There are thousands of franchise opportunities in the United States and Canada. How are you supposed to choose the best franchise under $100K?

We’ll discuss the top franchises under $100K to help you understand the services they offer, the initial investment involved, and other considerations you need to look at before you get a $100K franchise.

First, we’ll look at our picks for top franchises under $100K, then review cleaning franchises, service businesses, food franchises, and other franchises.

[su_note note_color="#dbeafc"] Read about all your options, or click any link to jump to a specific section, where you’ll learn about companies that are a good fit for your initial investment in a business franchise.

• Best Franchise Opportunities Under $100K
  • #1. Wise Coatings
  • #2. MaidThis
  • #3. Spray-Net
  • #4. Brown’s Pressure Washing
  • #5. EverLine Coatings
• Cleaning Franchises for $100K
• Best Service Business Franchises: Top Franchises Under $100K
• Top Food Franchise Under $100K
• Additional Food Franchises Under $100K
• More Best Franchises to Own (Under $100K)
• How did we choose the top franchises under $100K?
• Which franchise under $100K is most appealing to you?[/su_note]

Best Franchise Opportunities Under $100K

Upflip has partnered with specific companies that are committed to providing new business owners with the franchise tools they need to become profitable franchises. The best franchises we’ve interacted with, and our top recommendations, are:

• Wise Coatings
• MaidThis
• Spray-Net
• Brown’s Pressure Washing
• EverLine Coatings

We’ll discuss these first.

#1. Wise Coatings

Brandon Vaughn used just $15,000 to start Wise Coatings. The majority of the initial investment went to marketing and learning how to work with the unique concrete floor coating materials. There are currently eight franchises and 140 applicants (and growing). Wise Coatings helps its franchisees navigate the marketing and systems needed to run the business right. This franchise opportunity requires:

• Franchise Fee: $50,000
• Total Investment: $117,400-$160,000 (including 3 months working capital)
• Space Needed: 100-2,000 square feet
• Employees: 2-4 employees (suggested)
• Territories: Discounts for buying more than 1
• Franchising Funding Assistance: Yes, through Benetrends. Learn how to qualify.

Check out our interview with Brandon below.

#2. MaidThis

Neel Parekh started MaidThis just over 10 years ago, and now the company is making over $166,000 a month. It currently has 17 franchisees and is making a name for itself by helping small business owners start their own remote cleaning companies.

• Franchise Fee: $39,000
• Total Investment: $50,400-$72,650
• Royalty Fee: 7%
• Space Needed: 100-2,000 square feet
• Employees: Work it yourself or hire employees.
• Territories: You can buy more than one territory if they are available in your area.
• Franchising Funding Assistance: Yes, through third-party financing services.

Learn more about starting a remote cleaning business franchise below.

#3. Spray-Net

Carmelo started Spray-Net because he realized the residential painting space needed modernization to speed up the house painting process. Today, Spray-Net has 40 franchisees and owns patents on its processes so nobody else can offer them.

• Franchise Fee: $45,000
• Total Investment: $170,825-$241,825
• Royalty Fee: 8%
• Space Needed: 100-2,000 square feet
• Employees: Hire employees or subcontractors to do the cleaning.
• Territories: You can buy more than one territory if they are available in your area.
• Franchising Funding Assistance: Yes, through third-party financing services.

Learn more about starting a painting franchise in our exclusive interview.

#4. Brown’s Pressure Washing

A pressure washing franchise is among the easiest to operate. You don’t need any special skills or a big team, and the initial investment is low.

When you buy a Brown’s franchise, you’ll get extensive training and comprehensive support, making it even easier to turn your investment into long-term success.

• Franchise Fee: $20,000
• Total Investment: $50,000-$100,000
• Royalty Fee: 10%
• Space Needed: 100-2,000 square feet
• Employees: Hire employees or use subcontractors.
• Territories: Multiple territories are allowed.
• Franchising Funding Assistance: Yes, through third-party financing services.

You can learn founder Joshua Brown’s successful business strategies in The 7-Figure Pressure Washing Blueprint, or hear his story in this interview:

#5. EverLine Coatings

John Evans started the Canadian company EverLine Coatings and has received the Canadian Franchise Association Awards of Excellence two years running. The average EverLine parking lot repair franchise makes nearly $900K in its first year. To get started you’ll need:

• Franchise Fee: $49,500
• Total Investment: $164,744 - $332,443
• Royalty Fee: 9% or $500 per territory + 3%—whichever is greater
• Space Needed: 100-2,000 square feet
• Employees: Hire employees to provide the services.
• Territories: You can buy more than one territory if they are available in your area.
• Franchising Funding Assistance: Yes, through third-party financing services.

Learn more about EverLine Coatings in our interview below.

