Low-Overhead Franchise: Keep Expenses Low and Profits High

No matter what kind of business you own, if your primary goal isn’t to make a profit, you won’t be in business very long. There have been thousands of books written about how to make money in business, but all the strategies boil down to one simple truth: to earn a profit, your income needs to be greater than your expenses. One way to do that is to invest in a franchise with low overhead.

What is Overhead?

Most business expenses fall into two categories: operating and overhead. Operating expenses are directly related to the products or services you provide for your customers. They include materials, labor, and the costs of the machinery necessary to manufacture your products.

Overhead is what it costs to keep your business running. Another way to look at it is overhead expenses are expenses that can’t be billed directly to the customer.

They fall into two categories: Fixed and Variable

Fixed overhead expenses are recurring monthly costs like rent or mortgage payments, electricity, telephone and internet service, and insurance.

Variable overhead expenses are harder to budget for as they change from month to month. They include things like shipping, commission fees, and inventory.

Identifying Franchises with Low Overhead

The most obvious sign that a business has a low overhead is that it doesn’t require a brick-and-mortar location. If you own a retail store or restaurant, your overhead will be high. Besides rent or mortgage payments, you will have maintenance, insurance, and utility costs.

If your business provides a service instead of selling a product, your overhead will most likely be lower, because you don’t have to worry about keeping inventory stocked.

The Benefits of Owning a Low-Overhead Business

Obviously, the less your overhead is, i.e., the less you spend running your franchise, the greater your return on investment will be.

But the savings start even before you open for business. Lower overhead fees mean lower start-up costs, meaning you can raise the needed investment more quickly, and get into business sooner.

Running your business without a brick-and-mortar location also gives you a lot of flexibility in your schedule. You can set appointments around personal and family obligations without having to worry about staffing a retail location.

Your payroll may also be less as these types of franchises usually require only two or three people to run.

It will also require less capital to expand your business if you don’t have a lot of overhead. Possibly, all you will need is another computer, maybe an additional vehicle, and another employee or two to handle your additional business.  

What Types of Low-Overhead Franchises are Available?

There’s a wide variety of low-overhead franchises available in many different industries.

They include:

• Personal Services Franchises: Travel agencies, realtors, insurance companies, mortgage lenders and photographers.
• Business to Business Franchises: Marketing, payroll, sales consulting, staffing, or recruiting services.
• Computer or Internet Franchises: Website designer, IT management, computer, and phone repair
• Home Services Franchises: Anything that has to do with the upkeep or renovation of a home, including house cleaners, landscapers, electricians, plumbers, remodeling services and interior decorators.

The Key to Choosing the Best Low-Overhead Franchise for You

Keeping costs low is only one part of the equation. If you don’t have enough business to generate income, it doesn’t matter how low your overhead is. You need to invest in a franchise that fills an underserved niche in the marketplace.

One option is the field of decorative concrete. Concrete Craft is the nation’s leading decorative concrete franchise. Our proprietary staining, stamping, and resurfacing techniques transform ordinary concrete, so it looks like more expensive materials.  In business for 15 years, our well-trusted brand is part of the Home Franchise Concepts family of brands. Our extensive training program teaches our franchisees everything they need to know to become an expert in the field of decorative concrete. And since our business model doesn’t require a brick-and-mortar store front, or more than two employees, our franchisees enjoy the benefits of low overhead.

Get Started with Concrete Craft Today

If you are interested in keeping your business overhead low by investing in the profitable home services industry, contact us today. One of our franchise advisors will be in touch to answer your questions so you can see if owning a Concrete Craft is the best investment for you.