Investing in a franchise that allows you to work out of a home office has a great deal of benefits: Managing your own time, a casual environment, flexible schedule, low overhead, quick start-up. However, it is akin to any business or investment, it will take time, hard work, dedication and, before anything else, you’ll need to do your research and due diligence.
Via Inc.com, Issie Lapowsky addresses some of the basic misconceptions of starting a home-based franchise (or any home-based business for that matter) and the questions you need to ask when working with a Franchisor and choosing which one to invest in.
Some crucial points to remember:
- You will need to dedicate a great deal of time to grow your business.
- If your new venture replaces a full-time position, be sure to dedicate yourself full-time to your new business.
- Set-up a dedicated office space in your home. The more office-like it is, the more in “work mode” you’ll be.
- Be sure to choose a franchise that not only offers you a home-based opportunity, but a business you LOVE and can be passionate about. If you’re going to invest time and money, invest it in something you’ll enjoy.
- Make sure to have legal counsel. An FDD is a large and complex document that holds a great deal of information on the company you are about to invest in and the expectations made of you as a franchisee. Having a lawyer experienced in franchise law is the most valuable first step you can make in this process. They’ll help you understand the implications of the FDD, and should make changes, if necessary, that are in your best interest.
- Never, ever forget to do your due diligence and your leg work. A franchise consultant can help you with the due diligence and understanding of the pros and cons of each franchise.
- Engaging experts (a franchise broker, a franchisee of the system, a franchise attorney, etc.) is always a good move.
Investing in yourself, to run your own business with the support and proven systems of a franchise, is an opportunity to create excellent returns and a higher quality of life for yourself; just be prepared for your investment and understand what’s needed of you.
Would you prefer a home-based venture, or a business that got you out of the house?