Low Cost Franchise

A low cost franchise is a chain store operation that requires a minimum amount of money down to purchase ownership and offers the potential investor the know-how to get started. These businesses are typically classified as service businesses and have a relatively low overhead, relying on excellent service to customers to successfully gain a profit. Time is money in the service business, and can help an individual realize their dream of business ownership, while marketing an already familiar service or product. Many low cost franchises can be obtained without a business loan from a bank. Equity in a home may be used as the security for the start-up of a small business endeavor.

There are many interesting options available to choose from when seeking to strike out in a new self-employed operation. Common low cost franchise business options include strip mall fitness centers, and seasonal tax preparation services. Fitness centers and health food stores are gaining popularity with consumers because of the overwhelming problems with obesity and a sedentary lifestyle. All that is required is a small retail store front, exercise equipment, a few trainers, and insurance. With these investments comes a good monthly residual income. Low cost franchises such as these survive on residual income. Most marketing is done in the opening stages, and little is required for the continuing years, unless there is a drastic decrease in customers. It is advised that an entrepreneur, considering his own operation, begin by becoming aware of other similar businesses in the area, the potential for building clientele, and competitively pricing for their service.

Seasonal tax preparation is a great avenue for those who are not looking for a full time business commitment. The locations for these types of low cost franchises are temporary in nature and require nothing more than a good advertising campaign, a small office space, competent tax preparers and an effective computer tax software program. The key to success in this low cost franchise type is to offer tax services to people who normally would not be able to afford a CPA or Tax Attorney's services. The tax service receives its profit directly from the tax return, so accuracy in preparation of those returns is vital. These services also generate additional income from the offering of quick refund loans. These are generally charged at a percentage rate of the total amount of the refund in addition to the regular tax preparation fees.

Opening a self-employed business that is based on a name brand product or service can be a minimal investment to start up, or to operate. It is advised that a potential low cost franchise business investor determine which types of low cost franchises best suit their individual plans and situations and that it doesn't conflict with their spiritual beliefs. This includes whether or not they will open on Sunday or other days that are considered holy in their faith. "All things are lawful unto me, but all things are not expedient" (1 Corinthians 6:12). Once a person begins to slack off in their convictions, they begin to compromise on many other decisions which can and will affect the business and relationships.

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