Low Cost Franchises - UK Opportunities
Starting your own venture is much easier when you look into UK low cost franchises. Although you’ll still have to come up with financing, they have a much higher rate of success than privately owned businesses. There are plenty of other reasons to invest in an affordable opportunity.
Why Look Into Inexpensive Franchises
Inexpensive investment opportunities allow UK franchise owners to tap into a successful business model, even at a moderate start-up cost. You could reap benefits such as these:
Proven Business Plan and Revenue Model
A company needs a solid business plan behind it to maximise success and profitability. Joining a franchise means that you will already have a plan. It won’t be just any plan either. It will be a plan that has proven to be successful.
Operations and Training Systems in Place
If you go about things by yourself, you’ll be left on your own to do everything regarding running your venture. This includes things like accounting and training employees. Instead of spending weeks and months fine-tuning and developing your own procedures, you can take what has been known to work and apply it immediately.
Franchisees are provided with all the training they need.
Supply Arrangements With Volume Discounts
Every company needs supplies. If you start one by yourself, you’ll have to find your own suppliers. Franchisors typically have arrangements with all the suppliers that you need for your business. This allows you to obtain supplies at much lower costs than if you were just a single enterprise dealing directly with a supplier.
Marketing Systems and Brand Name in Place
There are many cheap options in the UK with sophisticated and battle-tested marketing systems in place for recruits to leverage on. When starting up your own venture, you will have to attract new customers. The presence of effective lead generation and sales systems make it easy for franchisees to build their customer base.
The parent company also has an extensive advertising budget that will benefit all recruits. As a recruit, you can reap the benefits of the national marketing campaigns that they put forth. You will still need to pay for advertising fees on a regular basis, and that should be factored into the cost of running the establishment.
Getting potential customers to trust the quality of your products and services offered in another factor to consider. This is much less of a problem for licensees. They usually operate under a brand name that consumers already know and trust, or else have collected an existing file of testimonials for customers to back up their product claims.
UK Low-Priced Opportunities Start-Up Costs
Affordable UK franchises are good investments since you can get started with a modest amount upfront and can reach profitability much more quickly. With the less expensive ones, you can get find a number for as little for £7,500, sometimes even £4,000 or less. Entrepreneur magazine publishes an annual list of top 100 cheaper opportunities, defined as opportunities that can be started for under £40,000. Whatever the costs are, you want need to think about the initial investment versus your interest in the field of business and expected returns.
There are a variety of fees associated with joining a cheap franchise. First and foremost, you’ll have to pay a fee. This varies between companies, but you can find out what you need to pay in the disclosure document. A lot of companies require ongoing royalty fees as well, for ongoing use of their brand name and system.
If your company needs to operate out of a building, you’ll have to pay rent every month as well. The building will also need furniture and fixtures inside. Office equipment and computer systems will also be required.
The cost of starting a franchise varies. Some are relatively inexpensive, only requiring an initial investment less than £4,000. Some companies charge between £23,000 and £40,000 though. If you have the necessary funds, you could even find opportunities that require an investment from £75,000 to £2,300,000.
In addition to the upfront expenses, you also need to take into account the operating overheads. If you have to pay a lot of fees and other payments every month, then it can put a significant dent in your profits.
In general, the more well-known the name, the more expensive the licensing fees could be. With well-known companies, your chances of success could be increased just because of that. That’s why some people are willing to pay a premium for the name.
At the same time, there are top UK brand names that can be started for less than £7,500. It’s not just about the licensing fees, the total start-up investment also includes fixed equipment investments and office rentals can quickly bloat up the cost of starting a new enterprise, regardless of the brand name.
The lowest price ones around are those that can be run from home and do not require heavy capital investments into it. So if you value a good brand name and but are on a limited budget, look into those with these two characteristics. You can find a lot of cheap franchises that are home-based. They’re much less expensive since there’s no building to rent. You would even have the option of running it on a part-time basis. That would be a great option if you already had a full-time job.
7 Best Low Cost UK Franchises & Business Opportunities
You’ll find many different types of low investment opportunities to choose from in the UK. Some of them may not be offered in a traditional format in terms of their support and licensing agreements, but they are low cost opportunities which are currently available or to buy.
1. Plenty of people drive cars, so you could start a business repairing or washing cars. Other options include window tinting, radio/CD player installation, and security system installation.
2. Commercial cleaning options are also quite popular. There are plenty of companies in your area that need to be cleaned on a regular basis.
3. Many people also have pets. You could surely find a low price franchise that provides pet training or grooming. When people go on vacation, they would probably look to put their pet in a kennel, so that would be a great opportunity too.
4. Fitness is always popular, as evidenced by the many weight loss products advertised on radio and television. Gyms, fitness clubs, and nutrition centres aren’t exactly the lowest price ones though.
5. You’ve probably bought items from vending machines on many occasions. Starting a vending machine venture can be a great way to earn passive income. These machines could offer snacks, sodas, or even DVDs.
6. Everybody has to file taxes at the end of the year. Therefore, starting a tax filing service would be a great inexpensive UK franchise. Of course, you’ll need the necessary training, but a franchisor will provide you with everything you need.
7. Yet another option would be to become a travel agent. This is definitely an inexpensive UK franchise since you could operate it from the comfort of your own home. Home based travel agents can arrange cruises or other trips for individuals or even businesses.
As you can see, there are plenty of different options available at a lower start-up cost. Starting one is often the better choice if you’re looking to start a business since you’ll be provided with plenty of advantages. Just make sure that you choose the right one to ensure that you make a profit. It is also important to pick an opportunity that will engage your interest.