Cleaning Franchises for $100K

#6. Augusta Lawn Care Services

Mike Andes is a brilliant entrepreneur who founded Augusta Lawn Care Services when he was a teenager, and today it’s one of the top 500 franchises in the U.S. and Canada. Their franchise opportunities offer low barriers to entry and flat fees instead of the standard percentage model. Here’s what it takes to become an Augusta franchise:

• Franchise Fee: $6,999-$25,000
• Total Investment: $12,999-$82,500
• Royalty Fee: $699-$1,200/mo.
• Space Needed: 100-2,000 square feet
• Employees: Solopreneur or hire other employees to work for your franchise.
• Territories: You can buy more than one territory if they are available in your area.
• Franchising Funding Assistance: Yes, through the Franchise Forgiveness Model.

Learn more about starting a lawn care franchise below.

#7. Maid Brigade

The main benefit of franchise business models is having a well-known and established brand reputation to build from.

This is what puts Maid Brigade among the top 10 franchises in the cleaning industry. It’s regularly ranked as one of the Top 100 Franchises for less than $100,000 by Entrepreneur (#44 in 2023).

It’s also a good fit for veteran and minority franchisees, ranked among the top 50 for vets by USA Today and a top 25 franchise for Hispanics by the World Franchising Network.

• Franchise Fee: $27,700-$40,700
• Total Investment: $85,150-$113,850
• Royalty Fee: 3.5%-6.9%
• Space Needed: None (can be home-based)
• Employees: Average of 4 employees per franchise
• Territories: Franchisees get an exclusive operating territory
• Franchising Funding Assistance: Third-party financing available

#8. Scoop Soldiers

Scoop Soldiers is a unique opportunity for entrepreneurs to start an in-demand franchise in the yard clean-up sector. With Scoop Soldiers, you ensure homeowners and businesses have clean outdoor spaces by offering pet waste removal solutions.

The unique franchise business model is built to scale while being a good fit for franchisees with busy lives. You can start to operate within 60 days—much faster than many franchises.

Aspiring entrepreneurs also get the option of building from the ground up or moving into an established market. If you want a flexible, corporate-tested franchise under $100K, Scoop Soldiers is one of the top franchises to consider. 

• Franchise Fee: $39,500
• Total Investment: $68,300-$118,300
• Royalty Fee: 8%
• Space Needed: None (can be run from home)
• Employees: None needed
• Territories: Exclusive territories available in all 50 states
• Franchising Funding Assistance: Third-party financing available

You can learn more by listening to our interview with Scoop Soldiers’ founder:

Best Service Business Franchises: Top Franchises Under $100K

#9. Century 21 Real Estate

If you’re interested in the top franchises in the property management sector, Century 21 is among the best cheap franchises to invest in. Investing in a franchise lets you join a community of more than 14,000 franchisees across 86 countries. You’ll get to leverage brand recognition and Century 21’s strong track record of success as a franchise company.

• Franchise Fee: Up to $25,000
• Total Investment: $24,700-$459,250
• Royalty Fee: 6%
• Space Needed: 30 square feet per agent
• Employees: 1-3 on average
• Territories: Exclusive territories available worldwide
• Franchising Funding Assistance: In-house financing for startup costs

#10. Dog Wizard franchise

Dog Wizard is the best franchise opportunity for animal lovers. This unique opportunity provides mobile dog training services or a full kennel, meaning franchisees get multiple ways to grow their businesses.

Investing in a franchise gives you access to a four-part comprehensive training program to ensure your services meet the company’s high standards. If you’re dedicated and passionate about animals, this is among the best franchises to explore.

• Franchise Fee: $50,000
• Total Investment: $81,500-$98,250
• Royalty Fee: 8%
• Space Needed: Varies (mobile, retail, and boarding options available)
• Employees: Solopreneur or run with a team
• Territories: Protected territory with 200,000 population (and you can expand your territory easily)
• Franchising Funding Assistance: Third-party financing available

#11. Kumon

Educators seeking the best franchises under $100K may find a Kumon franchise suits their interests.

Kumon provides tutoring services, and franchisees get full access to training, too. This starts with eight days of training in the Kumon Instructor Development Program, followed by hands-on training in the Kumon Curriculum and Kumon Method.

• Franchise Fee: $2,000
• Total Investment: $68,428-$146,640
• Royalty Fee: $36-$40.50 per student per month
• Space Needed: Recommended minimum of 1,000 square feet
• Employees: 2-3
• Territories: Available across the United States, Canada, and Mexico
• Franchising Funding Assistance: Subsidies up to $37,100 and a $10,000 veteran’s incentive

#12. HomeWell Care Services

In-home care for seniors is increasingly in demand. The home care solutions and services you’ll offer with a HomeWell Care franchise set you up for big growth potential, and it’s among the top franchises for entrepreneurs with healthcare experience.

