How to Be a Real Estate Agent: A Step-by-Step Guide

Business landscapes have changed dramatically since the turn of the century, and the generational shift in mindsets is very hard to ignore. People now appreciate that there are many opportunities outside of the traditional nine-to-five. About two-thirds of teenagers now state that they have intentions to start a company in later life. There’s also an increasing number of budding teen entrepreneurs. It’s the oldest cliche in the book, but if you’re good enough at something, you’re old enough. So, if you’re looking for teen business ideas, read on, as this guide will discuss the most inventive concepts along with the process of launching your venture. Why Starting as a Young Entrepreneur Makes Sense Finding ways to earn money as a teen isn’t anything new, and there are plenty of options ranging from delivering papers to flipping burgers. While they remain great options for many teenagers across the nation, there’s nothing wrong with wanting more.  Building your own company will require a lot of work. Nevertheless, there are many reasons to consider starting a teenage business: Break free from the financial restrictions of working for minimum wage, which is set by the Fair Labor Standards Act to be as low as $4.25 per hour. Many teen entrepreneurs earn more than their friends in traditional employment, while a small percentage can become millionaires before they’ve even graduated high school.  Owning a business offers young entrepreneurs a chance to take control of their life. This means working on something they’re passionate about while also setting a work schedule around schoolwork and other commitments. Better still, there is no threat of being treated poorly by an employer. It’s a chance to develop key business skills and gain experience. Even if the venture only lasts for a few years, the lessons learned are the perfect preparation for university, business school, or starting a business in later life.  Starting a business teaches you to be resilient and look for logical solutions to an array of challenges. This can give you a head start at a time when many members of the younger generation lack face-to-face communication skills.  As a teen, you have fewer financial commitments than adult entrepreneurs, which means you have time to help your business grow organically. This will instantly give any strong business concept a better chance of success because it’s a far less stressful environment to enter. You’ll also be able to invest your profits back into the firm. The thought of running a business and learning how to monetize a hobby carries a lot of appeal for the immediate future while it could be a chance to build a lifelong career in the process.  What Makes a Good Business To Start for Teens? If you’ve weighed up the pros and cons of starting a business if you’re a teen and decided it’s the way to go, your next step would be to determine what you want from a venture. A quick look at some of the best teen entrepreneurs highlights the fact that success can take many forms.  Ultimately, all business owners must find their own pathway. Still, some elements are common to top business ideas for kids and teenagers: Small initial investment: Low-cost financial investment opportunities are essential because most teens have very limited capital and would struggle to seek loans outside of mom and dad. Finding a venture with zero or minimal outlay helps combat this problem. Work from home: At-home business ideas for teens are highly popular because working from home takes the financial costs and logistical issues of finding commercial spaces out of the equation. It also buys you more time as there will be no pressure to start turning a profit right away. The fact you won’t need to commute is a plus, too. A project you’re passionate about: A fun and engaging business idea that allows you to work on something you love. Aside from making it more enjoyable, your passion will shine through to impress future clients and customers. A business idea that can make a difference: In general, younger generations care about sustainability and social responsibility. If these things matter to you, too, don’t be afraid to make them the core values of your business. If you care, audiences will too. Flexibility: The venture will likely start as a side hustle that fits around your other commitments. There are times when you may need to focus on school and can only dedicate a small portion of time to the business. At other times, you may have greater availability. A venture that supports this is vital. Ultimately, a good business venture for teenagers is one that’s enjoyable, versatile, and offers a fair shot at success.  The Top 13 Small Business Ideas for Teens Now that you know what to look for in small business ideas for teens, the big challenge is to find one that suits your personality, availability, and circumstances. Whether you’re 13 or 19, you’ll find the perfect business to start as a teenager by checking out the best options below. 1. Selling Art If you like drawing and have been searching for answers on how to monetize your hobby, selling artwork is one of the best online business ideas for teens you should consider. People buy artwork for gifts, home decor, and a range of other purposes. Over 2.5 million sellers use Etsy to earn money, and more than 60% of them are US-based. If they can do it, then so can you, especially if you have an eye for detail and the ability to create great products. Some of the most popular products are: Stickers, notebooks, and stationery Graphic designs, including personalized art Paintings and prints for home decor 2. Tutoring Everybody has a talent. If yours is something other people aspire to possess, there’s a good chance you could start a side business as a tutor. Tutoring for teens can mean anything from helping other students with their math homework to teaching people how to play an instrument.  