The Most Profitable Small Businesses for Under $20k in Australia
From the home services and maintenance business to finally starting that dream coffee shop of yours, here are the best franchises to put your money on. May 31, 2019Investing in a franchise has numerous advantages. You’re still a business owner but instead of going the solo way, you have someone with experience in the field behind your back.
The main difference between running your own venture and a franchise is exactly the support you’re receiving from the parent company.
With franchises for sale for under $20,000, investing in such business is a shrewd decision.
But with more than 1000 franchise brands to choose from in Australia, how do you find the best deal? More importantly, how do you know it’s a worthwhile investment.
One sure way to know you’re placing your money in the right place is looking at the branding. But big-name franchisors, like McDonald’s for example, have a massive upfront investment. Sometimes north of a million. So, this doesn’t really fit the budget of a $20k business for sale.
Fret not, as we have listed some of the best franchises under $20k (and yes, we’re shamelessly promoting our franchises as well) and we also share a couple of franchisors, that we feel have potential in their respective niches. And let’s not forget a couple of tips on finding the best low-cost franchises for sale.
Table of Contents
- Franchise Businesses for Under $20k
- Business Opportunities in Australia, UK and USA
- How to Find a Bargain Franchise
Franchise Businesses for Under $20k
What makes a bargain franchise better than the rest? The niche. Operating a business in a growing market is what makes it profitable, marketable, and most importantly it’s what drives your clients.
Australia is a vast and growing market that is ever changing, and with so many franchisors out there, finding a small business for sale under $20k can be tricky (mainly because of how saturated the market is with franchising options).
Home Repair and Maintenance Services
Investing in a home maintenance franchise can be a very lucrative business opportunity. And you also have a wide array of businesses to choose from. Be it a handyman business, cleaning one, pest control or even a gardening and landscaping ventures for the green thumbs out there.
Let’s take a look at each niche individually:
Handyman Franchise
Niche overlook:
- Growing market
- Easy and cheap to start
- A vast array of services to provide
Australia’s home renovations market is now a $31 billion dollar industry. Local handyman industry is a billion dollar one and it grows at a steady 2.2% each year. More and more Aussies have less time to take care of things around their homes, and because of this, the niche has blossomed in the past 10 years or so.
This makes a handyman franchise a worthwhile investment with potential for future growth and development. With a starting investment of just north of $9,000, our handyman business for sale falls below the $20k and even below the $10k mark.
If you’re still not sure if you want to start a franchise handyman business, we’ve covered the topic of starting on your own in this post.
Some of the most sought after services are carpentry, plumbing and electrical work but you can find that often handymen are doing simple, around-the-home jobs, which makes a handyman franchise suitable for people with small amount of experience as well.
Cleaning Franchise
Niche overlook:
- Requires little to no experience
- Fairly low starting price
- Growing industry
While a bit more modest as an industry, the cleaning market in Australia brings in about 4 billion dollars per year. Again, it’s a growing industry for the same reason – Aussies are getting busier and busier, so they just hire someone to the job for them.
You can start a cleaning business for the low cost of just $3,000, but depending on the type of services that you want to provide and the equipment that you’re going to need the prices will increase.
You can check out our cleaning franchise opportunities here, or see a more in-depth guide on how much it will cost you to start a cleaning business on your own here.
Pest Control Franchise
Niche overlook:
- Steady yearly growth at a rate of 3%
- More than a billion dollars generated in revenue
- Nearly 3,000 businesses operating in Australia
According to IBIS, the pest control industry brings in around a billion dollars in revenue each year. After all, creepy crawlies is what Australia is best known for. It also has a healthy, steady growth of nearly 3% per year, which is awesome news for every business owner who’s looking to run and grow a successful business.
To get a clearer perspective of the costs and the operational process of the pest control business check our thorough guide. In there we discuss everything from the incorporation of the business itself to any courses and certificates you’re going to need in order to operate as a pest controller.
Gardening Franchise
Niche overlook:
- $3 billion dollar industry
- Annual growth of nearly 2% for the last five years
- Rising demand among older demographics
Everyone can enjoy a bit of quality time in their garden and that’s why the gardening and landscaping businesses are booming. With three billion in yearly revenue, Aussies are investing in the front and backyards, both as a way to create their dream space and to increase their property’s’ value. And gardening businesses are reaping all the benefits!
Our gardening franchise package is $9,900 and we’ve included support, business and services training and even assistance with acquiring any tools and equipment you may need.
Just like the above-mentioned franchises, we’ve got a whole how-to guide on starting, running and growing a gardening business. And for those of you interested in the landscaping niche, we’ve got you covered as well.
Honourable Mentions
But if investing your money in a home repair and maintenance business isn’t your cup of tea, maybe some of our honourable mentions will help you narrow down your niche of choice. (Psst! We also have a guide on how to find and choose a business niche, as well.).
From starting a car detailing businesses (and eventually a YouTube account, as it’s the craze now) to running a successful coffee house and offering pizza – you have a huge amount of options in the Land Down Under.
Our top three choices go to CarCare, The Coffee Club and Little Ceasers (in no particular order). With the car detailing businesses taking the world by storm, and coffee being among Australia’s favourite drinks, it’s only logical to put your money in these niches. And with Little Ceasers taking the pizza market by storm they should be on your radar.
Business Opportunities in Australia, UK and USA
Not only are we offering businesses for sale below $20k, but we’re also worldwide. From Australia to the UK, and soon, the United States, Fantastic Services is providing the best home maintenance services with the help of technology.
With over 92% of Fantastic franchisees running a successful business and growing professionally, your investment in a franchise business with us is a sure way to recoup on your investment.
How to Find a Bargain Franchise
Okay, so finding the right business for sale under the $20k mark can be a bit tricky. Quite honestly, you need experience in the field in order to recognise a profitable franchise. Let’s take a look at some telltale signs that can quickly help you determine the best low-cost franchise for sale out there.
Research the Brand’s Online Presence
In 2019 any successful franchise business should have at the very least a modern and presentable website. Think of their online presence as the modern version of the business card.
While successful social media channels aren’t a must, it’s also a plus.
But dig deeper. Instead of just looking at what the company themselves are putting out, try to find what other people are saying about them, as well. After all, a business that’s working with clients and franchisees successfully should at the very minimum some types of reviews online.
Reach Out to the Company
Meet with the franchisors if their business opportunity seems interesting to you. Any professional franchise should be open to business meetings and discussing operations with them, no matter how low cost they may be.
Contact them and set a meeting in which you can discuss everything that you’re interested in their business.
If you’re interested in starting a business with us, just reach out!
Reach Out to Past and Present Franchisees
Talk with someone that has worked with them before. Try to find current or previous franchisees. Linked In is a great place for professionals, and any company should have at least some of their franchise owners on the platform.
Chat them up and see if they are interested to talk. Research everything from how satisfied they are with their experience with the company, to how they got started.
About the Authors
Created by Gratsiela Borisova, project manager of the Fantastic Services franchise sites in Australia and the UK, and Evgeni Asenov, blog strategist for Fantastic Services Australia. Both of them produce business-related content and share the ins and outs of starting and running a business in Australia.