The minimum investment in a HomeWell franchise is only $5,000, so this is also one of the best franchise opportunities for people with limited financial resources.

• Franchise Fee: Up to $49,500
• Total Investment: $52,400-$230,800
• Royalty Fee: 5%-10%
• Space Needed: 500-1,000 square feet
• Employees: Can run as a solopreneur or with a small team
• Territories: Available in 47 states, exclusive territories and site selection support available
• Franchising Funding Assistance: Third-party financing available, 20% discount for veterans

#13. Signal Security

Signal is a world-class security brand with a reputation for excellence. It’s among the best franchises under $100K for veterans and law enforcement professionals and is Entrepreneur’s #1 security franchise brand.

• Franchise Fee: $50,000-$200,000
• Total Investment: $57,450-$273,150
• Royalty Fee: 4%
• Space Needed: None (can be run from home)
• Employees: Average of 2-4 per location
• Territories: Available worldwide
• Franchising Funding Assistance: In-house and third-party financing available

Top Food Franchise Under $100K

#14. Cinnabon

Cinnabon is the only food or, more specifically, bakery franchise under $100K with global brand recognition. It also has a relatively low minimum investment for a food franchise, and franchisees get complete training and marketing support.

• Franchise Fee: $5,500-$30,500
• Total Investment: $60,300-$621,400
• Royalty Fee: 6%
• Space Needed: 600 square feet on average
• Employees: 5+
• Territories: Exclusive territories available in the U.S. and around the world
• Franchising Funding Assistance: Third-party financing available

Additional Food Franchises Under $100K

#15. Carvel

This iconic ice cream franchise has been around for more than 80 years, and that staying power is part of what puts it among the top franchises in the food industry.

Franchisees get complete support in multiple facets of their businesses, from menu development to cost optimization, as well as access to a top-notch in-house marketing team.

• Franchise Fee: $10,500-$30,500
• Total Investment: $67,875-$536,400
• Royalty Fee: $2.88/gallon
• Space Needed: 100-1,600 square feet
• Employees: 2-6
• Territories: Exclusive territories available
• Franchising Funding Assistance: Third-party financing available

#16. Champs Chicken

With its low minimum investment and no franchise fee, Champs Chicken is one of the best businesses in the food industry for entrepreneurs with limited financial resources.

They also offer excellent franchisee support, with continual training and a strong investment in the growth of their owners.

• Franchise Fee: $0
• Total Investment: $9,000-$349,000
• Royalty Fee: None
• Space Needed: Varies depending on format
• Employees: Minimum of 2
• Territories: Available in 11 U.S. states
• Franchising Funding Assistance: Third-party financing available

More Best Franchises to Own (Under $100K)

Investing in any of the following franchises could be a great way to start a successful business, whether you want a brick-and-mortar store in your community, a mobile business, or a lucrative creative outlet.

#17. The UPS Store

Buying a UPS Store franchise gives you the power of a recognized brand with a track record of franchise success. The extensive ongoing support and training are what consistently make UPS one of the top franchises to own and manage.

• Franchise Fee: $9,950-$29,950
• Total Investment: $101,819-$476,993
• Royalty Fee: 5%
• Space Needed: 800-1,800 square feet
• Employees: 3-5
• Territories: Over 5,000 locations available worldwide
• Franchising Funding Assistance: In-house financing for all franchisees as well as 10% off for veterans

#18. Cornwell Quality Tools

Cornwell Quality Tools has been a leading name in high-quality, professional equipment for over 100 years, and it is the best franchise to own in the mobile tool and repair industry.

Additionally, it’s a very accessible franchise business, with relatively low up-front costs, excellent training, and strong franchisee support. It’s one of the few all-mobile franchise opportunities, which is one reason it requires such a low initial investment.

• Franchise Fee: $0
• Total Investment: $54,525-$298,825
• Royalty Fee: 7%
• Space Needed: None (mobile franchise)
• Employees: Can be run as a solopreneur
• Territories: Available in 48 states
• Franchising Funding Assistance: In-house financing for equipment and startup costs

#19. Minuteman Press

Minuteman Press is the #1 printing and marketing franchise business. It’s among the best franchise opportunities in any industry, offering franchisees multiple revenue streams and local support.

As a full-service marketing provider, you can establish strong recurring revenue streams quickly with a Minuteman Press franchise. There’s a reason it’s one of the companies highlighted by Entrepreneur’s franchise list, appearing among their top franchises for 20 years in a row.

• Franchise Fee: $32,500-$48,500
• Total Investment: $78,241-$219,529
• Royalty Fee: Up to 6%
• Space Needed: 1,000 square feet
• Employees: 3
• Territories: Available in all 50 states
• Franchising Funding Assistance: Third-party financing available

#20. Big Frog

For aspiring entrepreneurs who want to get into the custom clothing sector, Big Frog is one of the best franchises to open.

