Tax Advantages of Owning a Home-Based Franchise

There are a lot of benefits of owning your own business. You get to be your own boss, set your own hours, make your own money, and chase the great American dream of building an amazing legacy. Unfortunately, there are also a lot of risks that come with being a business owner and not a lot of resources to help you out of a tight spot. 

If you want to start a commercial cleaning business but you don’t want the risk of owning an independent company, owning a franchise could be the right move for you. Read on to discover some of the benefits starting a home-based franchise commercial cleaning business.

What Is a Franchise?

Before we dive into all the benefits of owning a franchise, let’s talk some about what a franchise actually is. A franchise is a business model in which you run a separate branch of a business that has already been established. While you are responsible for the daily operations of the business, you still have to follow corporate rules and guidelines.

As a franchisee, you must invest money upfront to purchase a franchise from the parent company. And while you’ll have to continue paying royalties to the parent company, much of the profits will be yours to keep. Some of the best-known franchise companies include McDonald’s and Domino’s Pizza.

Greater Chance of Success

One of the biggest benefits of running a franchise is that you have a better chance of success than when you start your own independent business. There are a lot of mistakes that can cause a business to fail and very little margin of error to learn them on your own. About one in five small businesses shuts down within its first year of operating, and half close within their first five years. 

When you run a franchise, you don’t have to figure out on your own how to run a successful business. The parent company you’re working with has already worked out the model for a successful business. You can follow their guidelines and have a much greater chance of creating a successful business.

Easier to Finance

Unless you’re independently wealthy, one of the first hurdles you’ll need to cross as a small business owner is financing. It takes a large up-front investment to start a business, and getting loan approval from a bank can be challenging. Banks know the stats on how many small businesses fail, and they may require some form of collateral before they’ll give you a loan.

However, banks also know how much more likely success is when you start a franchise. They are often more willing to grant financing to entrepreneurs who plan to buy into a franchise. Not only is it possible that you won’t have to offer any collateral, you may be able to get a lower interest rate on your loan when you buy into a franchise.

Lots of Resources

When you start a small business, you’re left completely on your own with no support outside of your circle of friends and family. You may not be able to go to any training classes on how to run a successful business. You’ll have to pay for your logo and branding, not to mention buying any equipment you may need to run the business.

By buying a franchise, however, you’ll have plenty of resources to help you along your way. The parent company will give you everything you need in terms of supplies, training, equipment, and support. They’ll also have ongoing resources for you to use as you begin to grow your business, so you won’t be doing it on your own.

Greater Buying Power

One of the biggest struggles small business owners face is being able to afford the inventory they need. When you’re growing a business, you may need to buy more or different inventory or invest in new equipment. But investing that money up-front can eat a serious hole in your profits, and it can be hard to keep the lights on while you wait to make that money back.

As a commercial cleaning franchise, you’ll have more buying power than you would running a small business. The parent company may help you finance these investments in the business. You’ll also be able to take advantage of the bulk discounts the parent company gets from vendors, making these investments much more affordable.

Built-In Brand Recognition

When you start your own business, one of your early challenges will be building brand recognition for your company. You need people to recognize your business when they see it and to know that you offer quality goods. You’ll have to pay quite a bit for branding and marketing in order to get the ball rolling on that sort of brand recognition. 

But when you buy a franchise, your brand recognition is already built-in. People know the parent company you’re working with, and they’ve already formed an opinion about their products and services. All you have to do is spread the word that that company is coming to town and then sit back and enjoy the recognition.

High ROI 

No matter what sort of business you’re running, one of the biggest things you’ll have to consider is your return on investment. You’ll invest in branding, marketing, inventory, building rental, insurance, and much more. You need to make sure that the money you make off of those investments is enough to cover the initial cost and give you a healthy profit margin. 

With an independent business, your return on investment can be variable at best. But when you own a franchise, you’re much more likely to see a high ROI. You have all the resources you need to succeed, so you’ll waste much less money on doomed initiatives and be able to skip straight to the effective ones.

Start a Cleaning Business Franchise

Buying into a franchise can be a fantastic way to gain the benefits of running your own business without as many of the risks. You’ll get the expertise and brand recognition of the parent company, which can help you to get more accessible financing and a higher ROI.

If you’d like to start a cleaning business franchise, check out the rest of our site at OpenWorks. We sell franchises with an award-winning national commercial cleaning and janitorial service company. Join our team today and start being a part of the movement that’s helping the world work better.