The practice of investing in a home based franchise has picked up speed in the last few years. If done cautiously, there are many benefits of working from home. Read on to know about the common slip-ups and their remedies
Taking a home-based franchise is the best alternative if you wish to manage a business from the comfort of your home. As more and more individuals are opting to work from their homes due to various family obligations; this concept has gained currency in India. Due to many advantages like low start-up cost, optimum flexibility, part or full-time working option and being one’s own boss, the home-based franchise offers many benefits. In spite of all its benefits, there are some common mistakes made by franchisees in selecting and managing a home-based franchise.
Slip-ups by the franchisees
Business is not a personal space: It is a well-known fact that mingling personal and business affairs can hamper the functioning of a business. A home-based franchise is not about running a business from home and at the same time one can be with family members simultaneously. Frequent interruptions from family can create havoc for performing business tasks efficiently. Moreover, flexibility afforded by having a home based franchise does not mean that there should be no schedule at all. Remember to make an office schedule separate from that of the home schedule and strictly adhere to it.
For this, it is imperative for the franchisees to have a separate office with the required set up for running the business successfully. Remember to treat your business professionally or no one will consider you professional. Clients visiting your work place should get the feel of a professional set-up.
Lack of considerations for legal issues: There are a lot of legal formalities that have to be taken care of before stepping into home-based franchising. For example, in India every state has different rules and regulations with respect to working from home or having a home-based business. Many franchisees take a home-based franchise without confirming its legality in their home town. Consequences have to be faced in case such a scenario exists. It is advisable to study the rules of the state, before investing in any home-based franchise.
Lack of management: One major shortcoming of this concept is the shortage of man-power. A home-based franchisee prefers to do multi-tasking in order to save money. This can be hazardous and might result in incomplete tasks or unfinished business.
Lack of seriousness in home-based franchise: A few franchisees invest in a home-based franchise believing that it would be easier to manage. Although there is more comfort in owning a home-based franchise, a franchisee can not totally disregard its seriousness. Moreover, remember to invest only in that concept in which you are interested. An entrepreneur needs to be passionate and optimistic about his business and can only succeed if he likes what he does. Therefore, taking a franchise just because it is home-based is not right.
Keeping low charges: As a strategy to attract footfall to their franchise, many franchisees keep the cost of their products and services very low. But the month end’s tabulation of your sales may make you realise that you have not earned any profits, rather incurred losses. Prior to setting prices for products and services, franchise owners need to determine fair market pricing of the industry, and establish an optimum pricing strategy. Do not forget that incoming revenue is the financial nourishment to your home-based business in order to stay alive.
Lack of web support: In today’s times every business needs a website, more so a home-based franchise. A website is a powerful as well as a low-cost medium to reach out to the masses. Lot of franchisees do not realise that a home-based franchise needs a website than any other franchise business because it is carried out from home where it has little scope to network with the external world. All franchisees should remember to make a website. The sooner you make one, the better it would be for your home-based franchise.
If you are also a prospective franchisee, aiming to manage a successful home-based business, this article can save you from many blunders that new franchisees make. Keep in mind the above slip-ups to own a successful home-based franchise.