• Franchise Fee: $39,500-$60,000
• Total Investment: $180,750-$235,700
• Royalty Fee: 6%
• Space Needed: Under 1,200 square feet
• Employees: 2-4 required per location
• Territories: Available markets in 47 U.S. states and Canada
• Franchising Funding Assistance: Veteran discount and third-party financing

You can make great money with this established brand. Since becoming a Big Frog franchisee in 2008, Sanford Booth has consistently made more than $40,000 a month. Hear his story in this interview:

#21. YESCO Sign & Lighting Service

First founded in 1920, YESCO is a family-run company that builds custom signs in addition to providing sign and lighting repair and maintenance services.

You can start a franchise for $100K or less without needing a brick-and-mortar space for the repair side of the business.

• Franchise Fee: $50,000
• Total Investment: $65,000-$389,200
• Royalty Fee: 6%
• Space Needed: None (can be run from home)
• Employees: 3
• Territories: Available in 39 states and Canada, exclusive territories available
• Franchising Funding Assistance: 10% veteran discount and in-house financing available for equipment and franchise fee

#22. Duct Doctor

With over 30 years as a leader in the duct cleaning services market, investing in a Duct Doctor franchise gives you access to their well-known brand and strong marketing and advertising program.

The company also provides extensive training and ongoing support, so you don’t need any special educational background or skills to get started as a franchisee. Another benefit is the growth potential, with ample opportunities to expand beyond your initial market.

• Franchise Fee: $25,000
• Total Investment: $44,100-$201,500
• Royalty Fee: 5%-8%
• Space Needed: None (can be home-based)
• Employees: 2
• Territories: Worldwide exclusive territories available and option to operate multiple units
• Franchising Funding Assistance: Third-party financing available

How did we choose the top franchises under $100K?

We use a variety of factors to select the companies we recommend to a potential franchisee. Some of the factors include:

• Initial investment
• Franchisee support
• Profit margins
• Limited competition
• Search engine optimization

Initial Investment

Potential business owners are looking for “Franchise $100K” opportunities, and for this list, we took that specific number into consideration. We use the franchise fee or the total initial investment to judge the franchise up-front costs.

In scenarios where the initial costs are more than that amount, there are other factors that we use when comparing the companies, for example…

Franchisee Support

While costs are important to a franchise business, the main benefit of a franchise is the ability to book clients faster. You don’t have to spend countless hours researching the best strategies to operate your business if the franchise has good business systems.

When it comes to our top five picks, we have personally interacted with the business owners and established that the costs, profit margins, and approaches to finding clients are worth the investment.

Profit Margins

We look for business owners who have created highly automated business structures because the more automation a business uses, the fewer costs (as a percentage of revenue) they have to find and support clients.

Higher profit margins lead to faster business growth and increased personal wealth, which you can then invest in other businesses like rental properties.

Limited Competition

A business that takes a novel approach tends to have less competition, higher revenue, and an easier time finding clients. Combining highly automated business processes with high-demand local businesses reduces the time to recoup costs.

Search Engine Optimization

Every business today needs to take search engine optimization into account. We have to include certain businesses in some blogs (including this one!) because readers (like you!) expect to see them.

Dog Wizard is the only franchise in this blog that our primary SEO tool, SurferSEO, expected us to include. All others were chosen because of our research or personal experience with how the business owner operates their franchising company.

Which franchise under $100K is most appealing to you?

Everyone considers franchise opportunities differently. Some people care most about the initial investment, while others are most concerned with ongoing support. That’s why it is important to do your own research before making the minimum investment in any of the best franchises under $100K.

Which franchise under $100K is most appealing to you? Let us know in the comments.

Did you know Americans spend nearly $1.1 trillion traveling every year, but there are fewer than 50,000 travel agents? That’s an average of $2.2 million in vacations booked per travel agent.

Given that employment in the travel agent industry is going down while the number of vacations booked is going up, there may be short-term opportunities in the field.

Great travel agency names will help agents find potential customers who want to go to their dream destinations. We provide lots of travel agency name ideas and then explain how to register your travel business name.

[su_note note_color="#dbeafc"] Click on any of the links below to jump to the section.

• How To Pick A Travel Agency Name
• 32 Travel Agency Name Ideas
• 38 Creative Travel Agency Names
• 30 Unique Travel Agency Names
• 42 Catchy Travel Agency Names
• 20 Luxury Travel Agency Names
• 28 Cool Travel Agency Names
• 50 Travel Company Names
• 20 Good Travel Agency Names
• 30 Travel Agent Business Name Ideas
• 28 Trip Names
• 20 Travel Website Names
• Screen Travel: Summer Vacations
• How To Name Your Travel Agency
• Next Steps After Naming Your Travel Agent Business [/su_note]

How To Pick A Travel Agency Name

Choosing the right name for your travel agency is an important step in starting your business. Your travel agency name should be memorable, easy to pronounce, and relevant to the services you offer.