Speaking of musical instruments, did you know that guitar tutors can charge up to $60 per hour? Even if you command half of that fee, you’ll only need a small number of clients to earn more money than you’d ever hope to earn from working in the local 7-11. You could also look to utilize your skill through the following ideas: Making use of your second language by teaching others online or offline Helping older citizens learn how to use modern tech like Facetime Teaching gamers how to master a particular title The options are virtually endless, meaning you can choose a small side hustle or look for something that could become a legitimate long-term business model. 3. Photography Services Many business ideas for teens encourage you to showcase your creativity, many of which can focus on selling a service rather than a product. Photography is a fantastic solution, although you’ll need to invest in a DSLR camera and accessories. Still, each job is a chance to perfect your craft, refine your style, and determine which part of photography you’d like to enter long-term. It’ll also look great on college applications for either business school or photography school. Some of the most popular events that you may be able to cover are: Sporting events - especially at college, amateur, or semi-pro levels Family celebrations - graduations, communions, and birthday parties Business photography - staff profile shots and photos for company sites As you grow your portfolio, you may also gain the opportunity to work on-spec for local news or media outlets. 4. Blogger, Vlogger, or Podcaster Services When thinking about the most successful teen entrepreneurs, especially well-known ones, the first thing that comes to mind is the world of digital media. For over a decade now, platforms like YouTube have provided content creators an outlet to make money through ads. Teen blogging, vlogging, and podcasting can deliver huge returns. Anybody can upload to YouTube, Spotify, or their own websites. It’s the perfect way to make your voice heard and discuss the issues that matter most to you. Monetizing your hobby is possible via: Sponsored content Offering paid content to your most loyal fans Merchandising The internet has changed how we consume media, and authenticity is now king. If you can provide it, content creation is a low-cost and low-risk venture. 5. Utilizing Social Media  If you’re anything like an average teenager, you’re already putting plenty of content online without realizing it. Likewise, you’re interacting with friends and online acquaintances through social media. If you’ve built a fan base, it could be your ticket to good earning potential.  According to some estimations, 270 million TikTok views per year could earn you $100,000. Influencers can also make money through Instagram and other social media channels. Moreover, you don’t have to grow an audience of millions. If your fanbase is from a distinct niche and shows good engagement levels, you can make money through: Getting paid to collaborate with brands Affiliate marketing where you promote products your audience will love Donations and gifts Older generations may find it hard to believe that you can make money online simply by building an audience, but you can. Don’t be afraid to try. 6. Playing Music Pop music has produced teen superstars for generations. Meanwhile, digital channels helped Justin Bieber get signed back in the day while the likes of Britney Spears, Iggy Azalea, and Billie Eilish all hit the big time as teens. It’s not only pop music where teens and young adults can achieve success. And you don’t have to hit the mainstream for playing music to become your perfect teen job. Even as a newbie, a talented wedding singer can get paid a good fee. You can also earn money as a musician by: Playing the local gig scene or getting festival slots Selling your music on CDs Playing at school graduations and other events It’s a great way to turn a hobby into a money-making endeavor while starting a band is the perfect outlet to hang out with your pals - besides, who knows where the journey will end. 7. Car Washing It’s likely that you’ve washed your mom or dad’s car for some extra money at least once in your childhood. As far as small, local business ideas for teens are concerned, it’s one of the easiest to get started.  There are over 287 million vehicles in America, and thousands of them are within a three-mile radius of your home. The majority of drivers want to keep their car sparkling but don’t have the time. You can be the person to take care of this for them. Some of the benefits include: The costs are minimal (sponge, water, shammy, car cleaning materials), while you can even find free marketing through social media and word of mouth.  You can arrange to visit a client at a time that suits you or even look for business in the local area when you have a few hours to kill. There is no need for a commercial setting, employees (although you could team up with a friend), or major business planning. It may subsequently open the door to starting a valet service or opening an office-cleaning business. Cleaning services will always be needed, making it a very stable business option. 