Buying a Business
There are four good reasons to consider buying a business to operate out of your home: location, time, money, and competition or market share. If an ongoing business has an ideal location, can save you time or money, eliminate competition, or provide market share, it might be worth paying for. The basics are listed below, but for more information on buying a business, check out Chapter 6.
Buying an Independent Business
It's entirely possible that someone in your area already has a home-based business that does exactly what you want to do — or close enough to make it worthwhile. Think about it carefully: If they have a good reputation, they'll have an extensive customer base and a lot of goodwill. If they're looking to sell, stepping into their shoes might give you a great shortcut.
Other benefits may include an inventory that's ready to go, ongoing contracts for services or the equipment that's needed to provide the business's products or services. One thing to watch for, however, is whether you can transfer the business's location into your home or whether the business's current home is part of the deal. In the latter case, you — and your family — need to decide whether it's worth the move from your house.
Buying Into a Franchise
A franchise is a business structure in which the owner of the overall company relies on individual investors to open their own branches of the business. The use of the company name, the products or services provided, and the marketing activities are all fairly centrally controlled in order to protect the reputation of the company and its other franchisees. You often have to prove to the franchise company that you have the skills, knowledge, and financing to make a success out of your branch: It's not as easy as plunking down your money and opening up the store.
If you are considering one of the work-at-home franchises offered by any number of companies across the country, have your own lawyer review all the contracts and paperwork — and be prepared to step away from the franchise agreement if your lawyer suggests that the terms are too stringent.
Once you're in, you should expect to receive a fair degree of assistance, but this is something you need to check on before you sign up: Some companies are better than others. Many have “operating manuals” for you to follow, so that you're not wasting your time when it comes to developing processes, and they'll often conduct national marketing campaigns that will help to drive customers your way. Of course, this all comes at a cost: Fees vary from a few hundred to thousands of dollars, which might pay for everything from the exclusive right to use the franchise name, an exclusive territory in which to use it, a client list, or even a storefront.