Here’s some advice for choosing a travel agency name:

• Consider your target audience. Who are you trying to attract? Once you know your target audience, you can start to brainstorm names that will appeal to them.
• Focus on your unique selling points, or USP. What makes your agency different from the competition? What are your strengths? Once you know your USP, you can start developing names highlighting these qualities.
• Keep it simple. Your agency's name should be easy to remember and pronounce. Avoid using long or complicated names.
• Make it relevant. Your agency's name should be relevant to the services you offer. If you specialize in a particular type of travel, such as luxury travel or adventure travel, your name should reflect that.
• Be creative. Your agency's name is a chance to show off your creativity. Don't be afraid to think outside the box and come up with a unique name.

32 Travel Agency Name Ideas

The first thing you should think about is your target audience. Are you targeting luxury travelers? History buffs? Adventurers? These could factor into your agency name.

Pro Tip: Creative travel agency names not only draw potential customers, but they can also help you find the right travel agent to join your team.

38 Creative Travel Agency Names

Names for a travel agency could include descriptive words, like “escapes,” “luxury,” “voyages,” “adventure,” “vacation,” and “getaway”—little descriptive words matter.

Pro Tip: The keywords related to your travel business should be represented in your name and or slogan. It’s very important to be clear on what services you offer to differentiate your travel agency from a similar travel company in your area.

30 Unique Travel Agency Names

In all likelihood, people are searching for travel agent services online. Stand out in the wall of text with a unique name.

Pro Tip: If your name is more plain, let your logo do the talking. Make sure you can envision your logo when you make your travel agency names list. If you see a name but can’t imagine what you would do for a catchy logo, it’s probably not a good fit.

42 Catchy Travel Agency Names

Sometimes, if your name rolls off the tongue, it’s impossible to forget. Try a name like:

20 Luxury Travel Agency Names

As a travel agent, you’ll likely serve wealthy clientele—and some travel agents gear their entire business around that. If you specialize in luxury trips, consider:

28 Cool Travel Agency Names

Sometimes, naming a company can be simple. The strategy? Go for something cool. We thought these travel agency name ideas were cool.

50 Travel Company Names

Perhaps you offer more than travel agent services. Maybe you run proprietary tours and excursions, too. These names could be perfect for your travel company:

20 Good Travel Agency Names

Haven’t found a good travel agency name yet? Here are a few more:

30 Travel Agent Business Name Ideas

Don’t settle. Only go with travel agency name ideas that will jump off the page. Consider some of these:

28 Trip Names

As a travel agent, you might offer pre-planned trip packages. The names will depend on the details, of course, but take these for inspiration.

20 Travel Website Names

You’ll need a website, and obviously, it should mirror your business name. Consider one of these as a website name:

Screen Travel: Summer Vacations

These days, real travel is always preceded by screen travel.

When selecting your travel agency names, imagine a couple or family sitting down in front of a computer screen and fantasizing about their summer vacations.

What will they search for and be drawn to in a local travel company? Your agency names should include the specialties your travel company wants to be known for, and these 50 ideas can help.

How To Name Your Travel Agency

Once you’ve considered some creative travel agency names, you’ll need to register the name of your travel company. During the process you’ll want to:

1. Check domain availability: Travel agencies need a website, and it should match their travel business name.
2. Perform a web search: You want to check to see if the name is already in use by another travel agent. If it is, consider other catchy travel agency names.
3. Check for trademarks: A travel business name could already be trademarked. Check on USPTO.gov to make sure it’s available.
4. Register the travel agency name: As long as the business name is available, you can register the business and start selling business travel or family vacations.

Next Steps After Naming Your Travel Agent Business

You still have plenty of work to do to start a travel agent business. You’ll need to create your website, open your socials, negotiate deals with tour operators, market your business, and book clients. 

Check out our Business Hub to learn more about starting a business.

Are you interested in starting a home business? Today, working remotely has become increasingly popular, which provides an abundance of opportunities for aspiring entrepreneurs.

Starting a successful home-based business can be overwhelming for many people just beginning their journeys. Our guide will help simplify the process with the essential steps and advice from small business owners who have already launched their business ventures from their residences.

We focus on helping you by discussing the following topics. Just click on a link to jump right to the home business information that interests you.

