I read an article from the Seattle Times this week about a Quiznos franchise that struggled for several weeks just to stay afloat after the owners disappeared. The manager and three employees stayed on with no pay in an attempt to salvage this sinking ship. Things got really bad when food vendors would no longer deliver on credit so the loyal employees were forced to pick up supplies, such as deli meat, from the local grocery store.
Stories like this are not typical of franchise models, but, of course, nothing is completely flawless. Franchises are the hottest business model today because they provide a proven system and product that tend to produce very high rates of success. The downside typically comes from the high start-up fees. A typical brick and mortar franchise can run between $430,000 and $750,000 with the majority going to pay for the building, equipment, and supplies. Forty percent of this cost has to come from your own (non-borrowed) funds.
Not all franchises today are brick and mortar businesses, however. In fact, there are many service franchises that can be run from your home. Entrepreneur Magazine has released it’s spring title of “Be Your Own Boss: 231 Low-Cost Businesses You Can Start Today!” It’s packed with several franchises options that range from $2,200 to $50,000 in startup costs and require small ongoing royalty fees that average under 10%. A great web site for additional information on franchise options is www.franchise.com
If these start-up costs are still a little high, consider starting your own service business. There are several great ideas Dan gives in his audio Turning Your Passions into Profits. Also, stay tuned for “Business Ideas You Can Bootstrap For Under $500!” an e-book that will be available to all of our subscribers for FREE in a couple of weeks.
Jonathan R Taylor is the author of The Coach's Career Tips and Resources. He helps his clients Love Their Work! You can subscribe at www.careercalling.com/subscribe.htm.
