Are you interested in starting your own business?
Since you are reading this article, I will assume you are interested in cheap franchises under $1000 that you can start today.
Well, my idea with this article is to provide you with a bunch of incredibly good franchise ideas that you can start at a very low price.
Running your own business is a dream come true to many Americans.
A lot of people desire to work from home or have the freedom and flexibility to do whatever they want whenever they want it.
One thing that stops many people when deciding to start their own business is a lack of funds.
We all fail to realize that starting a business is a lot more about the effort and action, and a lot less about how many funds you have next to your name. Hell, today you can even buy a business with no money.
When it comes to franchises, I consider them to be a great way to get into entrepreneurship. They are helluva better than launching a startup, which seems to be a hot thing nowadays.
Why are franchises better than startups, you might ask yourself?
For the simple fact that it’s a tried and tested model, and that all of the hard work has already been done for you.
There’s not much to figure out; and if you follow the model that someone else proved before you, you are gonna have it easy.
For example, hundreds of people have started a concrete business before you, so that’s obviously a confirmation that it’s possible and profitable.
This guide will help you start your own home-based franchise in no time, with a cost lower than $1000.
Why You Should Consider Buying a Franchise Under $1000
The benefits of running a franchise at a lower price, especially if it’s home-based, are endless. Removing work commutes every day will get you an extra hour or two, on average. Those hours can be used for something productive.
The good thing about being your own boss is that you choose the time you work and you don’t have to respond or justify your actions to anyone.
Another good thing about choosing a cheap franchise to start is that you have a lot of room to test and see if the business idea is going to work before you invest a larger amount of money.
If you build a home-based franchise, you’ll realize that the costs are low and that you will be saving a lot of money.
No retail space or renting an office space, a lot of tax benefits. These are all huge pros of getting a franchise under $1000 and starting your dream life.
Everyone wants to escape the rat race, and while all of the benefits and pros that I mentioned above sound very nice, it isn’t all so good and easy.
Can You Actually Start a Franchise Business Under $1000?
Yes, it is possible.
But I am not going to lie and tell you that this is an ideal business scenario. Most high quality franchises require a significant upfront investment. One of the biggest upfront investments is purchasing a franchise license, which for some businesses can cost tens of thousands of dollars.
For example, McDonald’s charges $45,000 for a franchise license. On top of that, you’d need more money for equipment, staff, land and other operating costs.
That’s why it’s important to remember that franchise businesses like these ones can’t be started under $1000.
What $1000 can get in you the franchise based businesses are a lot of the home-based ones. That actually might exactly be in line with what you are looking at the moment.
Things You Must Consider When Running a Home Based Business
Or any business for that matter. It’s easy to look at the upsides when they all sound so pleasing, and people often forget that starting any business has a bunch of downsides as well.
The temptation to jump right in might be strong, but I am asking you to consider the following things before you do it.
Am I Suited to Work From Home?
It may sound ridiculous, but not all people are suited to work from home.
Right from our birth, we are all being conditioned to fit into the system, without relying much on our own motivation or organizational skills.
We expect everyone else to figure that stuff out.
Well, running your own business, especially home based will have you going crazy at times.
It will require a lot of effort and discipline to stay on track and not let yourself fall into the traps that working from home carries.
Can This Franchise Meet My Financial Goals?
Have you done any financial planning? Have you looked at how much tax you will need to pay, what other investments you may need to take?
Do you know how long it will take you to reach profit and will the franchise under $1000 bring you enough profit to live the life you want?
These are all the questions you need to ask yourself.
Let yourself ponder on it for a couple of days, write your answers down, and then think about them for some time again.
Making any rash decisions can break your business.
Does This Business Fit My Set of Skills and Talents?
Buying a franchise that’s not related to your set of skills and talents, or that you are not passionate about is gonna have you spinning in circles.
Think twice about your talents and skills and whether they fit with the franchise you are looking to buy.
I am aware that many entrepreneurs are passionate about running the business, instead of being in one, and that’s completely fine.
But your interests and skills must align to a certain point with the franchise of your choice.
One thing that you have to remember is that most franchises offer training, so industry-specific knowledge will not be needed, but it helps if you have it.
For example, when purchasing a franchise like McDonalds, having previous hospitality and restaurant experience is a significant benefit.
Can You Open The Franchise Business at Your Home?
Depending on where you’re located, you will need to check with the authorities as a lot of countries and cities have zoning laws, and those define how buildings can be used in specific geographic placements.
Once you have answered these questions, you should be able to move on researching different low-cost franchises, and in this article, I am going to list a couple of those. I am only looking at those that can be started with minimal investment.
How to Research Low-Cost Franchise Opportunities
This is a crucial step you must take, and you should be looking to spend quite a bit of time researching all the opportunities and analyzing them thoroughly.
The best way to do this is by looking at FDD, which is short for Franchise Disclosure Department.
They will provide you with a list and specific information related to the franchise and help you make the right decision.
If I were in your shoes, I’d start by shortlisting which franchises are in your budget range, and then look at ones that seem interesting based on your skillset, talents, location and all the other defining factors.
What you must consider is the level of support you are getting from a franchise. You should be aware that the lower the financial entry is, the less support you will receive on the other end.
However, that doesn’t mean you shouldn’t have a list of questions to ask the franchisor. After all, without getting some of the most basic questions answered, the benefits of buying a franchise are significantly smaller.
