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Top 7 Advantages of a Home Based Franchise

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Home Based FranchiseThere are many advantages to a home based franchise. For one, many offer low initial costs. Starting your own business out of your home means you won’t have to mortgage your mother-in-law or father-in-law to get started. Many start out at an investment of under $25.000.00 and some even lower. A larger grouping ranges between $25 and $50k. Home based franchises offer unique opportunities to make an excellent living in a familiar and low-stress environment.

Top 7 Advantages of Home Based Franchises

There are probably advantages not listed here that you may think are great; such as working in your pajamas or wearing the same clothes every day to save wear and tear on the washing machine. This list won’t go there. Our six reasons are as follows:

1. Less Risk 

Since initial costs are lower, so is upkeep. You don’t have to have a separate building, separate insurance, few, if any, paid employees or a parking lot the size of a football field.

2. Tax Benefits

If you really, really love to pay taxes, strike this one off. But, on the other hand, if you would like to keep more of your profit, you can deduct parts of your utility costs, mortgage payments, upkeep, property taxes and depreciation off your taxes.

3. Short Commute

Leave your car in the garage. Skate, crawl. stumble or stagger from the bed to your home office. It may take a while to get used to, and you may miss the traffic jams, gasoline bills, accidents and road rage but, in time, you’ll adjust.

4. More Personal Time

Since your home based business isn’t far away, you’ll have more time for other activities, more down time. You can channel the extra time into a hobby that reduces stress. Take up painting or working in the shop and nurture your creative talents. The family will appreciate the extra time at home with you as well.

5. More Control

Unless you add other employees, you get to wear many hats — all of which you control. You become the receptionist, switchboard operator, accounts payable and receivable clerk, head of marketing, sales rep, customer service, head of maintenance, and company president. Seriously, you will have more control and be able to develop more of a personal rapport with your customers. You’ll grow in the various areas, develop more people skills and personal growth and have a greater appreciation for all facets of business through a home based franchise.

6. Profits

Since you are your own boss in a home based franchise, you are your own motivator. The more you put into the business, the more profits you keep. Owning a home based franchise business can have all kinds of benefits but, you have to be driven to be profit-conscious. The more you work, the higher the returns. After a while, once you’re established, you can find a comfortable niche where both the business, your work load and profits are at a comfortable level.

7. Retirement Savings

This advantage is often overlooked. If you are the owner of your own business and are the only employee, you have some extra flexibility in setting up a company retirement plan.  The rules are different from your typical 401K plan as an employee, so you can potentially “sock away” much more than the typical limits of a 401K.  In some circles, this is referred to as a Defined Benefit Plan.

There are adjustments to be made with a home based franchise, especially if you’re used to working in a different environment. But, you can control the distractions, you have your own customized office area and you alone determine the work schedule.  Of course, not all franchises are created equal and while some may be a great fit for you, others may not.  If you are looking to buy a franchise, be sure to do your homework.

Once you begin, you’ll add benefits that are not even listed here. With a reasonable amount of motivation and determination, you can be set and grow at the pace you choose. There’s the option of adding employees later or keeping the profits yourself. The flexibility alone is a huge benefit. A home based franchise is well worth looking into for the independent and disciplined individual who wants to truly go it on their own.

 

Thinking about a home based franchise? Did you find this article helpful or do you have an opinion you would like to share?  Join the conversation and share your comments below. 

About the Author, AFD Team

The American Franchise Dream team is a dedicated group whose primary purpose is to help inform those exploring franchising as a potential business model. We believe that through education we can help prospective franchisees make better decisions when evaluating, selecting and buying a franchise.
 
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