Home-Based Businesses & Franchises Growing In Popularity
Are you looking for a business opportunity with lower budget? Sara Wilson at AllBusiness.com discusses the increasing viability of home-based franchises. The popularity of these businesses is benefiting many households nationwide as these home-based ventures generate at least 50% of the owner’s income, according to a survey by the Small Business Success Index. Franchise lawyer Harold Kestenbaum says of this trend, “More franchise companies have gone to the home-based model, when possible, since the tightness of the credit market has made selling the big-box franchises very difficult. The home-based model opens up the opportunities for prospects with lower budgets, which is a good thing.” Technology, likewise, has been more sophisticated that it makes possible working anywhere with internet connection.
Home-based franchises are becoming viable options for business ownership, enabling many new franchisors to grow their businesses more effectively and many more franchisees to get involved in the franchise industry.
The popularity of home-based businesses has been growing for a while now. Home-based entrepreneurship has become so common, in fact, that those running businesses from home have earned their own title, “homepreneurs,” and have become significant pillars in the economy. According to a recent survey conducted by Small Business Success Index and analyzed by Emergent Research, there are currently about 6.6 million home businesses nationwide that generate at least 50 percent of the owner’s household income. These businesses employ over 13 million people; 35 percent of them generate more than $125,000 in revenue, and 8 percent generate more than $500,000.
So what’s driving this trend? There are many factors, one of which is the struggling economy. “Home-based franchising is alive and well and, in this down economy, thriving,” explains Harold Kestenbaum, a franchise attorney who has worked with more than 100 franchise concepts. “More franchise companies have gone to the home-based model, when possible, since the tightness of the credit market has made selling the big-box franchises very difficult. The home-based model opens up the opportunities for prospects with lower budgets, which is a good thing.”
Additionally, as technology becomes more sophisticated, it’s easier than ever to operate a business from home and still portray a professional image. “As technology continues to offer more and more communications abilities, such as Web conferencing and seamless communication systems, home-based franchising will continue to be a viable option for many companies looking for qualified buyers and for buyers who wish to have the flexibility of working at a home base,” says Alisa Harrison, Vice President of Communications and Marketing at the International Franchise Association. …
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