Over the past decade, home based businesses have become more common than ever. This has coincided with the continued rise of franchising. Unsurprisingly, there’s been a lot of overlap between these two trends. In fact, many of the hottest sectors in franchising are those that encourage home based franchise business models.
But is a home based franchise really worth it? Or is it better to invest in a traditional franchise with a dedicated location?
With the surging popularity of home based franchises, it seems like there’s a lot of value in this type of franchising. So let’s examine 5 of the biggest advantages that a home based franchise has to offer.
Why Choose a Home Based Franchise?
1. Lower Costs
By choosing a home based franchise, you can start a franchise business at a much lower initial investment. If you start a franchise that requires a physical location, this will be one of your biggest upfront expenses. A home based franchise eliminates this expense, making them some of the cheapest franchises to buy.
Without a physical location, you’ll also save money long-term. Maintaining a retail location or an office can inflate your overhead and eat away at your margins. The opportunity to run your franchise from home gives you the chance to eliminate these costs. That way, you can retain a much higher share of your earnings.
2. Tax Deductions
In addition to lower upfront and ongoing costs, running a business from home comes with other financial benefits. By using part of your home as your workspace, you’ll become eligible for a range of tax deductions.
Direct deductions apply to any expenses that go exclusively to your home workspace, and get claimed in whole. Indirect deductions are those that offer a benefit to the entire home, so they’re calculated based on the percentage of your home that gets used for work purposes.
Potential deductions include:
- Homeowner’s insurance
- Homeowners’ association fees
- Mortgage interest and insurance
- Repairs and maintenance
- Utilities (heat, electricity, phone, internet, etc.)
3. Cancel Your Commute
According to the U.S. Federal Highway Administration, the average American worker spends 348 hours commuting each year. That’s more than an hour of commute time each workday. But with a home based franchise, your commute is non-existent (unless you count walking from your breakfast nook to your office).
Cutting out your commute is a big deal for your business, your personal life, and your overall well-being. By avoiding time in traffic, you can take that time and redirect it to your business or time spent with family and friends. Plus, you’ll skip the increased physical and mental health risks associated with commuting.
4. Work on Your Terms
Working from home is a dream scenario for many professionals, allowing them to work where they feel most comfortable, and with the freedom to set their own schedule. As the owner of a home based franchise, you can enjoy the same level of comfort and flexibility.
That said, there can be downsides to working from home. Some people find it difficult to keep their professional and personal lives separate. Others find themselves more easily distracted.
But so long as you can maintain boundaries and discipline, a home business could prove the perfect setup.
5. Franchise Support
So far, we’ve talked plenty about the benefits of running a business from home. But what about the “franchise” side of the equation? Why not simply start an independent home based business?
For starters, a home based franchise comes with many of the usual franchise benefits. You get a proven blueprint for your business. You get industry training and corporate support. And you get an established brand for marketing your business.
These benefits can be particularly useful for home based entrepreneurs, who typically operate as sole proprietors. Running an independent business as a sole proprietor can overwhelm even the most talented entrepreneurs. With so many roles to fill, it’s easy to make small but crucial mistakes or to find yourself without enough time for core tasks.
As the owner of a home based franchise, you might still be a sole proprietor. But unlike an independent business owner, you can lean on the resources and support of your franchisor and fellow franchisees. With that support, you can focus more of your time and energy on your core product or service offering.
Searching for the perfect home based franchise? Call Murphy Business today at (727) 725-7090 for detailed information about our business brokerage franchise opportunities.