Which Franchise Business Model Is Best For You?

The best franchise business model will vary from person to person. It’s going to depend upon your budget, your interests and whether or not you want to work a lot in your business, or hire people to do it for you.

In this article, you can read about four different goals for your franchise and figure out which way you’d like to go with yours.

 

Type 1 – Work At Home Franchises

The home-based business should be a cheap to run business that gives a great deal of flexibility in your lifestyle and working hours.

If you enjoy working at unusual times of the day, or like the idea of climbing out of bed, grabbing a coffee and going to your “office” in your pyjamas, a work at home franchise could be right up your street.

A work at home franchise will often involve either using the telephone or Internet connection to work.

Make sure you’re comfortable with the type of work, and not just in love with the idea of working without commuting.

On the flipside, if you’re ambitious and want to employ staff, it’s not going to be so easy to do from a home based business. Employment agencies will often refuse to provide staff to home businesses because of legal issues and it’s also not great to have your staff walking around your home when you’re trying to get your undergarments dried.

 

Type 2 – Self-Employed Franchise

If you currently have a job “working for the man”, the idea of doing your own thing can have a great appeal. Going self-employed is the first big step up from working for somebody else and if you’re strongly independent and enjoy doing your own thing, working for youself is a great release from the pressures of being employed.

Watch out though, for the pressures of having your own business to feed.

The big problem for the self employed (and this goes for the work-at-home franchise too) is that you have to find work and then do it. This leads to a familiar situation for anybody who works for themself – the cycle of feast and famine.

The cycle goes like this: when you’ve got no work, you have no income and so go crazy generating new business leads. Once you’ve got busy again, you spend all your time doing the work and none generating leads and so as the work dries up, so does your income.

You can have mad weeks when you generate loads of income, but spend it all during the empty weeks. In the end it can be a very stressful existence.

Our recommendation is that if you are motivated towards a self-employed or work-at-home franchise, try looking for a business model that lets you build up a list of customers who keep buying from you, rather than you having to work for every penny you earn.

 

Type 3 – Owner/Manager Franchise

This is the normal business dream – to own and manage your own business, and have staff to do the work while you enjoy time spent with your best customers.

Alas, the dream isn’t always so easy to achieve in practice, but this kind of business venture has a lot going for it. As the hands on manager of the business you can make sure that the franchise systems are being followed exactly to maximise your profits.

You will need to be a competent manager of your staff and when you have staff, you’ll need to make sure that the system helps you to select people who will be effective at running the franchise’s systems.

The wonderful payoff for the effort you put into managing your own staff and franchise is that when you go on holiday, you’ll have a team there who can keep things running for you while you’re away.

This is the big advantage of the owner/manager franchise – it means you keep making money even when you’re not there for short periods.

 

Investor/Owner Franchise

This level of business ownership is the ultimate. You invest in a business franchise and employ a manager to build and run it for you.

By choosing a manager with the right skills and motivation to run the business, you’ll be able to enjoy profits without having to spend more than a few days per month directly involved in the business.

This is the approach to business ownership that the truly wealthy entrepreneur business people enjoy.

It’s more hands on than investing in paper, like on the stock market, because you’re able to influence and control what the business chooses to do. But you don’t have to get your hands dirty too often to make it happen.

 

Look In The Mirror Before Committing…

In conclusion, you will benefit from taking a look in the mirror to decide what you want from your investment in a business, before you decide what will, for you, be the best choice of franchise.

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