How to Start a Home-Based Franchise
Starting a home-based franchise may provide a low barrier for entry into entrepreneurship, but the work is no less hard. This guide will prepare you for what to expect.
Sound simple? Not quite. Actually, launching an at-home franchise can leave you tangled in a complicated corporate contract and liable for far more than you bargained for. Buying into a franchise, after all, is an investment, and to make sure that investment pays off, you've got to research carefully and buy wisely, especially if you're bringing business into your own home.
"You're making a life-changing decision," says Garth Snider, a franchise law attorney and president of the Franchise Opportunities Network. "It doesn't make sense to get into a business that you're lukewarm on just because it's home-based."
The good news is that franchising is designed to work. You just need to find the brand that fits you and your home. This guide will show you how.
How to Start a Home-Based Franchise: Is It Right For You?
The most important thing to consider before you even explore franchising opportunities is whether or not you'll be able to work effectively from home. Keep in mind that working from home is still work, and it won't instantly grant you the freedom you might expect.
"Don't go into franchising thinking it's a one way ticket to easy street. Most franchisees will say it's well worth it, but it is hard work," Snider says. "If you're easily distracted by the kids or Oprah, then [a home office] may not be the best environment for you."
This is a full-time endeavor, and you will work long hours. You can't expect to grow if your home-based business is an after thought or a side project.
CruiseOne franchisee Ralph Santisteban admits to having worked 12 to 14-hour days when he was first starting out. As a result, his business has grown steadily since he opened in 1998.
Snider says, "The pitfall is thinking that you’re not going to have to work as hard as you were working before. That’s not the case, unless you’re coming out of a coal mine."
So before you start out, ask yourself if you can afford the long hours. Can you work in a solitary environment? Does your home have space for an office? Are you self-motivated and organized? Do you have the funds needed to cover your start-up costs? And, most importantly, can you live where you work?
If you're up to the challenge, then go ahead and check out your franchise options. It's important to do something you enjoy and cash in on your passion, but first, check with your local government to make sure your home is zoned for the type of business you want to open.
Once you've done that, there are a few reputable websites you can use to find out what's available in that field. Sites like Franchise Gator and Franchise Solutions will give you fast facts and figures about what home-based franchise opportunities exist.
If nothing suits your liking, think about the companies you enjoy doing business with. Fetch! Pet Care franchisees Loni Rudolph and Nicole Romagnolo, for instance, knew they wanted to work with animals. Rudolph remembered how pleased she was with the service Fetch! provided when she left her own pets under their care. "When we found out they were franchised, we were happy," Romagnolo says.
The two soon-to-be franchisees researched the company's practices and ideologies and found that they shared Fetch!'s beliefs on how to care for animals. Then they investigated whether or not there was a need for that type of service on Staten Island, where they're based, and if they would be up against any competitors, a step they say as crucial to any start-up at-home franchise.
When they found that there was a need for trusted pet care in their area, Romagnolo and Rudolph decided that Fetch! would give them all the guidelines they needed to execute that service well.
http://www.inc.com/guides/2010/05/start-home-based-franchise.html
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