What are the most profitable types of low cost franchise?
When you’re looking into franchise opportunities for the first time, one of your priorities will be to make sure that you are staying within a budget that is comfortable for you. Ranging from tutoring and holiday planning to restaurant ownership, franchises offer a world of opportunities. Read on to learn more about some of the more affordable franchise opportunities that you can turn your hand to and which of these are most likely to be profitable in the long run.
Risk or reward
When picking a franchise to get involved in, one of the first questions you need to ask is whether you’re willing to select a risky franchise that could see more profit in the long run or one which is more likely to see lower returns in the short term but remain consistent as a revenue stream.
In the case of a low-cost franchise, you should lean towards those that have at least some level of risk. This is because low-cost franchises in themselves are relatively low risk, and the lower revenue streams may struggle to initially cover your costs. By searching for the highest gains possible, you can establish your franchise for the long term.
Holiday planning
One of the best low-cost routes you can follow for franchising is holiday planning. The risk with this type of franchise is incredibly low, as are the costs, but the profits can be extremely high.
This is because holiday planners offer a service that many people don’t want to do themselves. Planning a trip away is the least pleasant part of annual leave, so starting a franchise as a holiday planner means that you have a captive market every holiday season, plus a reliable income as you can charge either a set fee or a percentage of the holiday’s cost.
One downside of these home-based franchises is that you may not have regular business all year round. Some seasons will always be less busy and combined with the potential for global events to affect travel plans, you will experience periods that are far quieter than others. This means that financial planning is key to ensure that you have sufficient funds available during the quieter months.
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Tutoring
Another low cost and high return franchise opportunity for you to invest in is tutoring. Again, this is a high return opportunity that is unlikely to see a fall in demand at any point. A quarter of the world’s population are aged 14 and lower, and the rate of young people is not decreasing. This means that there will always be students that need to be tutored, and if you have a relevant skillset, tutoring could be the perfect opportunity for you.
Tutoring is also available to those with a wide range of skills. The most common thought anyone has in regards to tutoring is that it is primarily an academic role, however, this doesn’t have to be the case. Parents that want their child to improve in the world of sports will engage with ex-professionals and experts to develop their skills, and the same applies to a wide range of hobbies and pastimes. If you have a skill, a tutoring franchise is a low-cost way of making high revenues from your talents.
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A fitness franchise
Recent years have seen a significant shift in the world of exercise, as people are engaging more often with online guided fitness sessions. While this hasn’t entirely replaced the traditional guided fitness class, it has left something of a gap in the market for those seeking a more personal experience. As with the other franchise options listed here, there are always those happy to pay whatever is necessary to get themselves into a better physical condition, making fitness franchises a great opportunity.
There are some prerequisites to starting a fitness franchise. For example, you will need to complete a series of first aid courses in order to make sure that you can look after your clients in case of an emergency, and training to become a fitness instructor can take a significant amount of time. However, once you are in the role, you can be confident in the knowledge that there will always be those looking for fitness instructors to help them achieve the body they want.
Discover Fitness Franchises.
Learn More
If you’re interested in buying a franchise, take a look around Franchise UK today. From event planning franchises to training franchises, you can get involved and take steps forward in growing your own franchise. For franchises that can bring you high profits at a low cost, Franchise UK has a range of options ideal for your needs.