The prospect of launching a business can be daunting, but you don’t have to just pour all your savings into a new venture and cross your fingers. By choosing to start a franchise unit, you can use a proven business model and refer to your franchisor’s years of experience. And you can further reduce the risk by selecting a low-cost franchise…
Running a business is a dream for lots of people, but many are put off by the costs associated with launching a new company. This is where franchises offer the perfect solution. You don’t need to invest your entire life’s savings in a franchise unit or have any previous industry or business management experience. Instead, you can become your own boss for under £10,000 and learn all the skills you need as part of the package.
The benefits of investing in a low-cost franchise
- It minimises risk – As we’ve already mentioned, this is a safer route to business ownership if you don’t want to put all your savings into one venture. Franchising is usually a very reliable business format, but even if your unit doesn’t do well, you’ll still be in a safer financial position.
- It gives you the chance to try out being your own boss – If you’re new to business ownership or aren’t 100 percent sure you’d like to start a long-term, full-time business in your chosen sector, a low-cost franchise is a great option. With a >£10,000 franchise unit, you can dip your toes in the water before taking the plunge! If you decide it’s not right for you, you can easily sell your business on at the end of your contract term – or earlier if the franchise agreement allows. You stand to make a decent profit, as low investment costs help you reach your break-even point fairly quickly.
- It gives you the chance to work part-time – Many low-cost franchise opportunities offer part-time or flexible working hours. As a result, they’re a great choice for would-be entrepreneurs who are exploring different career options. You can use your new venture to gradually transition from your current job into becoming a full-time franchisee as you grow your business.
>> Read more:
Start a franchise unit for under £10K
Here are four of our best low-cost franchise opportunities from different sectors. They all ask for a total investment of less than £10,000.
If you’d like to start a franchise unit and give back to the local community, you should consider joining Snak Appeal. This business sells sweets and snacks from branded boxes in offices and public places, and all the proceeds go to charity.
- Becoming a Snak Appeal franchisee: When you join this franchise, you’ll benefit from a wide potential customer base by selling healthy snacks alongside more indulgent ones. With a range of gluten-free and wheat-free products, you’ll even be able to place your boxes in gyms, schools and doctor’s surgeries to maximise sales.
- How much you need to invest: A Snak Appeal franchise unit costs £4,817 to set up. This payment includes initial charity boxes and stock and, if you’re unable to sell any products, Snak Appeal will buy it back.
- What you get for your investment: Snak Appeal uses an easy-to-learn business model, so you only need one day of training. The short course covers product knowledge, canvassing methods and customer relations. Also, this is a home-based business, so you can operate it from wherever you want.
Popcat’s Music Time
This franchise runs a variety of music and movement classes for pre-school children and the elderly. If you start a franchise unit under this brand, you would primarily be running musical development classes for babies, young children and their parents, but the business also uses musical therapy to offer sessions for older generations in care homes and sheltered accommodation.
- Becoming a Popcat’s Music Time franchisee: You will need to have experience in the education sector as well as an outgoing and confident personality – and a great singing voice, of course!
- How much you need to invest: For £6,800, you could open your very own Popcat’s Music Time franchise unit.
- What you get for your investment: When you become a franchisee, the business will make sure that you have all the tools to make your franchise unit a success. This includes a franchisee handbook and training in social media marketing.
You can become a qualified marketing coach for small businesses with Entrepreneurs Circle, helping local firms widen their customer base.
- Becoming an Entrepreneurs Circle franchisee: If you’re ambitious, savvy and on the lookout for an investment opportunity that allows you to help aspiring business owners, Entrepreneurs Circle wants to speak to you.
- How much you need to invest: You’ll need to make a total investment of £4,999 and you stand to generate over £160,000 in revenue after the first two years.
- What you get for your investment: In order to deliver a fantastic service, you’ll have access to the franchise’s tried and tested templates, workbooks and workshops. You’ll also get the chance to take part in a comprehensive online training programme established by the franchise’s founder Nigel Botterill. Once you’ve passed the Certification Exam at the end of the course, you’ll be ready to start a franchise unit as a qualified coach.
>> Read more:
This franchise gives investors the chance to set up their own full- or part-time cleaning business. Across its network, Nationwide Cleaners delivers a high-quality service to thousands of households in the UK.
- Becoming a Nationwide Cleaners franchisee: When you join this franchise, you can work from home and choose your own hours. You’ll also be given a sizeable territory with around 500,000 residents. And you won’t do the dirty work yourself; you’ll send your cleaners out, and they’ll be paid directly by the client, so you don’t even have to sort payroll.
- How much you need to invest: It costs £7,999 to start a franchise unit under the Nationwide Cleaners brand.
- What you get for your investment: This franchise runs initial and advanced training schemes to support franchisees over the first several months of operations. You’ll also get help with sales and marketing, and be given leaflets to hand out to potential clients.
Realise your business dreams with a low-cost franchise
There’s no reason you can’t become your own boss if you have a limited budget. With plenty of investment opportunities under £10,000 on the market, you can start a franchise unit to supplement your current career or dip your toes into the world of franchising. By taking this route, you can minimise risk and set yourself on a path to profitability.
Note: There’s a wide range of fantastic low-cost franchise opportunities out there, but a low franchise fee can occasionally be indicative of poor-quality training and support. Always talk to your future franchisor to make sure you’ll get all the help you need once on board.
Alice Tuffery, Point Franchise ©