Franchising is not just about restaurants and retail stores. There are plenty of proven home-based, work-from-home franchise opportunities available today that allow a flexible lifestyle. Some of the most popular and most successful home-based franchise opportunities in Canada include: computer consulting, education tutoring, online trading, senior care, landscaping & maintenance, cleaning and janitorial, financial consulting, marketing services, and home décor, which can range from floors to windows to painting.
The good news about home-based franchise businesses is the success rate. If you are a motivated self-started who is interested in working for yourself from the comfort ofyour own home, take a look at the home-based franchise facts and trends below:
1. According to the Home Based Business Institute, about 79% of home-based businesses will last over a three-year period.
2. An IDC survey indicates that the average income for income-generating home office households is $63,000 a year.
3. The majority of home based franchise businesses are in services, including business services, financial, janitorial, food preparation, computer consulting, and marketing. Construction accounts for 16% of home-based businesses, and retail accounts for about 14%.
4. Most home franchise businesses (more than 90%) are sole proprietorships, with the other 10% owned as partnerships or “S” corporations.
Running a business from home requires strict discipline for separating your home life from your professional commitment. Beyond the tax advantages of having a separate office space to conduct your business, it also makes it easier to maintain boundaries between work and home.
Working from home has its rewards as well as drawbacks. If you can stay focused, ignore distractions, and keep to a schedule, it could be the right option for you.
Franchising vs. Independent
When starting a home-based business, you can purchase a franchise or open an independently owned business. You have a wide range of business options for either route.
When you open a business on your own, you're responsible for all aspects of the business's creation. You develop the concept, plan your business model, write a business plan and make all decisions about how to operate the business. While that degree of control might seem tempting, it's also time-consuming and takes lots of trial and error to get right.
A home-based franchise, on the other hand, offers an alternative to starting your business from scratch. The parent company already has an established business model that you can run from your home. This includes all the branding, services, processes and regulations under which you operate. The business is ready to open as soon as you pay your franchise fees and complete the company-provided training.
Franchisees use the market research and expertise already completed by the franchisor. It takes a lot of the legwork out of starting a business. The parent company typically provides extensive training materials and resources as a framework for running the business.
Benefits of Owning a Home-Based Franchise
Becoming a home-based business franchisee comes with several perks. You get many of the same benefits as being a remote employee for a company, but instead you're the business owner. Specific benefits of owning home-based franchises include:
- Flexibility: When you work from home, you can keep your kids at home, care for a parent or set your own schedule. You're not restricted to the work-from-home policies that many employers implement when they hire remote employees. It can be a better fit for your lifestyle. Running a home-based franchise could help you improve your work-life balance compared to a traditional job or a business that you operate out of a commercial space.
- Minimal overhead: Since you're operating the business from your home, you don't have the massive overhead of securing a commercial location. Particularly, when operating one of the many home-based franchises that are service-based, a franchisee often doesn't need expensive equipment, which also saves money. It can be an affordable way to start a franchise and become a business owner.
- Ongoing support: Home-based business franchises provide support when you start and as you face challenges in your business. You have guidelines for operating the business successfully. Some franchisors also offer administrative support services, which saves you time.
- Ease of start-up: Many home-based franchises are ready to get up and running quickly. You don't have to search for the perfect commercial space, hire employees or set up multiple workspaces. This speedy process can help you move toward realizing profits more quickly.
- Branding: Franchises come with an established brand that many people may recognize. You can use that recognition as momentum for growing your home-based business. It can be particularly difficult for home-based businesses to gain a following without a commercial space that people might see.
- Scalability: Beginning as a home-based entrepreneur allows you to keep your business manageable in the beginning. Starting a full-scale business with lots of employees can be overwhelming. But if you start small, as you grow your client base and increase your business knowledge, you can scale your home-based franchise into something larger. You might hire employees who work remotely from their homes or eventually transition to a commercial space.
- Tax benefits: In addition to eliminating typical business overhead costs, you may be able to save money on your taxes. Using your home for business purposes may allow you to take tax breaks for utilities and home office spaces.
How Franchise Direct Can Help You Get Started
Franchise Direct is a comprehensive source for exploring franchise opportunities, including home-based franchises. You can easily browse the available opportunities to learn the specifics, including how much you need to invest upfront to start a franchise. The knowledge center provides helpful checklists, news and other tools that teach you what it takes to grow a thriving business as a franchisee.