Are you looking to start your own business but don't want to go through the hassle of building a brand from scratch? Investing in a franchise concept might be the answer you're looking for. But with so many options out there, it can be overwhelming to find the right fit for you. In this blog post, we'll explore how to find the best franchise concept with low startup costs.
Start with Your Skill Set
Before you start your search, it's important to take stock of your skills and interests. As Bill Davis, co-host of the Investor Financing Podcast, points out in the video, a good franchise concept should align with your skill set. In the case of Jose, the person asking the question, he has experience as a project manager for a property management company and is handy. Based on that, Davis recommends a home service franchise.
Look for Low Overhead and High Profit Margins
Another important factor to consider when searching for a franchise concept is the cost of starting up and the potential for profit. Davis recommends looking for home-based businesses with low overhead and high profit margins. This way, you can start small and scale up as your business grows.
Research Established and Emerging Franchise Concepts
Once you have an idea of what kind of franchise concept might be a good fit for you, it's time to start researching. Davis recommends looking at both established and emerging franchises. Established franchises typically have 50 or more locations, while emerging franchises might only have five or six. The key is to find a franchise concept that has proven success but also has room for growth.
Take the DISC Test
In addition to researching different franchise concepts, Davis recommends taking the DISC test to figure out where your skills are and what type of franchise would be the best fit for you. The DISC test is a personality assessment that can help you understand your strengths and weaknesses and how they relate to different types of businesses.
Finance Instead of Putting All Your Money In
Finally, Davis recommends financing your franchise concept instead of putting all your money in. This way, you can keep some of your nest egg as a safety net while still being able to start your business. Davis suggests putting down around 50 or 60 thousand dollars and financing the rest.
Conclusion
Investing in a franchise concept can be a great way to start your own business with the support of an established brand. By starting with your skill set, looking for low overhead and high profit margins, researching established and emerging franchises, taking the DISC test, and financing instead of putting all your money in, you can find the best franchise concept with low startup costs for you.