The Thing To Know About LOW COST Franchise Opportunities

Sometimes risk-averse candidates look to mitigate the risk of starting a franchise business by looking at low investment opportunities. Hear why that can be VERY risky!

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As the Franchise Consultant, it’s my job to educate a candidate on what money buys. Because sometimes, what they’re trying to accomplish by investing in a low investment opportunity isn’t what they’re going to accomplish if they do it. How would I define a low investment opportunity in a franchise? I would define that as an investment of under one hundred thousand dollars. The key definition of a low investment franchise is that it will have low, fixed expenses. It will probably be a business that starts from home. For many people, this starts to tell a story that they like until . . . dun dun dun dun: I tell them that working from home doesn’t mean you’re working from home. What that means is you don’t have to take on the overhead of a location because you are mobile because you’re going out and finding your customers where they are.

What does that imply? That this is a sales-driven organization. When you say you want to invest in a low investment opportunity, what you’re saying is you want to be in sales! Most people don’t want to be the center of influence when they start a business. A low investment opportunity means that you are working from home, but that doesn’t mean you’re working from home. It means that your mobile, going out and finding your customers where they are in their business or in their home.

Most people have a horrible view of network marketing. However, the people who are consistent and persistent with network marketing go on to build multimillion-dollar organizations. People feel like network marketing is a scam. The reason that network marketing doesn’t typically work for the average person who invests in it is that it’s a low investment. The lower the investment, the more people can afford to do it.

Many people say yes because it’s a low investment and keep their full-time job and try to do this at night and on the weekends. But this opportunity requires a full-time driver to go find people who want to buy the product and then sell the dream to other people who want to build a business; that’s how network marketing organizations are built. If you prefer not to put in a lot of money, you have to put in a lot of time. Low investment, home-based franchise opportunities require a full-time owner who is focused on driving sales.

The level of investment going in does not correlate to the potential to earn money. In fact, these low investment franchises, where you are awarded a territory, are going to feel more like unlimited earning potential because of the number of customers that you need to build a massive business relative to the number of potential customers. During the course of running your business, some of the businesses will go out, but the new businesses will come in. It is a myth that the amount of money going in has any correlation with the potential to earn money.

Compare these low investment opportunities that are sales-driven to an investment that’s slightly higher, maybe fifty thousand dollars or so higher, but it comes with a proven marketing plan created by the franchisor. The marketing plan allows the franchisee to spend money in their community, getting the phone to ring to grab warm leads.

You don’t have to be an experienced sales professional to raise your hand and say yes to the opportunity. But you do have to want to grow into becoming a great salesperson if you want to be successful in that operation. You don’t have to be the salesperson forever. You don’t want the business riding on you. You want more freedom and flexibility to be that CEO. But if you are saying those things, the trade-off is a bigger investment.

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I’ve recently written a blog about low-cost franchises which you can read here:

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Key Moments:

0:00 What is a low cost franchise?
1:50 Beware of low cost franchises
3:26 Is network marketing a scam?
4:16 What is “network marketing”?
6:43 The franchise cost does not equate to earning potential
7:34 Why you should be wary of low investment franchises
11:07 MONEY buys you TIME
12:19 Explore franchise opportunities with Kim Daly for free

#franchisetips #franchisesecrets #businesscoach