Questions you should ask must be related to what kind of support and training is available, what tools and other investments you need, the fees and payments you can expect and similar.
My personal advice would be to hire legal help and make sure you have every detail covered and reviewed by a professional.
It doesn’t hurt to talk with as many franchises as you want. You could expect a decent amount of positive responses of people who are happy to share their advice, struggles and potential profitability.
That can give you a clear view of whether a specific franchise is a good option for you or not.
Keep in mind that every franchisor does his due diligence, and check everyone who is willing to buy their franchise. They will most likely do an employment history check, and ask you a bunch of questions to determine your skill level.
Once you have decided on a specific franchise, you should probably hire the help of a professional accountant and lawyer for advice on applying for a business license, forming an LLC or a corporation, and all the other relevant documentation.
You can also consult with a friend or a family member that has relevant business experience, or industry specific experience. For example, if they are a consultant or a lawyer, they can be of huge help to you when you are trying to set up your low-cost franchise.
It can also help you keep the costs lower – lawyers and accountants charge high hourly rates that can easily exceed your initial budget.
This can all be psychologically draining as most people have never dealt with opening their business and having someone to help can mean a lot.
But, it is also a good initial filter. If all of this seems too draining and stressful, it might be that running a business is not for you. You might be more equipped to freelance or start a side hustle; becoming an amazon product tester is something a lot of people are doing these days.
If you are set on starting a franchise business, here are top 7 cheap franchises under $1000 that you can start fast.
7 Cheap Franchises Under $1000 Worth Buying
We are starting off a list with an amazing business and a franchise you can buy. This type of business has an unlimited upside.
Sweep Surge is all about helping local businesses get more customers and leads by running sweepstakes offers through email, social media, and text.
It’s really easy to start a franchise from home with SweepSurge. All you need is to buy the franchise, create the website, and then sell to local businesses.
This is an evergreen type of business that can generate you a lot of money.
Local businesses should be looking to pay you a monthly fee to use your products. It’s one of those opportunities that are the ideal business model – set and forget.
This business can also be scaled and grown a lot, especially if you are in an area with a lot of businesses and a great community.
Sweep Surge you can start with an investment as low as $99.
Another franchise of the future-focused on the growing technology.
AppCoiner is a platform that catalogs all of the newest apps for mobile phones and allows its users to get paid to try and use the apps.
As you probably know, reviews are a big part of running any successful business.
Rarely anyone buys or downloads an app that doesn’t have a ton of positive reviews, and any app developers will be looking to use a platform to help boost their business.
You can start this business with an investment of $47.
The Six Figure Success Academy
As you might know, online courses have become increasingly popular in the last couple of years and they are not going anywhere.
These courses have become a primary way to learn and teach so much knowledge, and people will keep creating courses, while customers will keep buying them.
The Six Figure Success Academy is a system that helps you and teaches you how to interact with influencers in your market, and help you sell them webinar services.
They offer you the platform and teaching to create webinars and sell them to course creators.
You can start this business for as low as $799.
N2 Publishing is a National Print Advertising company that offers franchise opportunities for a franchise fee in the amount of $570.
N2 has a goal of connecting neighbors and neighbor based businesses in communities. N2 programs include creating neighborhood events, they give out magazines for free and have a lot of different tools for small businesses.
Their core business model is to help local businesses through local publications.
If you decide to buy an N2 Publishing Franchise, your job will be to sell advertising, host events and help small businesses in your area reach more people and get more sales.
Pajama-Man is one of the most popular low-cost franchise opportunities. Looking at its name, you’d assume that this is a fashion brand, but you’d be wrong.
Pajama-man is an insurance franchise. By purchasing a Pajama-Man franchise license, you have an opportunity to become an independent insurance broker. Once you become one, you can sell insurance from top insurance providers, and everything from home to health insurance.
Insurance industry is one of the industries with the highest demand – it is recession proof, and offers a ton of upsides.
To become an insurance broker, you do not need to have any prior experience. However, it is highly welcomed if you had any sales training or experience in your life, as this would help you sell more insurance packages.
You’d also be doing this all from the comfort of your home; and unlike many other insurance sellers, you will not be doing any cold calling.
All of the leads will be reaching out to you, which for someone with a decent sales background is an incredible opportunity to make a lot of money.
Credit Repair USA
Another franchise that you can start in the finance industry. Credit Repair USA is obviously the one focused on helping people with financial planning.
Once you buy a franchise license from Credit Repair, you can start your financial business in less than 2 days.
The good thing about owning this franchise is that they will be providing you with a ton of technology, processes and support, along the way.
Your main job is to focus on sales and landing deals; it’s also quite passive, because credit repair businesses are often sold as a subscription.
Clean Out Foreclosures
This cheap franchise business is also closely tied to the finance industry. However, its main focus is on cleaning!
When a foreclosure happens, properties are often left in a terrible state. Your job would be to come and clean foreclosed homes.
It’s a pretty straightforward business; it is recession-proof and evergreen. This is obviously not the ideal entrepreneurial job if you are going to handle everything by yourself.
However, if you are not afraid of getting your hands dirty, then this might be perfect for you.
We’ve come to the end of today’s article. I hope you have learned a ton about franchising, what franchises you can buy and start from home.
There’s a lot more you could learn, but I’ve shown you the initial steps you need to take and the best cheap franchises under $1000 you can buy today.