8. Pet Care Approximately 68% of households in the US have at least one pet. So, if you start the business correctly, you won’t be short of customers. The pet care business could mean grooming dogs and cutting their nails. Or it could mean pet-sitting for cats when a family is away on vacation. Dog walking is another popular option because you get to spend time with furry friends and stay active. Pet care businesses are a good choice because: There is minimal outlay. In fact, it’s often completely free to get started. Once you have your client base, it’s regular work that you can fit into your schedule. If you don’t have a pet, this is the perfect backup. You can start this business by working for family friends before moving up to local customers when you are confident. 9. Open a Franchise Franchising may not seem like an accomplishable dream for a teen business. However, there are affordable franchises for under $10k. You may need to rely on your parents to help fund this option, but if you can commit yourself to the work, it can be profitable.  Opening a franchise can introduce you to running a business without the need to build a brand and help you gain experience managing a small team. You can set opening times to suit your needs, even if it’s only during the summer vacation, and if things go well, it may be possible to open a second franchise or get a friend involved.  10. Handyperson Servicing OK, so you don’t have a plumbing license or the qualifications to work as an electrician. Still, there are plenty of jobs around the home that people need help with or don’t have time for. They can be some of the best teen business ideas of all. Jobs for 15-year-olds can include fixing flat-pack furniture, handling basic landscaping duties, and cleaning a person’s property. You can even extend the work to completing daily errands for people with reduced mobility or a lack of time. There are many advantages of this type of work, such as: Each job can be different - one day, you’re mowing a lawn, the next, you’re making a cupboard There are early growth opportunities: For example, you can hire a friend to take on the jobs you can’t complete for a small cut The earning potential is a lot higher than the traditional jobs teenagers take on, like store assistants. If you feel that becoming a tradesperson is your future, this will be the perfect start before moving on to professional training in your desired field. 11. Online Retail Starting an online store is one of the best online business ideas for teens because the potential exposure is relatively low. Thanks to the growth of the global dropshipping sector, you no longer have to possess stock. Instead, you can promote and sell products on your web store before the order fulfillment company delivers them. Alternatively, you could look at print-on-demand services to sell a host of products like: Fashion (especially t-shirts) and accessories Phone cases, mugs, and small household items Greetings cards, photo books, and personal goods Dipping your toes into the retail sector in this manner requires minimal spending, and it could unlock a lifetime of success in business. 12. Creating Products When looking for cute business ideas, crafts for teens are an ideal outlet. Creating and selling products is an opportunity to learn how to run a business in a fun and engaging way. This type of venture will also make you learn about invoices and other business tools and documents.  Take advantage of the fact that people want various beauty products or fashion items to revamp their personal appearance. Aside from outlets like Etsy, your products could be sold locally at: A pop-up store that you run for a day or two Market stalls, trade show events, and other outlets By attending schools, businesses, or other relevant venues There are many examples of young adults who created products from their homes to become major brands. You could be the next GymShark in your chosen niche. 13. Web Designing  Small business ideas for teenagers don’t have to be that different from what adults provide. If you can design a great product or service, there will be opportunities to turn your talent into cash, regardless of your age. Web design services certainly fall into this category. According to the latest small business statistics, there are more than 32.5 million businesses in the US alone, and virtually all of them need a website. Whether it’s starting a website from scratch or revamping an outdated one, you can help. Major marketing firms charge thousands, so this is an opportunity for you to win clients by charging less. Your services may include: Designing responsive websites for WordPress and other popular CRMs Creating websites from scratch using Dreamweaver or other software tools Designing social media page layouts and integrations It’s one of the best business ideas for students, especially those studying web design or marketing. Once you have your qualifications and portfolio, your earning potential will soar. Teen Business Tips To Help You Get Started Whichever business model you think might be best for you, it’s vital that you think it through and launch it correctly. Many of the digital-based options can start out as hobbies and won’t need business plans or registrations until you start earning a reasonable amount of money. However, you should still record all