Franchising

Three Growing Areas to Start Successful Franchises

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With all the hype thrown around,  it’s hard to tell what’s legitimate and what’s greasy. When you research different franchises, there’s a lot of pageantry involved with Discovery Days and the boasting of irrelevant figures. Buying a franchise should look more like a partnership, even with the big guys. It is illegal to disclose how much any individual franchise location will make, and past profits will be included in the FDD. This puts future franchise owners in a precarious spot. This is why transparency and research are the road lines in the street of due diligence. So what are the successful franchises and what are the sinking ships?

Looking at the industry as a whole helps future owners get a comprehensive peak at their possible ROI. The three industries that dominate the franchise market are also the fastest growing: Quick-Service Restaurants, Pet Services, and Maintenance.

Let’s examine each to see the pros and cons of investment.

Quick-Service Restaurants

Since 1955, when the golden arches first opened their doors to franchising and burger gourmands alike, the fast food titans have reigned the market. This has forced newcomers to innovate. The new models are designed with a more upscale ambiance. A popular model is the quick customizable menu choices that were first popularized by Chipotle. One step further, are the all-natural healthier alternative chains who are gaining huge traction, like Panera Bread.

Although in the past two years, McDonald’s did close around 750 locations. In the same time period—the chain opened 1,000 additions to their international location count. These openings offset the failing locations. The net 300 additions are keeping the franchise afloat. If anything, this is indicative of a shifting market and how franchisee ambition can make or break the success of a restaurant.

One thing is for sure, whether you plan on opening a Subway or a Taco Bell you’re well within an industry that will not budge.

The Pet Franchise Industry

Many have found a way to translate their love for animals into owning successful franchises in the currently exploding pet industry. Pet ownership is on the rise with 84.6 million homes in the U.S. reporting to own pets. In response to the demand for pet food, care, medical services, and dog leashes franchising in all-things-pets has become a lucrative and joyful experience for franchise owners.

The industry has been steadily rising since the early 90’s.  Spending really took off during the recession and 2015 when spending increased by almost 11%, or $6.47 billion.

This new demand opened the floodgates for workers ditching corporate America and finding better opportunities owning anything from a pet grooming franchise to a dog training center. Mobile grooming is also taking off. Many pet owners prefer the convenience of getting their dog’s grooming done from their house. The dual pet grooming shops that also sell retail items have seen enormous growth too. These franchises model the mom-and-pop pet store but have profitable business concepts like recurring revenue to continually push the business forward. The advantages of these concepts are proliferating into successful franchises.

As pets become more of a staple of American life, and the norm becomes thinking of them as children who should be spoiled as such, it is evident this industry will continue to swell.

Maintenance Franchises

Low start-up costs, the inevitability of everything getting dirty, and eventually breaking is the recipe for dozens of successful franchises in the maintenance industry.

Maid services, lawn care, electrical, and appliance repair are just a few niches within the second largest segment in the franchise domain. Maintenance franchises make up 12.6% of the market. This growth welcomes handymen everywhere to put their practical skills to money-making uses with proven business models.

The best franchises to research are ones with environmentally friendly messages and solutions. As more awareness of carbon footprints and sustainability increases, many customers will opt for eco-friendly products and services. Consumers are typically willing to pay higher costs for cleaner solutions.

Franchises like NaturaLawn of America, Mosquito Squad, and You’ve got Maids are all great places to start the search. However, be wary of franchises that have come into some controversial heat in the last few years. A few companies have been sued for fraud and other unethical business practices and publicity of this nature is not the brand you want to represent. All litigation will be disclosed in an FDD.

The Secret to Successful Franchises Everyone Knows About

Yes—research, instincts, and finding the perfect match are all crucial when shopping around for small businesses. But the real reason franchise owners earn their ROI a year after opening—then go on to expand and earn considerable wealth—is they were able to take a critical look at themselves.

Owning a small business takes dedication. You are in a constant flux of creativity. When market trends shift out of your favor, how do develop a marketing campaign to bring customers back? When construction begins on the street in front of your shop, how do you endure the shortage of foot traffic?

The answer is passion.

Find out what you are passionate about. Then you will not only be able to reach successful heights, but the everyday challenges of owning a business will play an integral factor in your happiness.

Good luck!

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Business Ideas for Women: Why Franchising Works

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The business world is no longer the climate of males with power suits and marginalizing ideals. Women have exploded into the startup sphere and franchise world alike—offering refreshing and nuanced views into an enterprise and how to start and successfully run a business.  An increasingly common framework is women taking control of their careers, venturing into entrepreneurial realms.  Business ideas for women span from website management to pet sitting, but how do you settle on the right business plan?

It all starts with an idea.

Mix a little introspection and a feasible business concept.  Entrepreneurial women have taken market segments by storm. If you want to own your own small business and become your own boss, it begins with an idea. Ask yourself these questions:

  • What is your goal for your business?
  • What are your interests? What do you like to do?
  • What are good at?
  • What do you want to learn?
  • What makes you happy?

What is your Objective?

Do you want to earn a second income? Many women consider representing another company selling insurance, cosmetics, or timeshares. The list doesn’t stop there! The sales segment of the marketplace is constantly widening—inviting many women to make strong figures as an independent sales rep.

Freelancing is also gaining strength in the digital schematic. Blogging, software development, and website management are also budding sideline careers where women can earn some extra cash.

