Franchising is a concept that has become very popular in the recent century. It states that more than three-fourth of all significant organizations in the United States use the concept of franchising in one way or another. Franchising has become a critical factor in increasing the growth of a business in any sphere. This article directs at solving the important question that is: can a franchise be run from home or not, the benefits of running a franchise from home, and whether or not there are any critical issues with running a franchise from home. Without further ado, let us begin.
Can the franchise be run from home?
Theoretically, it should be possible to run a franchise from home. Since the number of home-based offices is increasing by the day, the number of people who are willing to start a franchise from home should be increasing as well.
There are several cases where franchises are even run from home. It is also exceptionally crucial due to the recent pandemic attack that has stopped public business meetings and forced people to stay at homes.
Here is a small guide on how to start a home-based franchise:
How to start a home-based franchise
You can start a home-based franchise for as little as a few thousand dollars, and then work your way up. You will need to be able to invest a considerable amount of time each day to run your franchise enterprise, which may also include franchisees’ business. Since you are the person who has started the franchise, you will be responsible for foreseeing every task that each respective organization is to perform.
Be sure to have a comfortable workspace though, because everything is going to be very messy and hard to keep track of, as soon as you start the business of franchising. You will be required to spend more hours on work than usually feasible for a business person. You will also have to mentally and physically invest yourself into the work. Otherwise, it will become tough to sustain your franchise.
Another thing that you will have to do is to cover up additional costs that might arise from training your franchisees, or from maintenance costs. If you think you can do all of this, you are ready to start your home-based franchise.
Factors to consider while starting a home-based franchise
Here is a small list of factors that you will have to consider if you want to open your home-based franchise:
You will necessarily have to work overtime for long hours, and with no external motivation to help you through the day. You will have to bulldoze your way through with sheer willpower. It is the most crucial factor to consider before starting a home-based franchise.
Ensure you have a comfortable workspace
If you are working from home, there are chances that you have other family members or friends around as room-mates. In this case, ensure that you have a place in your home where you can concentrate without having to be constantly reminded of something that does not have to do with your profession. It includes little kids and annoying, nosy friends. Everything requires sacrifice.
Be willing to sacrifice more than just your sleep.
You will be sacrificing things more than just your sleep. There are multiple other things that you will be sacrificing, like your family-time, your mental peace as well as your current lifestyle.
If you have the motivation and the resolve to leave all of these things behind but still have only a chance to succeed at creating a franchise, then a home-based franchise is the concept for you.
Do you know what you enjoy?
One of the easiest ways to be motivated to do a specific task is to do something you love or have a keen interest in. A good example is opening up a franchise business on hardware stores or utility stores because you adore repairing and making things.
It might be hard to find things you enjoy becoming a franchise or a business, but they are mostly good for you in the long run. A perfect example of franchises based on personal preferences is KFC itself.
Have someone to share ideas with
Just because you are franchising from home does not mean that you have to work all alone. If you have a close friend or someone in your family that shares your ideas and has a good skill set, try to hire them.
You will find that the workload considerably decreases if you have someone reliable in your team. Plus, if you have someone you trust, it can get quite easy to reduce your mental and physical stress from work.
Are your fellow-tenants comfortable with your decision?
One final thing that you might want to look out for, before making your ultimate decision is to figure out whether your fellow tenants are comfortable with your decision to work from home. Sometimes, the reason why home-based businesses fail is due to domestic issues, and the fact that the people closest to the owner are not happy with the decision of that business.
Benefits of running a home-based franchise:
Here are some of the benefits of running a home-based franchise that you need to know about. If these keep you motivated enough to start and maintain a franchise, then a home-based franchise might be an option for you:
Work whenever you want
Some people are just designed to work better during the night while most are programmed to perform better during the day. When you are working from home, you get to design your working hours.
Although, in the long run, your working hours might get limited to a specific time because your clientele and franchisees might not be comfortable discussing business at midnight.
Work at your own pace
One of the best features of home-based franchising is that you can work at your own pace, and won’t necessarily need to worry about going fast or slow. Take your time to figure out what routine works best for you, and what kind of atmosphere in your workspace is needed for you to work the most efficiently.
Save money in the long run.
You will be saving money in the long run by franchising because you won’t need to worry about hiring extra staff, or renting off a big building for your business.
You will most likely also have reduced electricity costs and will be able to manage where your money goes quickly. You can invest the money saved each month in the business itself for maximum profit.
Low start-up costs
It is compatible with the previous reason. Because you are spending less money on utility bills and won’t have to worry about investing in buying a location for your firm to efficiently work from, the average start-up cost for your home franchise will be significantly low.
Way less stressful
Franchising from home is way less stressful than working at an office where you have to deal with your employees as well as clients and the franchisees that you are contractually obligated to help.
Instead of moving from one place to another all day, climbing stairs, being stuck in traffic early in the morning or late at night, you can efficiently work from home to save a considerable amount of stress from your daily lifestyle.
Better damage control
Because you don’t have to invest in hiring employees for your franchise, you can fundamentally have better damage control and will be able to invest in higher risks comfortably. Although the risk should still pose to be a pretty big setback for you, it won’t be as fatal as having a full-on office costs quite a lot to maintain each month.
No geographical limits
Because of the very nature of the business, you are conducting; you will have to deal with international clients. It means that you can expand your franchise to work even in areas that are remote from your current location. The advantages that this very factor adds in your home-based franchise are a big deal for many companies.
Safer option right now
Because of the pandemic, it is a dangerous move to open up a physical office. Instead, many countries have banned businesses from conducting physical meetings that consist of a large number of people.
Since you are alone or have no more than a few handy people around you with the home-based business options, you will find this to be a way safer option right now. Keep yourself, and your loved ones safe from the pandemic.
Is home-based franchising a risky option?
If you have understood the factors that you will have to consider behind going for home-based franchising, you already have your answer to this question. Regardless, any business ventures come with risks. There is a famous quote dictating that profit only comes from risk.
We would recommend that all businesses that are thinking of opening a franchise from home to do that. Hopefully, this guide was able to help you understand what franchising from home is.