transactions. Some of the best business ideas for teens do require you to register the business. You’ll probably launch a sole proprietorship, although you could need an LLC for ideas like a franchise. Other issues to consider are: Whether you need an employer identification number to pay employees Whether you need a small checking account to facilitate business transactions Any insurance coverages you may require, especially public liability If you’re unsure about how to start the company, speak to an advisor. They’ll point you in the right direction. Wrapping Up By now, you should be equipped with a range of businesses to start as a teenager and will have thought about the right solution for you as well as how to launch it. There will still be a lot of work ahead, from defining your target audience to finding the right bank for your business. Still, if you enter the process with a winning mindset, you’ll enjoy the ride and learn a lot. Besides, it has to be more fun than working a job you hate for $4.25.

Introduction S-corp and C-corp are used to describe different business structures and refer to the tax status of a company. Also known as S-corporations and C-corporations, these structures also determine liability protections for the owners of each organization. The following guide defines both C-corp and S-corp and compares the two tax designations. What Is a Corporation?  Both C-corps and S-corps are legal business entities where the shareholders aren’t personally liable for the debts of the company. These corporations are set up by filing Articles of Incorporation in accordance with local laws. The owners are defined as shareholders. A shareholder’s responsibility is limited to their investment in the business. A company registered as a corporation will also usually have directors and officers who run the business. When it comes to tax categories, C-corp is a default tax classification for corporations. However, companies that meet certain eligibility requirements can also choose S-corp taxation as an alternative.  C-Corp Definition Before we discuss the differences between S-corp and C-corp and analyze the pros and cons, it’s important to understand the broader definitions of these two structures. C-corp is the standard tax category for corporations. This is the most common corporate tax status and meets specific Internal Revenue Code requirements. Within this structure, owners or shareholders are taxed separately from the corporation. The shareholders pay a personal income tax, and the corporation is taxed independently. But this also means that the owners are effectively paying a double tax because the government taxes the company’s earnings and the owners’ personal income. S-Corp Definition S-corp refers to a corporate tax structure that offers an alternative to C-corp taxation. Rather than paying taxes on personal income along with a federal corporate income tax, the S-corp classification means that the corporation can pass income, losses, and deductions to shareholders to file on their personal tax return. S-corp is classified as Subchapter S of the IRS tax code. Businesses must meet certain criteria to become an S-corporation.  How Do C-Corporations Work? The C-corp tax class is the most common type of tax status. In other words, most corporations are C-corporations. Once you have an Employer Identification Number or EIN, the IRS taxes both individual and corporate dividends. That’s why C-corp taxes are commonly referred to as a form of double taxation, as owners aren’t permitted to write off corporate losses to offset earnings when filing personal income statements.  How Do S-Corporations Work? S-corp taxes don’t include a federal corporate income tax. If a corporation is registered as an S-corp, the company passes its income, credits, deductions, and losses to shareholders. The shareholders include income and losses on their personal tax returns and pay an income tax. With this system, shareholders are only taxed once.  S-Corp vs. C-Corp: What’s the Difference? We’ve already touched on the key difference between a C-corp and S-corp business structure. But it’s beneficial to delve deeper into how these tax structures impact different companies.  Formation For starters, there are several important differences during the business formation process.  How to become a C-corporation: After choosing an unregistered business name, you can set up a new entity by filing the Articles of Incorporation with the relevant Secretary of State. The business must appoint a board of directors, while those who purchase shares become owners/shareholders and pay personal income and corporate taxes.  How to become an S-corporation: Launching an S-corp also requires the business to have a legal name. Owners have to submit the Articles of Incorporation, obtain an EIN by filing IRS Form SS-4, and apply for all relevant permits. Additionally, any business that chooses to become an S-corporation or wants to switch from the default C-corp designation is required to file Form 2553 with the IRS. This form has to have all the details about the fiscal tax year and the signatures of all the shareholders.  There are certain criteria companies have to meet to become S-corporations, including: Have between one and 100 shareholders The shareholders cannot be nonresidents, partnerships, or other corporations.  Have only one class of stock Filing Tax Returns C-corporations file quarterly returns, while S-corporations file annual returns.  