Franchise Vs Home Based Business

Thinking of Buying a Franchise?inventory, payment on the business loan, and don't
At some point most Americans realize working forforget to send the franchisor a monthly royalty of
someone else in this day and age could be a dead4%-8% of the TOTAL SALES (not of profit)!!!
end or even worse an un-secure situation. Let's face itOnce you narrow exactly what your are looking for
a "real job" just doesn't cut it anymore and is a far crymake sure it is comfortable because you will be
from the American dream With America's currentspending a majority of your time on location, working in
growth of outsourcing and pay raises that can't evenyour business not on it. Your vacations and family time
keep up with inflation a majority of Americans arewill be limited.
looking for a way out, some may already have a clearThere is an Alternative Plan
vision and others just know they need to declareThere is a much less complicated way to achieve
independence from the rat race any way possible.financial independence and success without jumping on
A franchise agreement may seem like just what youthe franchise roller coaster that never stops. There is
need for a change in your career and life. After all,a viable legitimate way to earn an exceptional income
everyone already knows about Subway, Midaswithout the huge investment, the loss of freedom, or
Muffler, Dunkin Donuts, Dominos, and thousands ofthe sacrifice of time with your family. Many Americans
other businesses that have lines the streets and filledare discovering that they have options that were not
the strip malls of North America. Hopefully theavailable a year ago. When comparing this new
information brought to light here can save you thebusiness model (NBM) against the traditional business
years of frustration that most new business ownersmodel (TBM) here are some things to consider. TBM
experience when attempting to work the traditionalinvestment 25K-2.5M, avg. 5 years until profit, 15%
brick and mortar business or start a franchise.profit, and 15 hour work days. NBM 2-25K investment,
As a franchisee you'd have the privilege of being ableavg. return in 30-60 days, 75% profit, 3 to 5 hour work
to use the company's name and recognizabledays, no employees, no inventory, no rent, no
storefront, and trade secrets. Franchise fees can beinsurance, less taxes, and more freedom. In addition,
quite reasonable (most under 40K) but that's only thesome of the nations top financial authors and gurus
beginning.are touting this home based business movement as a
You will need an upfront investment that amounts toorevolution destined to create more millionaires than any
much more than the franchise fee. For example,other industry in history.
survey results in the article "Annual FranchisingMore and more Americans are running multi-million
Overview" (Bond's Franchise Guides) showed anddollar businesses from the comfort of their own home,
average of $27,300 for a motel franchise-butbut where did they start? Unless you already have a
estimated startup capital or line of credit wasproduct and a strong advertising and marketing
$6,600,000. Yeah that's with 2 commas. OK that's abackground I would recommend starting online with a
motel; how about a small-scale shop that sells donuts,discerning eye, not all home-based businesses are
pizza, cookies, chocolates, or bagels that carries ancreated equal. Some sell buckets of hot air while
average fee of $24,676? Estimated startup capitalothers have a great product but lack the system,
was still a whopping $261,165. In addition to arrangingtraining, and support that make all the difference to
this financing most franchisors will have requirementsyour bottom line. Since there is no limitation on how
for your personal net worth so call the accountant youmany different home-based businesses you can
are going to want to look good on paper. Oh and callparticipate in, I recommend starting with a top tier
your lawyer too, your going to want them to go overprogram that has a turnkey proven system in place
the contracts. These contracts will bind you to theand avoid following a lone individual. Look for a
franchisor's terms, which will include restrictions,professional team with the proper support in place,
requirements, and specifications that will be imposed onyou'll find the training is well worth the entry-level cost.
you forever. You must also qualify for licensing.Top Tier Direct Sales opportunities have a much higher
But let's say you've got enough saved up for the fee,success rate then do low cost "old school" MLM
you meet all the requirements, and attain the propermodels simply because they do a lot of the heavy
licensing, it sounds like a sweet deal, doesn't it, whatlifting for you, in effect making it very possible to
could go wrong?replace your current income in less than 6 months. If
Owning a franchise is not easy, and anyone who goesyour looking for the easy way out or get rich quick
into one believing that the business will run itself isdeals this is NOT the business for you. You should
destined for failure. In fact, you may feel like your stillexpect to reinvest your initial earnings back into building
working for someone else once you discover all theyour business. Non-the less it is still better then
responsibilities that come along with a franchisespending years building a successful career just to feel
agreement. You will be dealing with employees (sometrapped in it as you very well may if you signed a
unreliable), customers (some complain), and yourfranchise agreement. If you are ready, willing and able
contact people at the parent company-in effect, yourto learn new skills, overcome obstacles, and
new bosses.persevere. Make a choice to start looking past your
Do you have enough money to run the business until itjudgment long enough to get the facts about
starts turning a profit? Factor in payroll, employeehome-based businesses.
training, equipment, rent, maintenance, insurance,