BY MARC KIEKENAPP | November 28, 2012
After several years of slower activity in new franchise unit openings, investors and existing franchisees have started investing in additional units to be positioned for an improving and growing economy.
Franchising offers an excellent investment opportunity in today’s economy. With interest rates on conservative investments hitting all time lows over the past several years, investors are looking for other avenues to amass wealth. Investors are also looking for investment opportunities that they can have more control of the outcome. So what does this mean to you? It is always prudent to watch what the leaders are doing and follow their lead. They understand that lease rates are at all time lows and the pool of quality employees are at an all time high.
Some people look at a franchise opportunity as a replacement for a lost job or an unwanted transfer to another division, while others looking at franchising today as an investment with a higher return than the conventional investments that have been made in the past in real estate or in the stock market.
If you are in a position that you need income in the near future there are several low investment franchise opportunities that can be the right choice for you. As you research franchises you want to focus on a franchise system that allows you to fill a “paid” position in that franchise concept. That way you can start paying yourself sooner as you build the business and will put you in a position sooner to pay your household obligations. Here are a few franchise opportunities that you may consider if this is your situation:
Home-based and mobile franchises are a great place to start! Generally the initial investments are lower, you don’t have to sign an expensive lease on a retail space and generally you will be able to fulfill a function of the business to help you with a personal income much sooner. As you build the business you can then transition into more of a managerial position and continue to grow the franchise. Just because it’s a low investment franchise without a location does not mean it is not a profitable franchise opportunity!
Franchise Concepts to Consider:
- Home Inspection
- Computer Services
- Senior Care
- In-Home Pet Care
- Children’s Education and Tutoring
- Energy Consultants
- Residential Home Painting and Repair
If you are researching franchise opportunities for a longer term investment that will allow you to keep your current employment and not fulfill an active daily role in the business, you will need to consider what franchise business would be the best choice for you. This is a business and will still need your attention! Be aware there is not a business that can be operated completely absentee. You will always need to commit to at least 10 – 20 hours per week. You will want to look at franchise concepts that operate effectively with an experienced manager and you will want to consider a franchise system that operates efficiently using a multiple unit growth strategy. Over 50% of recent franchisees are using franchising as their vehicle to financial independency.
Franchises Concepts to Consider:
- Hair Care
- Health and Wellness
- Tax Services
So if this is your first journey in franchising or if you are looking to add to your financial portfolio, 2013 is the year to consider opening your first unit or adding additional concepts. When existing owners are expanding and investors are now using franchising as a portfolio building opportunity it could be the time to start your journey to franchise ownership.