Additional Considerations It is also beneficial to note the differences in shareholder requirements between C-corps and S-corps. The number of shareholders is unlimited if your corporation is a C-corp. Meanwhile, the maximum number of shareholders at an S-corp is 100. It’s also important to be mindful of the IRS eligibility requirements for shareholders, one of which doesn’t permit nonresidents.   The table below offers a more comprehensive look at the differences between S-corporations and C-corporations:   C-corp S-corp Formation process Default tax structure: formed through Articles of Incorporation Articles of Incorporation + IRS Form 2553 Taxes Double taxation: personal income tax + corporate tax Single taxation: personal income tax When are taxes filed? Every quarter Every year Number of shareholders  Unlimited Limited to 100 Types of shareholders Anyone who is eligible Individuals + eligible estates, trusts, and organizations that are tax-exempt Shareholder location Domestic and international Domestic only Stock class Multiple One class IRS scrutiny level Standard Above average Raising equity Easier More difficult S-Corp Pros and Cons Before deciding which business structure is most suitable for your company, it’s important to weigh the pros and cons. Below are the main advantages and disadvantages of an S-corp tax status.  S-corp advantages: The main advantage of S-corps is their adherence to the pass-through taxation system that allows shareholders to avoid double taxation and only pay a personal income tax.  In some cases, the company’s losses can be passed on to owners.  S-corporations only file tax returns once a year. Reduced taxable gains Limited liability for owners and employees S-corp disadvantages: S-corp shareholder limit of 100  There are stringent requirements for shareholders, who must be US residents and cannot be partnerships. Only one class of stock allowed It’s more difficult to raise equity because S-corps tend to be less appealing to investors, such as venture capitalists. More intense scrutiny from the IRS C-Corp Pros and Cons C-corp advantages: Limited liability for shareholders, employees, officers and directors No limit on number of shareholders  Shareholders can be either domestic or international. Easier to raise equity than with S-corporations More than one class of stock allowed Lower tax rate C-corp disadvantages: Double taxation system which includes a corporate income tax and a personal income tax for shareholders. Gains and losses cannot be passed to shareholders, which means that they cannot write off losses on their personal tax returns.  May be more time-consuming to manage due to the rigid structure of the corporation.  What Business Would Benefit From Being An S-Corporation? The outcome of the showdown between S-corp vs. C-corp ultimately comes down to your individual needs. Some corporations are better suited for the former. Here are some scenarios when the advantages of the S-corporation status may outweigh the disadvantages: You do not plan to have more than 100 shareholders or any investors that don’t meet the eligibility criteria. You don’t plan to issue preferred stock to shareholders. All your shareholders are based in the US. You plan to distribute income to shareholders. C-Corp vs. S-Corp Tax Advantages: When Is C-Corp the Best Option? You may wish to consider sticking with the default C-corp tax structure if the following circumstances apply to your business: C-corp taxes would be lower for your business than S-corp taxes. You plan to launch an IPO. You are looking for investors who may not be eligible for S-corporation investments. You have more than 100 shareholders, or some of your shareholders are from overseas. You want to make shares freely transferable. You plan to offer shareholders access to preferred stock. Exploring Other Options C-corps and S-corps offer a range of benefits for businesses, but they are not the only options for companies. There are other types of corporations and additional structures to consider.  Other types of corporations include: Benefit corporations: These are also known as B-Corps and public benefit corporations or PBCs. The designation is held by for-profit companies that balance their responsibilities to shareholders with social and environmental performance. This is a state and not a federal designation, and it’s available in most states. Most B-corps are also C-corps, but they can apply to become S-corps.  Nonprofits: These entities become corporations for reasons that are not linked to generating profits. Nonprofit corporations are eligible for federal and state tax benefits.  Alternative business structures to explore: Limited liability company or LLC: LLCs are often considered the middle ground between corporations and partnerships. LLCs can be taxed in the same way as C-corps or S-corps but are not governed by the same rules and regulations. LLCs are often easier to run for small business owners. Sole proprietorships: Sometimes known as sole traders, sole proprietorships are regarded as the simplest and most flexible option for small business owners. With a sole proprietorship, the owner is only taxed at a personal level. This structure does not have shareholders and doesn’t allow stocks to be sold.  Partnerships: This structure involves an agreement between two or more people who are also taxed on a personal level. Business owners may also want to consider limited liability partnerships or limited partnerships.  