Franchise options can go up to $ 2,000.
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Franchising a business may be the right path for you to realize your dream of becoming an entrepreneur without the inherent risk of a startup. According to the Bureau of Labor Statistics, as reported by Fundera, by the end of the fifth year, about 50 percent of companies fail. By the end of the decade, that number will rise to 70 percent. In contrast, a 2019 study of the U.S. census data suggests that the biennial survival rates of franchise businesses are around seven percent higher than those of independent businesses. Part of the success of the franchise model is that you can benefit from the proven business model and brand strength of a franchisor while owning your own business.
Today, franchise companies have developed from expensive stationary companies to innovative companies in almost all industries. If you prefer a more traditional route, a well-known brand will cost you over $ 50,000. Recently, however, cheaper franchise options have emerged. If you want to buy a franchise at a lower price, you have options in different industries. Whether you have a year's worth of additional savings, severance pay from a previous employer, access to seed capital, or the ability to leverage government funds, you don't have to break the bank to get started.
These six emerging low-cost franchise areas offer many great business opportunities:
1. Food service
Many people dream of opening a restaurant, but it can be risky and extremely expensive. Today we're seeing new franchisees interested in food trucks, food stands, and even food delivery. One option that is particularly appealing to many is franchise vending machines, which may require an investment of as little as $ 2,000.
Related: 5 Affordable Restaurant Franchises You Can Start Up For 5 Characters
2. Home improvement and maintenance
If you have a knowledge of the home, home improvement and maintenance franchises might be the right choice for you. These franchises have come a long way from being the stereotypical college painters. Pool service, landscaping, repairs and upgrades, cleaning, and even blinds and floors are among the most popular options available.
3. Pet grooming
If you're passionate about our furry friends, the pet care franchise is booming. According to 2017 data from the US Census Bureau, revenue from pet care services has doubled in the past decade. You can explore pet care, grooming, training, and even pet food and nutrition franchises in the area.
4. Educational Services and Children
Let's say you have a strong educational background or a passion for working with children. If so, you can explore tutoring, babysitting, nanny, or enrichment activities like piano, STEM education, or art programs offered at the client's home or at a third-party facility.
Related: What Is The Future Of Online Education?
5. Business consulting
People who leave the corporate world often still want to use their business acumen and continue working in the local area – but on their own terms. Many franchises offer business coaching, leadership development, or even allow you to set up your own professional recruiting or staffing services company. Depending on the franchise model you are pursuing, the startup cost can range from $ 25,000 to $ 50,000.
6. Fashion and Beauty
If you prefer to completely step away from the corporate world and enjoy fashion and beauty, there are a growing number of franchises that might interest you. Some of the growing areas are major broadcast events, eyelash extensions, home hair dryer and makeup services, and even portable spray tans.
As with all investments, franchise opportunities can be inspiring and very profitable – but do your homework first. Talk to existing franchisees, go through the numbers, and do a bowel exam to make sure you are up to the challenge. Also, make sure you always have a plan. Quitting a 9-5 job doesn't mean less hard work, as working on yourself usually means more hours. However, there is something rewarding about being your own boss, the hours pass quickly, and the hard work is worth it.
If you're interested in learning more about low cost franchise ideas, check out this comprehensive list based on Entrepreneur & # 39; s Franchise 500.
Related: 5 Brand New Food Franchises That Started Franchising in 2020