Buying a Low Cost Franchise

Low Cost Franchising

Buying a low cost franchise is a great option for those who may have dreams of owing their own business but have smaller pockets from which to invest. Generally, low cost opportunities are those whose cash requirements range from less than £20,000. Once you determine what you can afford, you can begin the search for your new business.

Low Cost Difficulties

There are many types of low cost franchises for sale, ranging from home based businesses to niche new idea opportunities. Many of these businesses do not have a history of long term success within the markets in which they operate, so can be somewhat of a risk, hence the low price. Home-based businesses don’t require a shopfront which keeps costs down but may require you to travel to your customer’s location, so you will need to build this into your costs analysis.

Other opportunities such as vending machines operate within lucrative market places but the opportunities for growth are often limited and do not guarantee repeat business. Businesses that involve a seasonality element, e.g. lawn keeping, chimney sweeping can lead to cashflow headaches and once again provide no guarantees of repeat business.

Another popular area is kiosks and carts, which are often found in high traffic areas such as shopping centres or airports and sell anything from snacks and sandwiches to jewellery and gifts. Low overhead keeps costs down and profits high, and the ability to be mobile allows you to relocate to where your customers are but once again many of these businesses tend to be fad driven and therefore have short longevity.

Low Cost Advantages

Key advantages of opening a low cost franchise include lower risk and faster start-up time. Since most low cost businesses do not require a physical location or many employees to manage, overhead is kept low reducing the overall investment. And since you’re on your own, you can often make your own hours allowing you to control your work-life balance

Because a low cost investment is less risky the reward is typically not as big as with a higher investment opportunity. Less brand awareness, lower price points on goods and services, and high competition can all contribute to turning less of a profit, and self-motivation is also key to your success. If you need others around to constantly motivate and encourage you then a franchise may not be right for you.

The Clear Brew Opportunity

One low cost offering that seems to tick all the right boxes is the Clear Brew franchise offer. Priced at just £17,500 + VAT, the service is well established (2006) and operates within a very large market that has been around for centuries and offers a number of opportunities, including, pubs, clubs, hotels, sports clubs, social clubs and restaurants.  The franchise model, established in 2012, has proven to be popular with many individuals from a variety of backgrounds, its especially refreshing to know that no prior knowledge of the industry is needed.

The Clear Brew brand is now recognised as the leading UK beer line cleaning service but can still be operated from home. Its three weekly service works on a rota basis, so once a database is established any cashflow concerns are quickly alleviated. They also recognise the difficulty some people have in the early days of running their own business, so within the fee, they give you everything you need to start cleaning and make NO Commission Charges for the first three months. With this opportunity you are not alone, you benefit from the technical expertise gained from its 40+ franchisees whilst also being able to share their early days experiences and ongoing support from its central office. You are allocated a significant region in which to operate, with the potential to expand your business into taking on staff and covering a vast amount of establishments.

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