5 Advantages of Low Cost Franchises
Low cost franchises are a great way for entrepreneurs to start their own business without “breaking the bank.”
Even if you are an experienced business owner, there are numerous benefits to starting a low cost business. But it’s important to keep in mind that there are many factors to consider besides just “affordability” when evaluating a franchise.
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Benefits of Low Cost Franchises
1) Easier Startup
If you’ve done your research already, then you know that many franchises, such as restaurants and fast food
establishments, can cost hundreds of thousands or even millions of dollars. This makes it extremely difficult for cash-strapped entrepreneurs to start their own business.
If you are looking for a more affordable business, without a huge investment, then low cost franchises are
definitely the way to go.
2) Faster Profitability
A lower initial start up cost enables you to achieve profitability much faster, if not right away. Large-scale businesses require such enormous investments that it can take years – sometimes a lifetime – to make back that money, even if the business is profitable on a month-to-month basis.
That could provide a big payoff for your children or grandchildren, but what about you? A more affordable
business allows you to see a return on your investment faster, so you can put those profits right into your
3) Less Debt
If you don’t want to be in debt for millions of dollars, right from Day 1, then you need to search for businesses that have low start-up costs. As mentioned above, the larger franchises can cost millions – and if you don’t have that liquid capital available to you, then you could be paying off loans and IOUs for the rest of your life.
4) Easier Scalability
Low cost franchises are much easier to scale, because the start-up cost doesn’t leave you millions of dollars in the hole. As you grow your business, you have stronger cash flow, which enables you to make decisions that will fuel your growth even faster: by scaling to more locations.
5) Easier Operations
When you make an extremely large investment, you are left with a very big burden, and a lot of stress. You have to make sure you can pay the bills and afford to pay staff – otherwise, the business crumbles apart. With a low-cost business, you have more flexibility, which means less stress and more cash flow to run your operations smoother.
What to Look for in Low Cost Franchises
Keep in mind that there’s a big difference between “low cost” and “cheap” businesses. When evaluating
business opportunities, be sure that there is a solid business plan and proof that other franchisees are already achieving success. Look closely at projections and profitability, and be sure that “low cost” doesn’t mean you have to sacrifice support, training and help from the franchisor.
At HUMAN Healthy Vending, we are proud to offer one of the most attractive low cost franchises (More Info) available today. We’ve flipped the vending industry on its head with fresh, healthy foods that fetch higher profits per sale than ordinary vending businesses, and high-tech, LCD-equipped machines that attract customers in almost any space.
Contact us today to learn more about starting a lucrative, affordable business with HUMAN Healthy Vending.