LLC vs. C-corp vs. S-corp When setting up a new business or exploring options for an existing one, it’s helpful to look at the different structures and how they impact companies. Here are some key takeaways from the S-corp vs. C-corp vs. LLC comparison: Formation Forming an LLC involves choosing a business name, assigning a registered agent, filing Articles of Organization, drawing up an operating agreement, and applying for an EIN, also known as a  federal ID number. Once you’ve completed these processes, you’ll need to submit business licenses and permits and open a bank account. To form a C-corp, you’ll need to file the Articles of Incorporation. To become an S-corp, there is an additional IRS form to complete.  Taxes LLCs can opt for S-corp taxation, in which case the businesses avoid double taxation. C-corporation status is effectively a double tax, which combines a corporate and personal income tax.  Management Setting up and running an LLC is often simpler than managing C-corps and S-corps. This is why small business owners are often advised to consider an LLC or a sole proprietorship.  Shareholders C-corporations can have unlimited shareholders both in the US and overseas. S-corporations are limited to 100 shareholders. Shareholders must be US citizens and must also satisfy strict eligibility criteria. LLCs have members rather than shareholders.  Profits One major difference between an LLC and a corporation is that the former can be a pass-through business, while S-corporations are not. That means that all profits and losses are passed through to individual LLC owners, whereas S-corp profits are held by the corporation.   LLC vs. Sole Proprietorship A sole proprietorship is a business with a single owner who takes sole responsibility for the running of the company. There are no shareholders, and there is no legal separation between the proprietor and the business.  Meanwhile, an LLC is a legal business entity that can be created by a single person or a group of people. The LLC structure combines elements of corporations and partnerships, and it provides a lot of flexibility for business owners.  Here are some of the key differences between a sole proprietorship and an LLC: Formation: To form an LLC, you must file Articles of Organization, obtain the relevant licenses, and register your business name. To form a sole proprietorship, you simply need to obtain the relevant permits and register your name. Management: Multiple people can make decisions within an LLC. On the other hand, a single owner is responsible for making decisions with a sole proprietorship.  Taxes: Both entities have a pass-through tax structure. However, an LLC can opt for corporate tax status.  Liabilities: A sole proprietor is liable for business debts, while those who own an LLC are not.  The Best Option  There is no one-size-fits-all when it comes to selecting the appropriate business structure. That’s why it’s critical to take the time to research different options and compare the pros and cons of S-corps and C-corps.  Whether you are new to the corporate world or your objectives have changed, identifying the right avenue when registering your business will help you save money on taxes and provide you with the necessary liability protection.

If you want to own a business but don’t want to start from scratch and build a brand, buying a franchise is a great way to simplify the process and generate profits in the increasingly competitive world of commerce. In this guide, we’ll walk you through 10 steps on how to own a franchise. In addition to detailing the process of investing in this business model, the following information will help you identify the right opportunities and the ideal franchises for sale. Why Purchase a Franchise Before you can start thinking about owning a franchise business, you need to make sure you’ve chosen the right path. Evaluating the pros and cons is the only way to make a calculated decision. When you purchase a franchise, you’ll have to get used to a limited degree of creative control. So, if you’re hoping to develop products or add your own unique touches to an existing brand, you should probably steer clear of franchising. Franchise opportunities are spread out across a diverse group of sectors, including food and retail brands. That said, entrepreneurs looking for eCommerce opportunities may find affiliate schemes or Etsy stores more accommodating options. Of course, the range of possibilities with franchises is endless. Here are a few key findings about the state of franchising and its impact on the economy: Over 10.5% of all U.S. businesses are franchises.  Franchises create an average of up to 14 jobs, and a new one is launched every 8 minutes during any given business day. There are over 780,000 franchises in the US alone. The franchise industry reportedly accounts for around 50% of all retail revenue in the US. Some sources claim that franchises have a success rate of 90%. Even if that figure is slightly exaggerated, it easily outperforms startup ratios. Franchise opportunities allow you to start doing business right off the bat because the branding side is already taken care of. While you’ll need to work within the existing framework of the established company, you’re mitigating the risk of failure because you’re inheriting a system and brand that have already proven themselves on the market. How to Own a Franchise: Buying a Franchise in 10 Steps If you’ve decided that owning a franchise is the right business move, stick to our step by step franchise guide, which will point you in the right direction while answering a few key questions: How much does it cost to own a franchise? What are the best franchises to own? How will I know if the franchise opportunity is right for me? What are the requirements for owning a franchise?  