Blog Entry | Tue 14 Oct 2008
One of the more surprising results from our 2008 Home Business Survey was the number of people revealed to be starting a home business by way of a franchise. When asked 'how did you come up with your business idea?', 22% of respondents said they bought into an idea, compared with 18% who spotted a gap in the market and 21% who turned a hobby/passion into a way of making a living. With franchises on the rise, what should you be looking out for when seeking the perfect home business for you?
The first thing to say is whatever your particular industry or profession, there's likely to be a franchise out there that fits the description. If food is your thing, My Secret Kitchen could be too. Enjoy travel? Travel Counsellors would like to hear from you. Prefer being out in the garden? Then Girlie Gardening may be right up your street and for health & beauty aficionados, nothing beats Virgin Vie. There's a wide range of opportunities to choose from and it pays to do a bit of homework before making a final selection.
Ask yourself a few questions ahead of making an investment or signing contracts:
Does the franchisor have a track record? - Ask to meet or speak with other consultants or people who have bought into the franchise so you can ask them about their experiences and the success they're achieving.
What's included in the franchise fee? - Investigate what you get for your investment, including the quality of the start-up materials/pack/advice and the level of ongoing support from central HQ.
Is your territory protected? - Most franchises operate on the basis of buying into a particular postcode, and once you've secured this space, no-one else will be allowed to operate in it. It's worth checking that this is guaranteed in the fine print and questioning if not, why not?
Starting a home business through a franchise is a great way to start. Admittedly, there's an initial outlay of cash but what you're buying into is a proven idea and business model. You benefit from the freedom and flexibility of being your own boss whilst still being part of a team; it's like self-employment with added support!
Emma Jones is founder of Enterprise Nation, the home business company, and author of 'Spare Room Start Up - how to start a business from home'
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