1. Is it popular?  Pegging consumer tastes can be tricky, but there are a couple of ways to go about it.  One is to ask around.  Test the waters to see what people think of various franchises.  You may also want to look at how many locations they currently have.  Take McDonald’s, for example.  They operate in over 100 countries across the globe (with more than 30,000 restaurants).  That’s a popular corporation.  On the other hand, look at a franchise like Starbucks, which had to close 600 stores just a couple of years ago, despite their seeming popularity.  This is a good place to start, but there are other considerations to be made.
2. Do you like it?  If you have no affinity for the company you’re joining then you’ve already got one foot down the road to failure.  You need to find a company that you not only like, but that you believe in if you want to turn your franchise into a success.
3. Is there a future in it?  Despite the recession, there are businesses that continue to grow.  Technology and green industries, in particular, seem to be on the rise.  Of course, most of these don’t offer franchises.  Another option is food services, some of which receive continuing public support regardless of the state of the economy.  But no matter what industry you’re interested in, you need to think about where it’s going and how sustainable it is.
4. How long has the company been franchised?  This may not necessarily affect your decision to buy into a franchise, but it’s something to consider simply because a company that has been franchising for a while has likely worked out most of the kinks in the process.  On the other hand, a newly franchised company may afford you more latitude in decisions regarding your location.  You need to decide what is more important to you.
5. What is the cost?  This is a biggie.  Businesses that are popular are going to cost a lot more than those that are just beginning to branch out into franchising.  Those that have a long history of franchise may be more stable and offer a proven track record for earning, but they’re definitely going to cost you up front.
6. What are the caveats?  Every small business franchise agreement is going to come with some addendums the buyer won’t like.  You may have to pay annual or monthly fees, turn over a portion of earnings, or meet certain standards of operation in order to hold the franchise.  If the restrictions or expenditures are too steep, you’ll need to seek another franchise to buy.

Even if you’re doing the smart thing and forming an LLC (or similar), you’re still going to have to use your personal credit to secure the funding needed to start your own business.  This means that you’re probably not going to qualify for quite as much money as you hope for to get things up and running (even if you’re eligible for a significant amount).  Plus, it’s going to be a while before you really start earning enough money to pay the bills.  What this amounts to is a rather lean time for your business, which can be a real hardship when you’re learning the ropes, making mistakes, developing an understanding of the market, and trying to make your vision into a reality.  For these reasons, keeping your overhead low is absolutely essential.  But how do you accomplish this task?

Cutting costs is no easy feat, especially when you’re just starting.  Down the road, you can haggle for the price of goods (especially if you’re buying in bulk), streamline your processes, minimize redundancies, get deals on shipping, and perform a whole host of other money-saving devices that will keep you in the black.  But right now you’re just trying to figure everything out.  Add in the fact that you have certain ideas about how your business should be (and you’re determined to get it right) and you are probably already over-spending.

But if you’re willing to make a few concessions, it’s not as hard as you think to toe the bottom line.  For starters, you may want to consider a business model that supports telecommuting, at least initially.  If you’re plan is for a storefront, think about starting your business online instead and then expanding later.  Or if it’s an office setting, just have employees communicate through IM or video conference.  Even if you have to equip employees with smartphones, it’s probably going to save you a lot over a lease and the additional costs of running a brick-and-mortar location (utilities, security, etc.).  Although not all businesses can run this way, it’s a viable solution for anyone who plans to have an online presence anyway (and it can cut costs significantly).

Your staff is going to be another big expense, but you really do need head count if you’re going to get the work done.  So think about hiring contractors.  You’d be surprised by the number of people you can find who are willing to work on a contract basis.  This is best if you’re doing business solely online, but it can also be viable for physical locations (although you will have to hire them on as employees if you plan to keep them more than a year).  You may have to pay a little extra for freelance workers (unless they’re new to it), but you won’t have to pay the employer portion of taxes or social security and you can also avoid the outrageous cost of health benefits.  This is going to translate into a huge savings where your overhead is concerned.  If you have a storefront, you can also hire only part-time help and just avoid benefits.

There are about a million other ways to save smaller amounts of money as time goes by, and you will likely discover most through experience.  But if you really want to start off on the right foot and get your enterprise going for less money than you planned for, a few simple adjustments could make a world of difference where your overhead is concerned.

Emma Martin writes for Plexpack which offers continuous band sealer, shrink packaging machinery and many other items for your e-commerce and other packaging needs.

You can start with a simple hobby or an idea that plays to your strongest skills.  It’s always going to be unique to you, but here are a few fun business ideas to start with.

