If you’re looking for a business that allows for maximum flexibility and independence, then home-based franchises may be a good choice for you.
Over the past decade, home-based franchises have become more common than ever. This has coincided with the continued rise of franchising and the advancement of technology.
Many of the hottest sectors in franchising are those that encourage home-based franchise business models. These franchises generally have a lower overhead and a lower cost of entry than traditional franchise opportunities.
In addition, technology has revolutionized the way we conduct business, making it simpler to run a successful business working from home. With virtual meetings that connect you with individuals and teams, document-sharing capabilities for easy collaboration, and scheduling tools that eliminate the need for a receptionist – running a home-based franchise business is now more profitable, streamlined, and effective than ever before.
But are work-from-home franchises the right choice? Or is it better to invest in a traditional franchise opportunity with a dedicated location?
With the rapidly increasing demand for home-based franchise opportunities, it seems there’s a lot of value in this type of franchising. If you’re considering investing in one there are advantages to consider – from cost savings and convenience to improved work-life balance.
Let’s take a look at 5 of the biggest advantages that home-based franchises have to offer.
Why Choose a Home-Based Franchise?
1. Lower Costs
One of the biggest advantages of a home-based franchise business is that your initial investment and ongoing costs will be lower.
As a business owner, buying or leasing commercial space is one of the biggest upfront expenses. A home-based franchise business eliminates this expense, allowing you to start a franchise business with a much lower initial investment. And since you won’t be locked into a lease or ownership of commercial property, you’ll have less financial risk as well.
Without a physical location, you’ll also save money long-term. Maintaining a retail location or an office can inflate your overhead and eat away at your margins. The opportunity to run your franchise business from home gives you the chance to eliminate these costs. That way, you can retain a much higher share of your earnings.
2. Tax Deductions
In addition to lower upfront and ongoing costs, running a business from home comes with other financial benefits. By using part of your home as your workspace, you’ll become eligible for a range of tax deductions.
Direct deductions apply to any expenses that go exclusively to your home workspace and get claimed in whole. Indirect deductions are those that offer a benefit to the entire home, so they’re calculated based on the percentage of your home that gets used for work purposes.
Potential deductions include:
- Homeowner’s Insurance
- Homeowners’ association fees
- Mortgage interest and insurance
- Repairs and maintenance
- Cleaning services
- Utilities (heat, electricity, phone, internet, etc.)
3. Cancel Your Commute
According to the U.S. Federal Highway Administration, the average American worker spends almost an hour a day commuting to work. That’s more than 230 hours a year. But with a home-based franchise business, your commute is non-existent (unless you count walking from your breakfast nook to your office).
Cutting out your commute is a big deal for your business, your personal life, and your overall well-being. By avoiding time in traffic, you can take that time and redirect it to growing your business, spending quality time with family and friends, and doing the things that matter most to you.
It also means more money in your pocket. Between gas, wear and tear on your vehicle, tolls, parking, and the coffee you buy along the way, commuting costs add up, and you’ll be eliminating all of them.
4. Be Your Own Boss
Work on your terms. Owning a home-based franchise business provides unparalleled flexibility, allowing you to create a perfect balance between your professional commitments and personal life. You decide how you spend your time, prioritizing what is most important to you.
That said, there can be some downsides to working from home. Some people find it difficult to keep their professional and personal lives separate. Others find themselves more easily distracted.
But if you have a strong work ethic, are self-disciplined, and have good organizational and time-management skills it could be the perfect franchise business opportunity for you.
5. Franchise Support
So far, we’ve talked about the benefits of running a business from home. But what about the “franchise” side of the equation? Why not simply start an independent home-based business?
For starters, a home-based franchise comes with many of the usual franchise benefits. When you purchase a franchise, you are buying into an already successful business model that has been perfected over time. This means that you can hit the ground running and start generating profits quickly. You get industry training and corporate support. And you get an established brand for marketing your business.
These benefits can be particularly useful for home-based entrepreneurs, who typically operate as sole proprietors. Running an independent business as a sole proprietor can overwhelm even the most talented entrepreneurs. With so many roles to fill, it’s easy to make small but crucial mistakes or to find yourself without enough time for core tasks.
As the owner of a home-based franchise, you might still be a sole proprietor. But unlike an independent business owner, you won’t be in it alone. You can lean on the resources and support of your franchisor and fellow franchisees. With that support, you can focus more of your time and energy on your core product or service offering.
Now that you know more about home-based franchise business opportunities, what other questions do you have about becoming a Business Broker franchisee? You may find many of them answered here in our Resource Center.