More than half of all small businesses are now run from owners’ homes. And they’re not just hobbies: 6.6 million of them supply 50% or more of household income. Two-fifths employ two to five people. Ten percent have more than five employees.
Helping spark the trend are fast home Internet service, smart phones and so on. Also, a high rate of joblessness and growing frustrations over balancing personal and work time make working full time from home appealing to many people.
See Our Slide Show: 10 Fast Growing Home-Based Franchises
The flexibility to run a franchise based around your hours and needs -- be it a part-time or full-time venture -- is part of what makes it an attractive option to many entrepreneurs, says Kelly Sweeny, vice president of U.S. sales at Jazzercise, a home-based franchisor. “It allows you the option to work on both ends of the spectrum and offers you the flexibility to have your franchise grow with you as your life changes,” she adds.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Several firms offer home-based franchises -- some for minimal investment -- though start-up costs can vary widely. A Jazzercise franchise, for example, can be had for $3,000. A cruise-planning agency – under $2,000. But Lawn Doctor -- a lawn care service -- requires franchisees to have at least $40,000 in liquid assets.
The range of investment costs in starting up any franchise typically depends on what services you choose to offer, the work needed to prepare a home workspace and any home-business permit costs that may be required by your community.
Laws pertaining to permits for home-based businesses differ depending on where you live. Some of the variables focus on whether you’ll have employees working in your home, the amount of client traffic to your home and neighborhood and whether you’ll have a sign on the outside your house.
Profits vary wildly, too, depending on the number of clients, hours of service and variety of services offered. While some owner-operators can make six-figures, others make decidedly less.
Companies that offer home-based franchises are prepared to train clients, putting them through business development classes and other educational programs. Relationships with the parent company often remain strong after franchisees are up and running -- with regional support groups, toll-free hotlines, newsletters and field evaluations. Rooter-Man, for example, provides its franchisees with advertising and Internet services plus a helping hand for grand openings.
A caveat: Keep an eye out for “make money fast” scams that promise high levels of return quickly from the comfort of your living room. These scams usually come in the form of flyers or e-mails and have become increasingly more common as people struggle to make ends meet in tough economic times. Common ploys often involve envelope stuffing, assembly or craft work, rebate processing or online searching, according to the Federal Trade Commission. This FTC site has information on avoiding unscrupulous operators.
There are also business opportunities in serving “homepreneurs,” catering to their needs for technology, specialized tax assistance, office equipment, etc. Tax preparation, for example, for home-based businesses can be tricky, so start-ups should consider getting expert advice.
-
Four Lessons for a Happy, Successful and Wealthy RetirementChristine Benz, Morningstar director of personal finance and retirement planning, explains the key lessons from her book on retiring successfully.
-
What to Expect From Bitcoin and Other Cryptocurrencies in 2025With help from Donald Trump, the cryptocurrency industry is expanding rapidly. Here's what to expect from bitcoin in 2025.
-
Europe Faces Economic and Political Headwinds Next YearThe Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Kiplinger Outlook: Telecom Companies Brace for Tough TimesThe Letter The telecom industry is entering a new era that threatens profitability. But the coming Trump administration will make it easier for the major players to adjust.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
AI Start-ups Keep Scoring Huge SumsThe Kiplinger Letter Investors continue to make bigger bets on artificial intelligence start-ups, even for small teams with no revenue. Some backers think a startling tech breakthrough is near.
-
Should We Worry About the Slowing U.S. EconomyThe Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