• Host parties!  Get into independent consulting with companies like Partylite, Beachbody, Mary Kay, Avon, Pampered Chef, etc.  These are businesses that already have a plan set up for you, but you can tailor details to fit your personality and your life.  They also only require a minimial investment to get started.  You can run them entirely out of your own home, on your own schedule, and get paid to host other people’s parties.  If you’re excited about the company you choose, it will never feel like work.
• If you love kids, start a daycare.  Especially if you can offer cheaper prices than the bigger local businesses, you’ll have parents practically begging you to take their kids while they go to work or have a much needed night out alone.  If you’re of the mindset that you’re getting paid to play with kids, this can be a lot of fun!
• Perhaps you’re into physical labor, or you’d just love to work outside during the warmer weather.  Get into landscaping or home repair.  Many people simply don’t have the time, talent, or energy to do the work themselves.  Enter you to save the day and make money.  Just as with the daycare, if you can offer a competitive rate and quality work, you’ll have so many jobs lined up that you’ll have to turn some people away.
• Do you like to write?  Do you always have a lot of ideas floating in your head or an opinion on almost every topic?  Start a blog.  It will take some time to build a following and be able to make any significant income, but if you can market yourself well and stay interesting, you can have a high chance of success doing something that you love.
• Sell on ebay.  You can sell your old “junk,” scour rummages and sell other people’s junk, or sell unique items that you’ve created yourself.
• If you’re handy and creative with a camera, you can start your own photography or videography business.  Get the word out that you’re available for weddings, bands, corporate and special events, family functions, etc.  You can do this part-time or work to turn it into a full-time gig, too.

Coming up with your idea might be one of the most difficult parts of starting a business.  You have to make sure it can be profitable and that you’ll be excited about it everyday.  What are your strengths?  If you’re much better with numbers or money itself and therefore not into a so-called “creative” idea, become a financial consultant or a wealth coach or even a personal accountant.  If you find your passion, run with it.  Your chances of success skyrocket when you start a business that you believe is fun!

Elderly services and e-commerce appear to top the list.  Society is always talking about the baby boomers and how they’re starting to edge into their senior years, meaning the demand for services in that industry is high.  This doesn’t mean you need to invest in a new nursing home; really, it’s about offering services that people may have more trouble doing for themselves as they get older, such as landscaping, home improvement projects, in-home medical support, etc.

If e-commerce appeals to you, keep in mind that it’s not just teenagers and twenty-something that are interested in social networking.  The older crowd is also looking for contact with people their own age.  Many are creating their own Facebook accounts, and they welcome other sites that cater to their age group where they can discuss advice about mortgages and raising children and even look for a date.

Parents are also demanding better school food choices, so if you can get into food services and provide some healthy options, you could have a successful business on your hands.  Business opportunities like this one and elderly services can be easy, but don’t confuse that with low start-up costs.  With any option you choose, you need to create a business plan and weigh the potential returns against your initial required investment.  Sometimes you might need a large amount of money to start, but the profits can start rather quickly.

If you’re looking for east-to-start small business with low initial investments, consider things you can do out of your home, such as opening a bed and breakfast, being  a dog-walker, using your truck for a hauling service,  becoming a wedding planner, or even a professional organizer.  Yes, I said professional organizer—there’s even a National Association of Professional Organizers.  There are plenty of people who just can’t do it for themselves, so why not do it for them for a profit?

Finally, be sure to choose a path that you can be passionate about.  If you get into elderly services but you’re not excited to be helping them, that’s not the right business for you.  Even when looking for a passive business to run, you’re still the one ultimately responsible for its success or failure.

As with most things in life, the answer depends on a number of different variables.  Your first task is to choose a franchise that sells a product or service that you are or could be passionate about.  This will make it easier to stick out the start-up phase while you wait for your investment to turn into profit.  Do some research to find which franchises have been the most profitable recently and see if the one you’re thinking of ranks high enough for you to want to move forward.

Are you able to set up your franchise in a profitable area?  In other words, will you be located in a place where customers are likely to patronize your services?  If not, you may have to work a little harder to bring in the business, despite the proven advertising set up at corporate.

Most research dictates that you should expect to see a 10-15% return on your investment over time, and that’s if you’re a passive franchise owner.  The theory is that the more active you are in your business, the higher your potential income can be.  One thing to be cautious about is the idea that a high-investment franchise should bring the highest return.  That’s not always true.  This also depends on your location, your overhead, your personal involvement, etc.

You can likely bring in a comfortable income with a franchise, but the real money can start rolling in if you open multiple locations.  Many people find that that’s the best way to reach their desired income potential.  Of course, you want to make sure your first franchise succeeds to the point where you can realistically take a stab at another.

Most importantly, don’t treat franchises like a free ride.  If they were immediately profitable, I’d bet that the only existing businesses would be franchises.  Despite the fact that the initial planning has been done for you, you still need your own personal plan on how to make the existing principles work for you.  As always, do your homework, and remember that the more time and effort you put in, the better your return can be.