A Work From Home Business Franchise could be one of the best new business options you can have if You have limited resources. This means buying something called a “business opportunity package”. We will explain the ins and outs of this kind of business in this article and after reading it you will have a clear understanding of what it is and whether it’s the right choice for you.
With a business opportunity package, you are purchasing a system of doing business that often comes with an instructional manual or a video. You pay up the costs of purchase one time and there are no royalties to pay, but unlike a regular franchise, there is often no support or training either. All instructions and material arrive with the “business opportunity package” and beyond that, you are on your own.
These are often called “turnkey operations.” The reason for this is that all you have to do to launch the business is buy the package, read the material, study the manual or video, “turn the key” and hey presto! you’re in business. While some of these opportunity packages cost $100 or less, there are others that cost thousands of dollars. The product is often an auxiliary line complementing other products or services. Gifts, housewares, cosmetics etc. are some of the types of products you typically get to sell in these work from home business franchises.
A business opportunity package is obviously not exactly the same as a regular franchise. The difference lies in the fact that with a business opportunity you buy and own a business outright and operate it under a name you choose. It simply gets you started. On the other hand, when you buy a franchise, you enter into a partnership with the franchising company, one that will exist as long as you are in business.
The advantages of buying a business opportunity package include:
- They are less restrictive to operate than a franchise
- They cost less to purchase
- There are no limits on the business owner’s selling area
- They do not require strict operational standards
- There are no ongoing royalty payments
- There is complete freedom to run the business
On the downside, these are the considerations:
- Income expectations are considerably lower than for a regular franchise opportunity
- These don’t provide the buyer with trademark rights, neither do they offer ongoing support
- Essentially, after you buy into the package, you are cut loose to succeed or fail on your own
- You may be restricted to selling only the manufacturer’s merchandise
One word of caution, though – carefully investigate any Work From Home Business Franchise you’re considering. Get a list of references from the parent company and call them. Get all the details and the refund policies in writing. Get a lawyer to look over any agreement drafted by the parent company. Make sure you receive a disclosure statement. Take the time to find out how long the company has been in business and whether or not there have been any complaints filed against it with the Better Business Bureau.
Typically, for most buyers, a Work From Home Business Franchise provides the chance to cut one’s teeth in business or generate a small additional income. The question is, is that enough for you?