What Are Low-Investment Franchises?

Even if you do not have enough resources, you can materialize your entrepreneurial spirit with a little investment franchise. You may see 20...

Even if you do not have enough resources, you can materialize your entrepreneurial spirit with a little investment franchise. You may see 2016 Top Low-Cost Franchises from Entrepreneur's Franchise 500 List, published on Entrepreneur.com.

The best business idea is not always the one that requires the greatest investment. This is excellent news for those who are anxious to undertake but do not have a high starting capital. If you are already convinced to have your own company, the first step is to inform you about the opportunities available in the market.

A "turnkey" model, such as those offered by franchises, could be the ideal choice if you also have no experience in business matters. In addition to giving you a brand that will help you attract customers from the start, a franchise will provide you with the know-how and training to operate without significant complications, and you will be part of a collaborative network that will allow you to grow.

What they are and where they can operate

It is worth defining what is meant as low investment franchise. Estimating the price ranges, these include those brands whose total investment (including the franchise fee) does not exceed $ 300,000. For this same reason, it is common that over time the franchisee acquires more than one unit to generate more income.

There are also other models with investment ranges that do not exceed $ 50,000. These are micro franchises, one of the types of franchises with social impact. These are designed to support the base of the pyramid by representing an organized, professional, standardized and institutionalized business alternative for this segment to increase its income and improve its quality of life.

Another feature of these franchises is their operating format since in all cases it is not necessary to set up in commercial premises. Some concepts can be operated from home, on mobile models, or on islands or kiosks within shopping centers. In this way, certain costs and expenses (rent, electricity, water, gas, telephone, salaries, etc.) are reduced, and with a good sales volume, profitability becomes more attractive.

By the same token, not any turnover can enter this category of franchises. There are some that are perfect: candy, jewelry, aesthetic and repair of footwear. However, it's hard to imagine a restaurant, an auto service shop or a spa as a business that can be developed with little investment.

Identify and compare the different options that exist in the market and, before deciding where to invest your money (little or a lot), analyze and investigate thoroughly the options that are most attractive and, especially, those that best suit your profile. 

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