[su_note note_color="#dbeafc"]

• What is a home-based business?
  • What are some advantages of a home-based business?
  • What are some disadvantages of a home business?
• Factors to consider when starting a business at home
• How to start a home business
  
  • Decide on a home business idea
  • Write a home-based business plan
  • Name your home-based business
  • Get an LLC for your at-home business
  • Get business licenses for your home business
  • Get a home business bank account
  • Set up your home office
  • Market your home-based business
  • Serve your customers
• Home business FAQs
  • What business can I start in my home?
  • How do I start a small home-based business?
  • Can a tenant run a business from a rental property?
  • What are the three general rules for qualifying your home office as a business expense?
  • What percentage of utilities can I deduct for home business?
  • What insurance do I need to run a business from home?
• Home business FAQs
• Balancing work and life at home
• Expanding and scaling your home business
• Ready to start your own business?[/su_note]

Get ready to start a small business at home.

Short summary

• Start a successful home-based business by carefully considering the type of business, creating a comprehensive plan, obtaining necessary permits and licenses, setting up an ergonomic workspace, marketing your venture effectively, and delivering quality products or services.
• Identify and focus on specialized market segments to help ensure success in any home-based venture. We show you how.
• Learn from inspiring success stories of individuals who have turned their ideas into thriving home businesses with hard work and the right strategies.

What is a home-based business?

Home-based businesses can be any size as long as the primary office is in the small business owner's home. Small business owners have lots of options to choose from, including:

• Local service businesses
• Online and dropshipping businesses
• Consulting
• Freelance business ventures

Cristobal Mondragon started Queen Bee Cleaning Services as a home-based cleaning business. Now it makes over $1.5 million annually.

Check out Chris Mondragon's FREE training to kickstart your own cleaning business. You can learn more about his inspiring journey by watching the interview below.

Read on for all the info you need to decide on a profitable home business idea that will work for you based on your skills and interests in combination with the resources available to you.

What are some advantages of a home-based business?

A home enterprise has several advantages over other small business ideas. Some of the best benefits of a home business include:

1. Flexible schedule
2. Lower startup costs
3. Lower overhead costs
4. Increased productivity
5. More opportunities
6. Higher pay
7. Less risk than renting a space
8. More room for personal growth
9. Tax deductions
10. Great creative outlet
11. Reduced personal expenses

What are some disadvantages of a home business?

When starting a small business from home, many business owners struggle with aspects like:

1. Self-discipline required
2. Paying attention to daily tasks
3. Lack of privacy
4. Separating work and home life
5. Lack of space
6. Not taken as seriously
7. Lack of coworkers to collaborate with and learn from
8. Feelings of isolation
9. Procrastinating or overworking

Many small business owners will attend networking groups that help them overcome these common challenges. Start practicing good habits early to give your home-based business idea the best chance of success.

Factors to consider when starting a business at home

Starting a home business can be a huge advantage or disadvantage to a business venture. Ask yourself the following questions before starting your own business from home:

• What type of business suits your skills, interests, and resources?
• Do you have the space for your new business?
• Does your neighborhood have rules against certain small businesses?
• Will your family be supportive if you start a small business at home?

How to start a home business

Successful home business ideas will normally follow a nine-step process for the best odds of success.

1. Decide on a home business idea
2. Write a home-based business plan
3. Name your home-based business
4. Get an LLC for your at-home business
5. Get business licenses for your home business
6. Get a home business bank account
7. Set up your home office
8. Market your home-based business
9. Serve your customers

Keep reading to find some of the best home business ideas.

Decide on a home business idea

The first step in starting a home-based company is choosing a business idea. The best small business ideas from home normally fall into the following categories:

• Online Business Ideas
• Service Business Ideas
• Professional Services

We’ll provide you with some home business ideas for each of the three categories next.

Online business ideas

Many successful business owners choose to start an online small business. These make a great new business from home because they don’t require a lot of space and can be started with just the internet and a computer. Consider options like a:

Dropshipping business

This business idea requires creating an online store, finding dropshipping suppliers, and marketing their products. Learn more about dropshipping.

Affiliate marketing business

Small business owners can make a great living through affiliate marketing. You’ll need a marketing and sales plan because you’ll be paid on commission for selling other companies' products.

Social media business

A social media manager uses digital marketing skills to help other businesses with marketing on social media. Make sure you don’t forget to build your own social media presence, too. Check out our interview with a successful social media manager.

Online store

Whether you have a subscription box business or a dropshipping business, you’ll need an online store. You could even buy an existing eCommerce business.

Check out more online business ideas.

Service business ideas

Check out some of the most popular service businesses that many small business owners run from home.

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Car detailing business

Start a small business at home in the car detailing industry. You’ll be washing cars all day. This profitable business can make a ton of money.

Find out how Alan Tursunbaev turned an idea for a summer into a small business that brings in $50K per month.

