How to create a million-dollar company without owning a million- dollar facility: if a franchise concept can eliminate the need for a dedicated brick-and-mortar facility, it's a viable, cost-saving solution to consider.

Author:Alcid, Bonnie

A couple of years ago, you would never stop to consider that a business could succeed without a core product or a key workspace. Yet, here we are in 2016 and Uber, the No. 1 taxi service, owns no cars, and Facebook --the world's biggest social media company--creates no content. With the way the businesses have begun to evolve, it's not unheard of for a taxi service to outsource its cars or for a content provider to not create its own content.

Numerous factors account for the high number of home-based, mobile, or outsourced businesses. In the franchise industry, the absence of a brick-and-mortar location provides the obvious benefit of a lower initial investment for franchisees. Regardless of which vertical industry a business pertains to, there are multiple benefits of being a mobile or outsourced company. For example, British Swim School, a multi-million-dollar water safety and survival program for children that operates out of 15 locations, does not own a single building or pool.


When opening a new business concept, owners want to hit the ground running and draw customers as soon as possible. While this is the obvious goal, factors that commonly slow down the initial grand opening process are tied to delays with building permits, construction limitations and other complications financing the build. These variables can be frustrating, not to mention time-consuming. Therefore, turning to an alternative option such as opting to rent a facility is worth a shot.

The immediate benefit of not buying or building a standalone facility is the ability to get a business started right away. Without the high start-up costs and the necessity of being granted a large loan, business owners are able to focus their energy and cash more toward initial marketing, hiring and training. This process helps ensure that the concept is built on a solid operational foundation prior to offering its services to the public.

It's important for owners to note that by eliminating the burden of building and managing a facility, core standard operations can start to generate revenue within 30 days or less of signing final agreement papers. This is a huge advantage against other operators in markets that are caught up in the building process. The initial financial outlay will make it difficult for that operator to catch up to a business that works out of a rented facility and is able to open its doors and grab market share quicker.


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