It’s true that the nine to five grind isn’t for everyone. Many people these days are looking for a way out, a way to be their own boss, managing their time the way they wish and not according to someone else’s schedule, and having the ability to earn income in new ways. If this describes you to a T, you’re probably looking to buy or start your own business.
While it’s extremely rewarding to run your own business venture, you need to be aware that the road ahead will not be a smooth one. With things like your initial investment, operating costs, ongoing, fixed and variable expenses, the lack of market recognition by your potential customers and the need to advertise extensively to get your brand known are just some of the obstacles that you face when starting up on your own.
This is why franchising has become such an attractive opportunity. It’s a way to still be your own boss, but with a whole lot of support and ongoing training behind you so that you can carry out the product or service offering to the highest possible standards, while earning a revenue.
True, there’s profit sharing in the form of royalties but you also get so much with your investment than you bargained for. Ideally, your investment should set you up for the upcoming months so that you can effectively stand on your own two feet.
If this sounds appealing to you and you’re ready to consider franchising, your budget might have crossed your mind. After all, nothing in this world comes for free. However, that doesn’t mean that buying a franchise needs to cost you an arm and a leg.
With this in mind, there are hundreds of franchises under 10k to suit your budget and to give you peace of mind as you can rely on some savings as opposed to taking out a loan. Alternatively, you could take a loan and purchase one of many low-cost franchises and this means that your repayment period, interest and repayment amount will be much lower than, say, going for a franchise that’s over 100k, for example.
So, if you’re ready to consider some really affordable franchises, keep reading because there are a couple of things you need to know.
What is a low cost franchise?
Firstly, it’s important to know what you’re getting for your money, and with this comes the question: what is a low cost franchise actually? There are a few defining characteristics, but the most common ones are the following:
What can you get for under 10k?
Since there are literally hundreds of low-cost franchises for sale under 10k, you can choose basically anything that suits your personality, skill set, interests, budget etc.
Some of the top franchises under 10k include:
Low cost franchise vs low cost business
A word of caution. Are you aware of the difference between a low cost business and a low cost franchise? If not, read on. A low cost business means you’ll be operating under your own name, and yes, while all the profits will be your own, it means you’re not actually working with a brand that has franchise units in different parts of the country.
A low-cost franchise on the other hand, will mean that you will be operating under the franchisor’s name, you will need to sign a Franchise Agreement, you’ll get training and support, marketing materials and advertising, as well as a specific location to operate in. This, in a nutshell, is what comes with being a franchisee.
Anything else and the opportunity is a low cost business rather than a low-cost franchise.
Total investment cost
Now you might be wondering, what do you get with your 10k? The answer in most cases will be similar.
For starters, you’ll have the right to operate in a specific area and earn money from it, which you’ll partially share with the franchisor.
Then, your franchisor is likely to offer you support from day one so that you can get started with the business on the right foot.
There’s also ongoing training that needs to happen to ensure that quality standards are not neglected, but rather maintained to the highest levels. This means the need for effective communication between you and the franchisor.
As an additional extra, your franchise cost is likely to include marketing and advertising costs, but be sure you ask the franchisor about this beforehand as it’s not a given in some cases.
With all these perks being thrown in the bag, it’s no wonder that a low-cost franchise investment for under 10k is so attractive!
Another important question is: what type of earnings can I expect to make in the short, medium and long term? This is a good and important question, but the answer will depend on the type of franchise that you choose to buy as the very nature of the business will be a good indicator of the potential earnings.
One rule of thumb is that since franchises operate on proven and profitable business models, you are likely to start seeing financial results around the first six months of being in business. When compared to traditional businesses, which often don’t make it to five years, this is a rather positive outlook, indeed.
So, what are the benefits of buying a franchise under 10k? There are several, and these are often the main unique selling points of franchises altogether.
For example, you’re likely to receive support and training. This is critical to maintaining the franchisor’s high quality standards for which they’re known in the industry. This may mean workshops and setting time aside to ensure you learn about what will be expected from you as a franchisee when you eventually start delivering the product or service to your customers.
Speaking of customers, the beauty of franchising is that you no longer have to look for them. Rather, the franchisor already has an established client base, just waiting for you to tap into it and get cracking to earn some money.
In most franchising relationships, it’s also quite typical for the franchisor to take charge of the marketing and advertising. This is not to say that you won’t have marketing and advertising expenses at all, but rather, that you won’t need to spend any time on advertising your business from scratch.
A further benefit is the fact that you’ll be working under the name of an established brand. It usually takes businesses years and many word of mouth recommendations to reach this level and it’s a critical component of the company’s identity. Luckily, as a franchisee, this is something you won’t have to worry about.
Finally, you might be wondering what are the right skills for getting involved with a low-cost franchise. While this will ultimately depend on the type of franchise that you settle on, some of the most common skills that one would need include strong and effective communication (remember that franchising is a two-way street), drive and determination (the more you put in the more you get out), management as well as people skills.
SportsCool delivers sports education services that aid child development in over 400 schools.
Progressive Sports works in partnership with schools and communities to encourage children and teenagers to become more physically active.
Founded in 2009, Fantastic Services has grown from humble beginnings to become a highly regarded global enterprise with over 500 franchisees.
Since 2010, Choice Home Tutoring has offered in-home, personalised tutoring for children and teenagers.
Leisure Leagues enables football enthusiasts to form small teams and compete against others within a near professional-standard league.
Legacy Sport aims to encourage school students to lead healthier, more active lifestyles.
BabyBallers conducts football classes for children between the ages of 16 months and five years.
PlumbProud provides professional standard plumbing, gas, and heating services
Kidslingo specialises in language education. The company offers fun and interactive classes suitable for young children up to the age of 11.
Cook Stars conducts cookery classes, parties, and workshops for children and teenagers.
Live Language is a global education brand that helps students master new languages and learn about other cultures.
First Class Learning helps children of all ages fulfil their potential.