[su_youtube url="https://www.youtube.com/watch?v=3jIWyxNjtpU"]

House cleaning service

You can make a great living when you start a small business that’s a house cleaning service. Just ask Chris Mondragon, who started Queen Bee Cleaning, which makes nearly $2 million per year.

[su_youtube url="https://www.youtube.com/watch?v=d4Iip7BHXwg"]

Dog grooming business

There are lots of businesses involving animals. You could start a pet-sitting business, a dog-walking business, or even a mobile grooming business.

Professional services

You can start a professional services small business at home. Consider one of the businesses below.

Renting commercial real estate

Real estate agents can make a great living and work from their own homes. Check out how Thach Nguyen has built a $100M real estate empire.

[su_youtube url="https://www.youtube.com/watch?v=TWCzwn3R78A"]

Consulting business

Whether someone needs a freelance writer, help with social media, inventory management, or financial projections, consulting is a great business.

Learn more about consulting businesses.

Perform market research

Once you have identified the best home business idea, it’s time to research how to make your small business idea work in more detail. This could involve conducting:

• Target market research
• Competitive analysis
• Research on barriers to entry
• Opportunities research

Once you’ve selected a small business idea, you should write a business plan.

Write a home-based business plan

Did you know a well-written business plan can help a company grow 30% faster than one with no business plan?

A detailed business plan is essential to any home-based venture's success. It functions as a roadmap. Plus, the business plan details your goals, strategies, and financial outlook.

Check out our blog about business plans to download a business plan template and learn how to write your business plan.

Name your home-based business

Next, you’ll want to name your home-based business. Your business name is the foundation of your brand identity and will inspire your logo, marketing, and customer service.

Your unique business name should be easy enough to remember yet reflective of the values held by you and the company. Try our business name generator. You can find a small business name you love and check the availability on Name Cheap.

Get an LLC for your at-home business

Setting up a limited liability company (LLC) for your home-based business is an essential step in safeguarding yourself and preserving your individual assets.

An LLC provides its owners with restricted liabilities, meaning you won't be personally liable for any debts or duties of your organization. They're easy to create and manage and offer tax benefits for successful businesses.

Establishing an LLC for your at-home business requires registering with the Secretary of State.

By forming this type of legal entity, you protect both your small business and your personal assets. You might also consider a different legal structure like a sole proprietorship or a corporation.

Get business licenses for your home business

When starting a home-based business, it's vital to acquire the essential licenses and permits. Depending on where you're located and what kind of business you're running, there will be various requirements for

• licenses such as general enterprise approvals
• sales tax documentation
• professional credentials
• any local requirements

Check local and state laws for any rules that might apply to your business. You may receive harsh penalties if you do not follow them. Make sure to keep track of your records and renewal periods, too.

All this needs to be done so that your company remains legit during its operations. Complying with legal requirements helps you avoid issues. Just ask Cristobal Mondragon:

https://www.youtube.com/shorts/keieMgRWF9A?feature=share

Get a home business bank account

For any home-based business, it is essential to open a bank account to separate business finances and personal ones. This simplifies tracking profits and expenses for bookkeeping purposes like tax filing.

To establish such an account, you’ll need your legal paperwork like your LLC registration, Tax ID, business licenses, and EIN (Employer Identification Number).

A dedicated credit card may be beneficial so that you can cover costs while your business builds credit history. All these play into managing your business finances. The better you manage the finances, the easier it will be to identify opportunities for improvement.

Set up your home office

A dedicated home office is essential for managing your work and keeping up efficiency. Designate an area that provides privacy and limits disturbances so you can focus on running the business from your house. Comfort should be of utmost importance. Get an ergonomic chair and make sure the lighting facilitates whatever type of work you’ll be doing.

You’ll also want reliable, high-speed internet and software that will help you manage your business. The software you need will vary depending on the type of company you’re starting. Check out our HR blog for human resource provider reviews. Other software we suggest is:

• Google Workspace: Get a free 14-day Google Workspace trial.
• Quickbooks: Get 50% off Quickbooks and manage all your business expenses.
• Customer Relationship Management Software: There are a ton of options. Research the ones best for your industry. Two of the best are Monday.com and Asana.

Market your home-based business

You need an effective marketing strategy to launch and grow a home-based business. It's essential to have insight into your target audience and research the competitive landscape. Reach potential customers on social media platforms, websites, or by partnering with related service providers.

Track and measure your promotional efforts using key performance indicators (KPIs) like web traffic or customer inquiries to decide where to allocate advertising dollars. Google Analytics is the tool most small businesses use to monitor their success at getting people to their websites.

Most importantly, marketing is a long-term game plan that requires consistency and dedication. Be patient and you'll stand out from other home-based business owners.

