Low-Cost, HomeBased Franchises for Todays Economic Climate.
The stereotype of the entrepreneur is someone who wants to take on the world and is willing to risk everything in the contest. Reality is more complex, however. Many business owners just want to earn a living without having to go to an office or mortgage their homes in order to get started.
Low-cost and home-based franchise business opportunities both live in the particular intersection where those two interests meet. And it's a busy street corner, according to Brian Miller, president and CEO of The Entrepreneur's Source, a business coaching company in Southbury, Connecticut, that helps potential franchisees identify suitable business opportunities. Uncertain employment prospects, changing employer relationships, and tight credit markets have combined to channel a great deal of interest into low-cost and home-based franchise businesses, he says.
"More people are looking to create their own destinies," Miller notes. "And home-based businesses can be easier to get into. They can be more affordable and have a lower overhead cost. And in some cases, they can be faster to profitability." Another important factor consists of technological advances that allow Internet-enabled businesses, including those based at home, to inexpensively market to the world, Miller observes.
Signal88 is a business opportunity that is both low in cost and well-suited for home-based operation. Reed Nyffeler, CEO for the Omaha-based franchiser of security services businesses says the minimum required investment is $80,000, for which the the company provides financing sources. And Signal88 works well when conducted from home. "The only thing you'd need to do is interview potential employees," Nyffeler says. "We suggest getting a virtual office or going to a coffee shop for that."
Signal88 offers would-be entrepreneurs an opportunity to participate in the huge security business as a franchisee backed by a proven system, Nyffeler says. The opportunity is suited to almost anyone who is comfortable using personal computers and the internet, as well as those with law enforcement and military backgrounds.
The company has 50 franchise locations-up from nine a year ago-and anticipates adding another 150 to 200 during the next 12 to 18 months, Nyffeler says. With that kind of expansion in mind, almost any U.S. market is in play. "We'd like to get coverage in every major market," Nyffeler says, citing New York, Los Angeles, Chicago, Dallas, and San Francisco as major metros on their short list for growth.
A different kind of security concern drives RetireCo. The company's licensees provide financial products and services to baby boomers, small business owners, and others seeking guaranteed lifetime income after retirement. "We offer the only "business in a box" solution that exists in the financial service industry," says Matthew McGonigle, co-founder and CEO of the Hartland, Wisconsin-based company.
RetireCo emphasizes professional marketing support, employing a consumer website, direct mail, telemarketing, and indoor and outdoor advertising to literally drive consumers to its licensees. Most reps do have office locations, but it can be run from a home office. Prices start as low as $2,500, based on location and type of agreement, McGonigle says. Licensees also pay monthly fees and participate in co-op marketing.
RetireCo has 12 locations, concentrated in the Midwest but with recently opened locations as far apart as California and New York. Several more are pending, McGonigle says, and for the next 12 months, look for RetireCo to expand nationwide. To start with, they're looking for a least one office in every state and major metro market, he adds.
Candy Bouquet International, Inc. is already familiar in many U.S. markets and is enjoying a surge overseas. "This year Europe is really hot," says Margaret McEntire, founder of the Little Rock, Arkansas, chain of candy and chocolate arrangements retailers. "We're adding stores in England, Scotland, Ireland, Norway, France, and Portugal."
The fall in the value of the euro is helping drive interest from Europe, McEntire says. With a franchise fee that starts at $5,000, even less-wealthy franchisees can open a Candy Bouquet store. About half keep operating costs low by working from home, especially in the beginning. "The majority of them start home-based and look around for just the right retail spot," she says. The concept's simplicity and flexibility mean franchisees can switch back and forth from home-based to physical storefront.
Candy Bouquet has 557 franchises and anticipates adding 150 in the next 12 months. That's just counting new franchises awarded by the parent, McEntire adds. Master franchisers in other countries will bring on additional new franchises, such as one in Brazil that will add 50 stores this year and another 200 in 2011.
The majority of Environmental Waste Solutions affiliates work from home, according to Diana Shapiro, vice president for the Baton Rouge, Louisiana, waste and recycling consulting business opportunity company. The concept is well-suited for home operation because affiliates typically spend all their time at home performing the analysis and visiting businesses to make their pitch, which is: "We specialize in helping companies reduce costs associated with waste disposal and recycling; we don't charge an upfront fee for our services; and we simply share-50/50-in whatever savings we put in place." Shapiro says, "There is low overhead, which is nice."
Affiliates make a $25,900 total investment, making the opportunity on the low-cost side. And they pay no royalties. The parent company makes its revenues by participating in large consulting gigs that affiliates couldn't handle on their own. And business is good. The company increased its revenues by 50 percent during the recent recession, Shapiro says.
