So many of you have been reaching out to me inquiring about home service franchises. Since I've been getting so many questions I thought it would be helpful to share these with you of my top 8 reasons to invest in a home services franchise. Of course, if you'd like to discuss options that might be a good fit for you, grab a virtual coffee on my calendar.
When you think of home service franchises what you do you think of? There are many different types: window cleaning, roofs/gutters, concrete repair, pools, plumbing, electrical, pest control, and more! If it's on or in the home, it will need attention or beg for an upgrade at some point.
Here's your 8 reasons to look at investing in a home service franchise
Reason #1 Rising Demand For Older Homes
At the end of last year, the U.S. population clocked in at 329.5 million people. Unfortunately, thanks to labor shortages and a spike in lumber costs, the new construction rate couldn't quite keep up; the U.S. housing pool is short around 5.24 million homes, according to Realtor.com This translates to a greater demand for home service businesses to upgrade, repair and make livable the existing structures around the country.
Reason #2 Dual Income Families
Ready for that swimming pool? Perhaps a decorative water feature out front? Around 53.3% of U.S. households are dual income. The disposable income often goes towards the non-necessity "must-haves" of our culture. If you love the creativity that can go into some types of home service franchises, such as decorative glass or creative remodels, consider the fact that certain markets have higher rates of disposable incomes than others and plant yourself accordingly.
Reason #3 Short on Time
Going hand-in-hand with our dual income households, American families have less time to spend on home projects. Things like pressure washing the driveway, cleaning the gutters, and landscaping are better left to the professionals to save precious time.
Reason #4 Procedures Are Set
As with all franchises, the procedures are set. With an operational manual in hand and a franchise support team at your back, you can rest assured that your business is set up for a successful journey. Many home service franchises begin as part of a passion or family business, meaning that the systems in place are those designed by years of refinement and hands-on expertise.
Reason #5 Scheduling and Flexibility
Ironically, home service franchises are often home-based (unless inventory needs to be kept on hand or a showroom is needed). Working out of a home office offers more flexibility to life than a commute to an office and means booking jobs from the beach may also be in the cards. Depending on your personal preference, your home service franchise can offer service hours later in the day, only on the weekends, or be closed on Mondays.
Reason #6 Scalability and Marketing
Home service franchises are extremely scalable. It may be as simple as finding an additional qualified employee and adding a new vehicle to the fleet to increase cash flow. There may not be a need to put large amounts of additional ad dollars towards your expansion due to the natural lead exchange among your local network and the organic buzz of your satisfied customers (reviews are your best friend). Adding an easy-to-follow referral system is another great way to scale quickly as your resources and time allow.
Reason #7 Bridging The Gap
Along the same lines as scalability, I must mention here the fact that many home service franchises bridge the gap between residential and commercial clientele. Everything from glass repair to pressure washing can be pitched on both sides.
Reason #8 Higher Margins
With less overhead, home service franchises often have higher margins baked in. Many franchises require a branded vehicle, but the vehicle may be used in some cases to help keep start-up expenses low. With the proper knowledge and training, a franchisee can be in business for a fraction of the cost of that of a brick-and-mortar franchise, begin earning quickly, and start earning profit faster than other business models. As you explore different franchises, check out Item 19 in the franchise disclosure document to review past financial performance data and to get a truer picture of the profit margins for that particular company. (Don't worry, I'll help you with this!)
See why I'm so excited about home service franchises? They're an excellent, typically low-risk path for first-time entrepreneurs or those looking to expand their business portfolio.
What's Your Next? - Podcast
 | Author BioI’m Stacey Riska aka “Small Business Stacey”, your franchise placement specialist. I help aspiring business owners find the PERFECT franchise so they can get to the next level in life and business. |