How do I make my franchise a success? One of the main benefits of buying a franchise is that you can focus on the management aspect without wasting time on the planning and concept stages. Follow these 10 simple steps, and you’ll be ready to run your franchise in style. 1. Find the Best Franchise  First and foremost, you need to determine which franchise is right for you. Food franchises are the most common, but almost 300 industries offer franchise opportunities of some kind. Moreover, there are plenty of websites and trade events where you can find franchises for sale. Assuming you do go for a food outlet, some of the most popular options include a McDonald’s franchise, a Dunkin’ Donuts franchise, a Krispy Kreme franchise, or a Chick-fil-A franchise. Still, it’s important to conduct in-depth research to find the best franchise opportunities on the market. Be sure to consider the following: Costs: Knowing how much money you need to own a McDonald's franchise, for example, is critical when weighing your options. An existing McDonald’s franchise can cost upwards of $2 million.  Opportunities: There are plenty of franchise opportunities, but the key is to pick the one that best matches your skills and budget. Also, make sure you do your homework on the competition and learn about their proximity to your locations. Familiarity: You don’t have to work on a franchise you know and love, but it certainly helps. Passion and knowledge are important during those difficult early stages. Reputation: The company’s track record on social responsibility and its ability to provide quality products and services will affect your reputation.  There are other factors to consider, such as whether you plan to maintain a job alongside the franchise until launch or whether you’re partnering up with other owners.  2. Apply  When you’re done with your research and you’ve found the franchise that is the right fit for you, the company will want to make sure that you’re a good fit for them. Good networking skills and the ability to work collaboratively are useful qualities in these situations, which may explain why franchising is becoming increasingly popular among women entrepreneurs.    You’ll also need to go over the Franchise Disclosure Documents or FDDs. The documents outline your responsibilities, the relevant fees, and the rules and regulations you’ll need to adhere to. The franchisors are legally obligated to provide you with this 50+ page document before any contracts are signed. The FDDs typically include the following: The brand presence in your state and a three-year growth projection, The investment fees and ongoing costs  The support that will be offered to the franchisee Some franchisors may not offer business performance details and information on losses or unit closures. But you can always turn to third parties and the company’s public filings for more info. 3. Attend a Discovery Day Discovery days are an important feature that gives franchisors and franchisees an opportunity to connect and learn more about each other. It is, therefore, considered a key step towards setting the foundation for a long and successful working relationship. It’s a chance for prospective business owners to seek clarity to any questions they may have. Before this event, you should have already completed the necessary research by reading the International Franchise Association guidelines. As a franchisee, you can expect a discovery day to include: A combination of group presentations, one-on-one meetings, and interviews Visits to existing franchise locations The opportunity to meet important people who will guide you to success It should be noted that some franchisors only handle the discovery day via digital channels due to the pandemic.  4. Fund the Venture Studies show that the costs of owning a franchise are around $250,000 for more than half of all franchise opportunities. Many prospective franchise owners will struggle to find that much capital. Thankfully, there is a range of funding options available. Of course, you can make life a little easier by finding the cheapest franchises to start things off or by seeking external funding. Experts suggest liquid capital should account for around 30% of the total costs. Here are a few avenues to explore: Securing bank loans with bad credit isn’t impossible. Still, qualifying for a franchise loan when you have poor credit history will add a few steps to the process.SBA loans are a popular option among prospective franchisees. A Rollover for Business Startups or a ROBS agreement that leverages success from your 401K retirement account.  Private investments from friends and family, which could include crowdfunding; however, it should be noted that you are unlikely to gain investments from strangers for a franchise. Consider a partnership with another prospective franchise manager. While it does reduce your potential financial exposure, it does add some complexities. It also means you need to split the profits. The harsh reality is that you cannot own a franchise with no money. Once you’ve researched how much buying a franchise will cost and approached lenders with a business plan, you have a fair shot at success. 