Home-Based Franchise and Asian Cottage Industry. The franchising or duplication of another firm’s successful Asian home-based business model is referred to as a home-based franchise. Home-based franchises are becoming popular as they are considered to be an easy way to start a business as they may provide a low barrier for entry into entrepreneurship. It may cost little to start a home-based franchise, but experts say that “the work is no less hard.” The concept of home-based business, as opposed to the previous terminology of “cottage industry”, first appeared in 1978. The phrase was coined by Marion Behr, the originator of a study to find out what businesses women throughout America were carrying on in their homes. The number of home businesses continues to grow due to the increases in technology. In Great Britain (UK) for example, an estimated 8 million people were running an online home-based business as of 2019.
Home-based franchise is one that doesn’t require a brick-and-mortar location, and can be run from the comfort of your own home. Home-based franchises are available in many different industries, including travel services, tutoring, in-home care, cleaning, business services, and home services. In addition, some franchise concepts offer home-based entry options with the opportunity to open a retail storefront later on. Home-based franchises tend to be on the lower-cost end, because no capital is necessary to obtain retail space or pay for the overhead a physical location requires. Every franchise requires different amounts of capital to get going, but there’s likely a home-based franchise in your price range. You can check out our page on low-cost franchises (link) as well.
Home-Based Franchising Is On the Rise
The franchising industry is the doorway to a world of opportunity. Thousands of franchises offer countless concepts, all with varying startup costs. And while many require a storefront and overhead expenses, a large number of them – ranging from commercial cleaning to dance fitness lessons to windshield repair services – can be operated right from home. Home-based franchises are becoming viable options for business ownership, enabling many new franchisors to grow their businesses more effectively and many more franchisees to get involved in the franchise industry. Expanded Home-Based Businesses. Numerous businesses, initially started as home-based, have expanded to become significantly larger operations. These include:
- Apple Inc., started by Steve Jobs and Steve Wozniak from Steve’s garage
- Hewlett-Packard, whose original location is now a museum, the HP Garage
- Amazon.com, internet retailer founded by Jeff Bezos