Franchises are enlivening opportunities for entrepreneurs to start their own business. However, not all entrepreneurs have the resources or are prepared to start a full-fledged business. Luckily, home-based franchises are a great option for entrepreneurs who want to start a small business.
What are the Advantages of Running a Home-Based Franchise?
Home-based franchises offer great advantages. For starters, they are very flexible when it comes to scheduling and thus allow the owner to find the appropriate balance between home and work. This means that they will be able to schedule plenty of time with their family while also performing their duties. Equally important, they are very cost effective because owners do not have to pay the associated building costs, such as rent, utilities and maintenance. Home-based franchises allow the owner to gradually shift from being part-time to full-time. However, the owner can easily adjust their operations according to their personal preferences.
What are the Disadvantages of Running a Home-Based Franchise?
A home-based franchise does come with certain drawbacks. Once business picks up, the owner may find it difficult to separate and balance their work and personal life. Therefore, home-based franchise owners must have excellent organizational, prioritization and time management skills. In addition to this, the owner must also continually switch gears between different tasks because they will simultaneously be the boss and employee. This means that they will have accounting, customer service and even housekeeping duties. As a result, home-based franchise owners work long hours because they normally do not have anyone else to help them. They may also be required to work evenings, weekends and holidays.
Important Questions to Ask
According to the Small Business Administration (SBA), entrepreneurs interested in a home-based franchise should ask themselves some serious questions. First, they must know if they can effectively work from home through analyzing their motivation, dedication, work ethic and space availability at home. In order to properly understand the duties and demands of their target franchise, they should consult with a current or past franchise owner. Second, they must verify if their state even allows them to run certain business operations from home. While most states simply require a business license, many also prohibit certain business activities, such as commercial food production in residential kitchens. Third, potential home-based franchise owners must have the right skills and personality traits to succeed as an independent entrepreneur. If possible, the entrepreneur should consider taking business classes at a local college in order to assess and improve their core competencies.