Can A Low-Cost Franchise Earn You High Profits?

Sure, there might be some great franchises out there. And there might be some low-cost franchises. But everyone knows if you want to make real money you need to invest a lot. Right? Wrong. There is no direct relationship between the amount you invest in a franchise and the amount you can expect to earn. That’s right. Though it comes as a surprise to most people, the amount you might earn with a franchise has nothing to do with how much you need to invest. There really are some great low-cost franchises. There are a few reasons for this. The biggest reason is the amount of the investment is largely a function of the kind of industry you are in. It’s been widely reported a McDonald's costs over a million dollars to open. If you think about it for a minute, that makes sense. To open a McDonald's, the owner usually builds a building. You’re already out of the “low investment” arena, but you aren’t done. You’d still need to pave a parking lot, put in a drive-through lane, and put up that big golden arches sign. All of that is expensive, sure. But we haven’t even talked about the inside of the building – tables, chairs, cash registers, freezers, grills, and on and on. It’s all those asset costs that drive the investment. That’s what makes restaurants one of the most expensive categories of franchises. You can say the same thing about any type of retail operation. You usually have to rent expensive space. You have to build out the space – carpet and shelves and lighting and signs – it all adds up. But now consider the other end of the spectrum – the low-cost franchises. What about businesses that don’t require expensive real estate? What about businesses that don’t need parking lots and inventory and signs? There are plenty of franchises that are service businesses. The owner works out of their home, or maybe out of a small, inexpensive office. Without the need to build and equip a large restaurant or retail space, the investment is much, much lower. How much? Many top opportunities have a total, all-in investment of under $150,000. Sometimes much under. Senior care is a great example. This is a business, just based on demographics, is projected to grow steadily far into the future. It is a rewarding, recession resistant business. It has a very high income potential. Many franchisees earn a net income of $300,000 or more! The opportunity is high, but the investment is low. What are some other low-cost franchises? There are tutoring businesses and coaching businesses and painting businesses and direct mail business, and many others – all of which have investments not much more than $100,000. And many, many of these franchisees earn large, six figure incomes. If you’re interested in exploring franchises focus on finding a business that you like. Don’t worry about how you’ll raise a million dollars. Chances are, you won’t need that much.

Now What?

Opt in on the next page to receive access to my FREE video archive. This library includes eight different tutorials that will teach you how to own a franchise the right way. FREE ACCESS ► Photo Credit: Shutterstock

In our new YouTube series, "Well This Happened" it's your turn to be the career coach! What would you do if you asked a coworker when the baby was due and she responded with, "I'm not pregnant." Watch the video and cast your vote b posting a comment on Youtube. We'll select one person from the correct answers at random to win free membership to the Work It Daily program. Good luck!

SHOW MORE Show less

If you've ever wondered what a Work It Daily (WID) membership could do for you, a letter we got this week provides a powerful example...

SHOW MORE Show less

There are 3 things hiring managers are trying to initially assess about you in the job interview. This video walks you through what they are looking for and offers insights into the right information to give them. Be sure to check out our free resources mentioned in the video too. They are:

SHOW MORE Show less

Last week during my Office Hours on Youtube, a client asked about how to deal with a workplace bully. After spending many years in corporate HR, I flipped to the other side and became a career therapist. So, I've seen both sides of this situation in the workplace. In this video, I discuss why people struggle to deal with bullies and what you can do to change the situation instantly.

This week, I did something that truly scared me. I sent an email to over 120,000 Work It Daily newsletter subscribers and asked them to answer the question, "What do we do?"

SHOW MORE Show less

A market correction is going to happen. When it does, layoffs will follow. I've been in the HR and recruiting industry for over two decades and have seen three recessions of varying sizes. In the video above, I explain how to tell when a recession is coming and what that means to you and your career. While many people will skip watching this. Or, will watch it and do nothing. I hope YOU are the smart, savvy professional who sees how important it is to prepare for unexpected, unwelcomed career circumstances.

SHOW MORE Show less

In this video, you'll learn how to tell if your career is plateauing due to the Executive Blues. You'll also learn what you can do to fix the problem and get your "executive energy" back so you can keep your career on track and set goals to reach new heights of success!

Want to watch the full video tutorial by J.T.?

CLICK HERE to get access!