Who you, a Guru? After you read these 230 Franchise tips, you'll be one. But we're looking to recruit a Guru to blog, write a 101 tip Franchise book, and become a leader of this community.
Hot topics for both consumers and webmarketers on WebmasterRadio.FM
Every Wednesday, 4PM Eastern.
Home Based Franchises
Home Based Franchises can be a great way to start a home-based business. Some popular options include:
• cleaning or janitorial services • on-site vehicle maintenance • mobile windshield repair • staffing • bookkeeping • direct mail • tutoring services • selling assorted products (gift baskets, personalized namesakes, tools, medical supplies, etc.)
Any business you can think of to run from a home base probably exists as a franchise set-up somewhere. Many franchise directories even allow you to browse home franchise opportunities. Check out the zoning codes in your town to make sure you can run a home based business before you get too far into the research though. Some towns restrict home based businesses to avoid traffic and noise problems.
Save Tip
Comments
Tip Rating
Evaluating Earning Potentail of Home Based Franchises
It can be difficult to evaluate earning potential for any business but even more so for home based franchises. The tax write-offs and other benefits are a major consideration for many who are drawn to small business ownership, but making sense of earnings projections isn’t always easy.
Use these common sense steps when evaluating earning potential of home based franchises.
1. Knowledge. Franchisors are not required to make earning claims but if they do make a claim then the Federal Trade Commission (FTC) requires them to substantiate those claims. Request an earnings claims document and read it carefully.
2. Read between the lines. Remember, you are reading legal documents so the wording tends to be very precise. For instance, if a franchisor states franchise owners earned $50,000 last year it doesn’t mean that EVERY franchise owner earned $50,000…it just means some franchise owners earned that much. It might have been a very small number of franchise owners who earned $50,000 last year. Ask how many franchise owner or what percentage of franchise owners earned that amount.
3. Average and Medians. Closely related is the use of “average” earnings. Remember, if one franchise owner earned $100,000 and another earned $1 then the “average” was $50,000. While technically correct, it doesn’t provide an accurate method for you, as a prospective business owner, to estimate what your anticipated earnings would be. A few very high earning franchise owners can bring the overall average up significantly.
4. Gross versus Net. Don’t be easily impressed when you hear large gross sales – they mean nothing without the net! Gross sales simply tell you how much money was collected but without knowing what your expenses are, it is not a reliable indicator of profitability. Remember, if you set up a lemonade stand as a child and sold $5 of lemonade but it cost your mother $6 for sugar and lemons then you weren’t really profitable at all! Calculate the cost of doing business!
5. Saturation. Even the best home based franchise opportunities can reach a point of saturation where less growth is anticipated. Be sure to pay special attention to trends, territories and other factors that could impact your franchise and remember, past performance is never a guarantee of future performance!
Save Tip
Comments
Tip Rating
Home Based Business
If you base your business in your home, you won't be alone. Low interest rates have convinced many people to tap into their home equity as a funding source for their home-based business. If you don't have enough business experience to convince a bank to lend you money, you might want to use some of your home equity as the funding source. You should also check out the Small Business Administration classes and information to help you learn as much as possible. The SBA also provides some funding for small businesses and might be a source of funds for your home based business.
Save Tip
Comments
Tip Rating
Home Based Franchise Opportunities
Franchises can now be found in almost any business category. In fact, franchising has become one of the main sources of new businesses. If you look in the various franchise directories for home-based franchise opportunities you're likely to see a long, varying list of options. Mobile service businesses are common, of course, as the actual business services are generally conducted in the consumer's home or business establishment (this makes it easy to base the business from a home). Some of these businesses include:
• windshield repair • car detailing • carpet cleaning • housekeeping or janitorial services
The list doesn't stop there, however, so be sure to explore any and all options. Think of any home based business and you're likely to find that someone has set up a franchise for it. Look into the ones that most appeal to your wants and needs as a business owner.
Save Tip
Comments
Tip Rating
Scheduling Time for Your Home Franchise
* Stay on Track
Making a schedule and sticking to it can be crucial to the success of your home franchise. Make sure you have a specific working area for your home based franchise (preferably a room with a door you can close).
* Avoid distractions
It is important not to be distracted by household chores that need doing when you should be running your business. And, if you have friends and neighbors that tend to drop in, let them know you're working these particular hours and need to get back to it (if they insist on dropping by when they know your schedule, just don't answer the door during your scheduled working hours).
* Take a breather
Don't forget to schedule some breaks for yourself while working. You won't have the normal interaction and breaks that come about naturally in an office environment. In a home franchise you need to make sure to take a few minutes for yourself now and then (don't burn yourself out). Get out and take a walks, schedule lunches with friends or simply sit back and relax every now and then.
Save Tip
Comments
Tip Rating
Setting Up a Home Based Franchise
Running a home based franchise is like running any other home based business. You need to make sure you can ignore the household chores that might be calling to you. You should have a separate office space to work in (preferably with a door between you and the rest of the household). At the least, you'll need room for a desk, a computer or two, some filing cabinets, and some storage space.
You should have a second phone line for your business so callers always get a professional response. In fact, if you're out of your office a lot, consider hiring a service to answer the phone for you rather than using voice mail. It costs more but it's beneficial to you to project an image of professionalism.
LifeTips is part of ideaLaunch, the hub for a group of websites offering
solutions that help clients improve mind share, market share and profit online.