Do you want to work in a career that offers flexibility to spend time with the family? Many entrepreneurs quit their job, not only because they are tired of corporate America, but because it’s basically impossible to raise a family while working a 9-5. Becoming self-employed gives you the keys to your schedule.

Do you want to change the world? One of the most challenging business ideas for women is starting a co-op or nonprofit. The work will be intensive, but if you are poised you can make this dream a reality.

Do you want to contribute back to society and better the community around you? This is good. Too many people depart corporate careers to start their own business with purely fiscal motivations. With this mindset, you are going to fail. It takes passion to deliver the intrinsic motivation necessary to see true success in all industries of business.

Consider a Successful Business Model: Franchising

“The gambling known as business looks with austere disfavor upon the business known as gambling—Ambrose Bierce.”

Business experts tend to agree with Bierce. We interpret Bierce’s words to mean that yes, business is about risk, but what separates it from gambling are the certainties. A calculated risk is the business-savvy gamble business owners make when investing with a franchise that fits them.

Many opt for franchising because it offers more stability. You take a brand, and a concept in a pathway of your choosing, and success becomes much easier because the path is already carved. It’s easier to go when one has already gone before you. Many of the time-consuming and expensive tasks of owning a business are already fine-tuned in franchising.

This comforting when 51% of small business fail in the first four years, according to the National Association of Small Business’s Economic Report.

Franchising offers:

  • Brand Awareness
  • Support
  • Training
  • Access to Inventory, Equipment, and Supplies
  • Marketing
  • Faster ROI (Return on Investment)
  • Culture Fit
  • Proprietary Software

When you are in league with a good franchisor, they should treat you as a business partner—fully invested in your success.

Women and Franchising

The ‘Glass Ceiling’ is cracking and in some cases shattering within various business ideas for women. The franchise sector is helping many women escape outmoded constraints found in the traditional workforce.  According to a Women-Owned Businesses Report, between 1997 and 2014 the number of women-owned business increased by 59%. Compared with the 41% of male-owned business growth during the same time period.

The franchise world has open doors embracing women to help level the playing field. According to the Wall Street Journal, 28.1% of the sector is dominated by women owners and is widening further in 2017. (Lets push this numbers up!) As the playing field diversifies many wonder, why women are overturning job offers to begin franchising?

The reason is overall satisfaction.

The Franchise Business Review surveyed 6,400 women representing 300 franchise brands from July 2015 to December 2016 to report new numbers on female participation. What they found is pleasing.

Key Findings of the Study:

  • 90% of women enjoy operating their business
  • 85% state they would recommend their franchise brand to others
  • 88% state they enjoy being part of their organization
  • 84% say the respect their franchisor
  • 74% state they would do it again knowing what they know today
  • 54% of female franchisees state overall work/life is balanced

Compared with the reports of employee disengagement across various industries in America, these statistics are quite impressive. We hope this is a beckoning force for more women to abandon the hypocrisy of corporate jobs and start calling the shots by becoming self-employed as a franchisee.

What other business ideas for women are opening in different markets?

Pet Care: A Booming Industry

The pet industry first started gaining traction after the huge expansion which began during the Great Recession. During the recession, the pet industry proved itself recession-proof—an industry economically independent of the climate of the rest of the marketplace.

Since 1994, the industry has holistically grown by a galvanizing 269%. Last year, total expenditures ended at $66.75 billion—10.7% growth from the previous year. Even more impressive was that pet industry’s expansion surpassed forecasts given by economic analysts. The projection for the 2017 year is estimated to end at $69.36 billion.

There are several societal factors contributing to the continuum of expansion in the pet industry. First, the baby boomers are retiring. Retirees follow the market trends of getting a dog for companionship in their golden years. This trend is also giving way to even more promising news for pet franchises—Millennials are now the primary pet owners in America.  Of the 68% of U.S. households that own a pet, 35% are Millennials. Combined, the two demographics add up to 67% of the 84.6 million households that own a pet.

The third reason needs no explanation. Dogs are cute—plain and simple. Don’t believe it? Scroll through the themes of this summer’s Hollywood hits coming to theaters to see all the pet-related movie premieres.

How Do Women Fit into All of this?

Right at the center.

Two women who have found a successful haven in Splash and Dash Groomerie & Boutique family are Beth McElroy and Valayia Smith. Both women have become huge leaders in their community by pursuing business ideas for women and from women.

Beth owns her shop in Monroe, New York.

“It’s outside of anything I’ve ever seen in pet grooming salon. I had my own pet grooming salon for 33 years,” McElroy tells us. “Splash and Dash franchise is the only one that has embraced the grooming industry. It’s a big step but my experience has been the most exciting move I’ve made.”

Beth joined on early in Splash and Dash franchise and has been attaining been streamlining her goals since.

Valayia, on the other hand, is new to the franchise but is already making huge splashes at her shop in Alamo Heights, Texas. “I Just knew I needed change. I just wasn’t cut out for corporate America. I had to find something where I could still make the income I made as a consultant, but I could come home every day.” Smith said. “I started looking for opportunities and I found Splash and Dash. I loved what I found. Nothing exists like this is in San Antonio.”

Valayia has been setting company records in sales as a leader in an already leading franchise in the grooming industry.

Don’t let your dreams pass you by! Explore franchise opportunities now.

 

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