Serve your customers

Successful home-based businesses rely on providing their customers with stellar service. Depending on the type of business you start, this could be anything from offering personalized attention to delivering high-quality products. Practice operating on the old adage “Under-promise and over-deliver.”

Every happy customer will help build strong relationships that lead to loyalty and often positive word-of-mouth referrals. These can help you grow your at-home venture even faster.

Home business FAQs

What business can I start in my home?

Most businesses can be started from home as long as there are no homeowner association rules or local government prohibitions. You probably won’t be able to start home-based manufacturing or energy companies, for example.

How do I start a small home-based business?

Beginning a small, home-based business can be achieved by following the essential steps we’ve outlined. First, consider potential ideas and determine if they are suitable for working from your residence.

Consider profitability by creating an organized blueprint of how to move forward. Pick out the right company configuration, give it an apt name, register it with your state authority, and attain an applicable tax ID number and licenses to pave the way for a successful at-home venture.

Can a tenant run a business from a rental property?

You may be able to start a home business if you rent. You’ll need to:

1. Check your CC&Rs or lease.
2. Talk with your apartment complex manager, HOA, or landlord.
3. Research zoning laws.
4. Check for other laws prohibiting home businesses.
5. Get a landlord permission letter for home business activity.

You may need a signed letter of authorization (see our sample) giving permission to use the property for business purposes.

What are the three general rules for qualifying your home office as a business expense?

According to the Internal Revenue Service, you have to meet three main criteria to claim a home office as a business expense:

1. Exclusive and regular use: Your home office must be used exclusively for business purposes on a regular basis. It should not be used for personal activities.
2. Principal place of business: Your home office should be the primary location where you conduct substantial administrative or management activities for your business.
3. Meeting clients or customers: You must use your home office to meet your clients, customers, or patients, or the office space must be a separate area used exclusively for business purposes.

As long as your home office is exclusively used for work and is where you consistently do admin work, you will normally qualify to deduct 100% of direct business costs and a percentage of indirect but relevant household costs.

What percentage of utilities can I deduct for home business?

According to the Internal Revenue Service, you can deduct utilities using two methods:

1. Simplified Method: Up to 300 square feet at $5 per square foot for a total of $1,500.
2. Actual Expenses: This method allows you to use the same percentage of the home you actually use for business. Keep reading to find out how to calculate it.

Using actual expenses, you can either use the percentage based on square feet that are used exclusively for your business, or, if the rooms in your home are approximately equal in size, you can use the percentage of rooms used.

For instance, my office is approximately 15x15 feet or 225 feet out of 1,600 square feet in my home, which equals 14%. I can’t use the rooms method because they are not approximately equal. That calculation would suggest my office space is 33% of the home, which is not a fair representation.

My utilities are around $12,000 per year, which means I can claim 14% of that or $1,687.50 of my utilities. Given my mortgage is $1,700 monthly, 14% of my annual mortgage is $2,856, making my total home office claim $4,543.50—a far better deduction than the Simplified Method’s $1,500.

What insurance do I need to run a business from home?

A home business will normally want a business owner policy (BOP) that bundles together three important coverage types:

1. General liability insurance
2. Commercial property insurance
3. Business interruption insurance

It's typically cheaper to buy a BOP compared to buying each policy separately and you can add additional coverage types as needed. Simply Business is a great place to get your business insurance because it compares rates from 16 major insurers.

Balancing work and life at home

While running a home-based business provides advantages, work-life balance may be compromised. You’ll want to create good rules for yourself to balance your personal time and work time. Here are some rules people suggest (and I wish I followed):

1. Create a schedule for yourself with regular breaks and start-stop times. This helps keep your work from infringing upon personal time. My wife wishes I’d listen to this one.
2. Maintain a separate space for your work so you can avoid being in it during personal time. This one is the easiest to follow.
3. Schedule personal activities including exercise, hobbies, and dates. I try to do this one, but only exercise works flawlessly. My dog and I go for a mile walk every morning.
4. Send your kids to boarding school if they start plying in your home office (jk).

Expanding and scaling your successful business

Once you start a small business at home, you’ll operate the business. As you build success, your business entity will likely need to hire more people, automate systems, or diversify income streams. Careful planning and research are essential for a successful business idea to grow. Some of the best ways to scale a business include:

• Introduce new services and products.
• Add another market segment.
• Explore partnerships.
• Upgrade technology.
• Add staff members. (This might mean you need to change the legal structure or move the business out of your own home.)
• Add new locations.
• Create a franchise.
• Increase the budget for your marketing and sales plans.

Ready to start your own business?

Now you know how to choose a business idea, create a business entity and legal structure, and some of the unique features of a home business. It’s up to you to take the time to create a solid business plan, build your business model, and market your business.

What business will you start from home?