Franchise Expenses Vs The Costs of a Home Based Business

Are you currently considering going into business for yourself? If so, you may be making a very wise decision since entrepreneurs that run their own businesses are commonly able to create a great deal of wealth for themselves. This is provided, of course, they utilize the most profitable and cost effective method for their needs. That is why it is best to avoid the franchise expenses associated with purchasing a business and stick with the concept of the home based business instead. Franchise costs can be prohibitive…..Purchasing a franchise comes with a number of related costs. You will need to assume all the costs of the physical business. This means you will need to outright purchase the physical real estate property or the leases and rent associated with the business. And, of course, the franchise expenses also include the rights to the name of the franchise and all the monthly costs of operating the business. Keep in mind that when you purchase an established franchise you will be required to operate it in a certain manner. That means you will not have much leeway to be “creative” with the operations of the business. This, in turn, means you will have to incur scores of additional franchise expenses you would probably otherwise wish to avoid. The Home based Business Idea…..With a home based business, you would not have to deal with such a problematic situation. Yes, there are costs with running a home based business but it would never be at the same price as franchise expenses which can be enormous. Procuring the rights to an already established home based business could cost in the neighborhood of a few hundred dollars to $20,000. Starting up your own home based business could cost significantly less. Reducing Costs: A Winning Strategy…. The monthly operating costs of a home based business are also dramatically reduced since you are, of course, running the business right out of your home. If you live in your home and operate your business out of an office building, you will be paying monthly mortgage on your home and rent on your office. When you have a home based business, you will only be paying the monthly mortgage payment. This allows your business to become more profitable since the overhead costs are greatly reduced and, in some cases eliminated.Once again, while it is certainly beneficial in many ways to run a franchise, the overhead expenses can be extremely difficult to overcome. When you cannot overcome the costs of the franchise, you won’t make a profit and even if you do the profits may end up being very slim.Since the goal of running your own business is to make money, the fact that you would be limited in terms of your profit potential is just not an acceptable option. In the past, dealing with the issue of franchise expenses was unavoidable. What alternative existed? There was none. Today, with the advent of the home based business, there really is no need to deal with franchise expenses which is certainly a positive thing.

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