Franchises under 10k

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:

• Startup costs: your startup costs are going to be low with a low-cost franchise under 10k. While the purchase of the rights to operate in a certain area and the purchase of the business from the franchisor might cost you under 10k, there are other costs to consider, too. However, with most low-cost franchises, you’re really going to be getting your money’s worth for under 10k.

• Monthly operating costs: the beauty of buying a franchise under 10k is that your monthly operating costs will be super low to none. This is because there are usually very few input costs and you’ll most likely be operating virtually.

• Competitive environment: the low-cost nature of franchises under 10k means that your startup environment is competitive. This is a feature of many low-cost franchises.

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:

• Education
• Children and childcare
• Sport
• Plumbing
• Vending
• Clothing franchises
• Car wash and car services
• Arts and crafts
• IT & Computers
• Services
• And so much more!

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!

Expected earnings

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.

Benefits

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.

Required skills

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.