126 Million U.S. Households Will Likely Need Home Services Franchise Assistance
There are about 126 million households in the United States according to the U.S. Census Bureau. This translates into an endless supply of customers seeking good and reliable home maintenance assistance whether it be for their gardens, houses (inside and out), pools, or driveways!
Exploring the multitude of home services franchise opportunities available in order to determine which one you’d enjoy owning most may seem daunting at first, but following these steps will help you do so.
1. Think about what type of home service interests you most.
Home services franchises typically fall into one of six overarching categories, each features multiple subcategories. To begin your franchise research, narrow down which home services opportunities you think you’d enjoy doing most.
- Repair/Maintenance: Work needed to maintain the home in good shape.
- Cleaning: Can be outdoors (window, siding) or indoors.
- Landscaping: Includes lawn maintenance, hardscape elements that enhance overall curb appeal (stone, lumber etc.) and putting in new plantings.
- Decoration: Usually interior design (paint colors, furniture, etc.).
- Restoration: Work done on a property after it is damaged due to a severe leak, fire, tree falling, or other natural disaster.
- Renovation: Home design projects that are done to enhance the home ranging from adding a bathroom to a new addition.
2. Determine what services are in demand in your area.
It’s important to invest in a home services franchise business that provides a service many people in your marketplace need. For example, if you live in an area with long winters where most people do not have swimming pools, investing in a pool maintenance business may not be the best idea. Spend time researching what services are in demand in your area, ideally throughout the year, that serve a large target market.
3. Find out which franchise is a good fit.
If you happen to enjoy cleaning, find satisfaction in repairing or building things, or love working outside, then you may be drawn towards certain home services franchises. There are, however, many home services franchise opportunities that might be ideal for you even if you are lacking the technical expertise. This is because the franchisor provides you with a proven system you simply have to execute. In fact, some franchisors prefer franchisees lacking specific technical expertise as long as they have an entrepreneurial spirit, great work ethic, and team building skills. This is because the franchisor either likes for their franchisees to learn how to do things the way they do them or the franchise model entails building a strong team to do the actual work that the franchisee will manage.
4. Crunch numbers to find out how much you can you afford to invest.
Overextending yourself financially will create personal and financial stress and most likely mean you will not have a monetary cushion to support yourself and your family until your business is profitable enough to draw a salary that will enable you to maintain the lifestyle to which you are accustomed.
When determining how much you can afford to invest in a home services franchise consider the following:
- Startup costs: The startup costs, those required to get your business open and to launch it, will vary between home services franchises. The good news is that many home services franchises have a relatively low entry cost because they don’t require you to have a lot of equipment or even an office space.
- Ongoing fees: What will the franchise charge for royalties and marketing? Royalty fees provide you with the right to use the franchisor’s trademarks and patented processes and to benefit from various types of support. Marketing fees go towards maintaining visibility for your franchise brand in order to drive business.
- How much money you might make: Your franchisor’s Franchise Disclosure Document (FDD) may contain some insight into how much money you could make, but it is important to keep in mind that some franchisees may be in a market where the service is in particularly high demand and be very sharp businesspeople. This is not the case for all franchisees. For this reason, it’s crucial that you spend time speaking with at least half a dozen franchisees in markets similar to yours to find out how profitable they are and how much money they earned during their first few years in business.
- Financial cushion: How much money do you and your family need to live in the manner you are accustomed to for at least a year? You should have this amount in the bank since, depending on the franchise model you select, it could take at least a year for you to be able to draw the salary you need.
You can find information regarding startup costs and ongoing fees within your franchisor’s FDD. It’s a good idea to review all the financial information you obtain via your research with an accountant in order to help ensure the home services franchise you are investing in can meet your financial objectives within a predetermined time frame.
Investing in a home services franchise offers many advantages that someone starting a business from scratch does not have. As mentioned earlier, you’ll be operating under a brand name and receive a proven operating system, training, and ongoing support in a variety of areas including sales, marketing, and technology. As a result, you’ll likely not encounter many of the challenges solo entrepreneurs face.
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