5. Invest in Yourself Studies show that almost half of all franchise owners have a bachelor’s degree. This should come as no surprise, not least because the biggest organizations want every franchise to represent the company in style. Therefore, it’s vital that you understand the qualification requirements. Your franchisor will typically run a host of training services for you and your team. This is to ensure that you continue to manage the company within the framework of the parent company to ensure consistency with other franchises across the nation. Additional forms of self-investment that you may wish to consider are: Advanced research into the history of the company, Body language and communication courses, Your personal grooming to make appearances count, Developing a positive mindset and self-confidence. You are only one cog in the machine, but you must not forget that you set the tone. When you lead by example, it will filter down throughout the business to deliver stunning results. 6. Register Your Business By now, you may have already registered the company. If not, you will need to do so quickly so that you can commence with business operations. The franchise must still be incorporated like any other business, which means providing your Employer Identification Number and other details.  One of the biggest dilemmas revolves around finding the right type of structure for your company.  An LLC keeps your business as a separate entity, which reduces your liability and eliminates other legal requirements, especially when compared to corporations. An S-corp tax election offers tax advantages but reduces your flexibility.  In most cases, an LLC is the way to go. Bear in mind that you’ll also need to open a separate bank account to keep your franchise finances separate from your personal ones. 7. Find the Ideal Location Location is one of the most important aspects when running a franchise, especially when we’re talking about food and retail brands. Finding a commercial unit that’s affordable and easily accessible to consumers is vital. Here, it’s important to think about money and your investment capabilities. Leasing is likely to be the best option for your franchise business, although a commercial real estate loan may enable you to purchase property. While the right location is the priority, you must also consider: The square footage of the internal areas and whether major structural updates or refits are required Accessibility to the front door and the parking lot Safety for all the areas as well as employees and guests Monthly rental costs and the minimum contract duration As well as finding the right location, you’ll need to design the layout of your franchise or store. The good news is that everything from the furniture to the equipment and POS terminals can be provided by the franchisor. 8. Hire the Perfect Team Always seek advice and guidance from senior franchise managers and the parent company. It’s equally important to employ the right people at your franchise store. It’s likely that your franchise will be open for long hours, especially if you want to own a fast-food franchise. Employee engagement stats show that the current rate is just 34%. As such, finding the right workers and providing the tools to help them thrive can make a huge difference to your venture. For a fast-food restaurant, you’ll need to hire: Chefs  Waiters Cleaners  Admins Supervisors Assembling the best team is one of the most important challenges you’ll face. But succeeding in this will give you peace of mind and enable you to establish a better work-life balance. 9. Prepare Your Marketing Tools One of the great things about franchising is that your franchisor will already have logos, slogans, color schemes, posters, and deals in place. Moreover, they may provide you with a template website for the local franchise. Franchising stats show that seven of the top 10 franchises are in the food industry. If you’re in the same sector, marketing items can also cover menus and images of food items. Over four in every five franchises focus on regional audiences. Every marketing plan should be geared towards conversions and revenue. Some of the key features to remember are: Local SEO, social media marketing, and content marketing Affiliate marketing and the power of recommendation Flyering and using posters in prominent areas Perhaps most importantly, you need your shop signage to stand out. Again, this is something that giants like McDonald’s and Dunkin’ Donuts will help with.  10. Open and Operate Once you’ve completed the steps above, you should be ready to launch the franchise. Your franchisor will provide the promotional tools for you to organize an opening event at the right time. Of course, seeking local press coverage can make all the difference. As long as you follow the successful launch with consistent quality in daily operations while keeping one eye on future opportunities, your franchise will have every chance of success.  Final Word  Our guide on buying a franchise and the 10 steps we’ve outlined should give you a far better understanding of whether this is the right move for your career. The potential profits are impressive, but only if you have the right skills and can find the passion for essentially running an established branch for a parent company. The fact that over 780,000 business owners are thriving through this model underlines its potential. And amid the current economic turmoil on the global stage, there has never been a better time to explore this lucrative option.