of private sector jobs in the past year and are expected to continue to be a major source of employment in the coming years. The Office of Advocacy released a report in 1979 which offered a very basic principle that is still applied today:
“Innovation is an essential ingredient for creating jobs, controlling inflation, and for economic and social growth. Small businesses make a disproportionately large contri¬bution to innovation. There is something fundamental about this unusual ability of small firms to innovate that must be preserved for the sake of healthy economic and social growth.”
For many people the economic downturn represents an opportunity for them to start their own home-based franchise. As more people find themselves without a job or without job security they will turn to a home-based franchise as it offers a low start-up cost and a lower risk method of breaking into the entrepreneurial world. There are challenges that must be faced by a home-based franchisee such as the cost and availability of health insurance, meeting global competition and the availability of start-up capital or financing. But there is also positive actions being taken in order to promote and support home-based and small business as they are central to the recovery of the American economy. President Obama has implemented the “American Recovery and Reinvestment Act” in a bid to aid an industry that he described as the heart of America. The Small Business Association has also been given aid from the government in order to provide loans to encourage and support new entrepreneurs.