The sheer number of home remodeling franchises in the United States and the fact that franchises tend to consistently outperform the overall U.S. economy in terms of growth and employment opportunities suggest that franchising is a reliable way of going into business for yourself.
Instead of guessing at what works or what customers in your area are interested in, franchisors use software, census data, and consumer surveys to hone in on prime locations and industry best practices. To sum it up: You’re going into business for yourself, but never by yourself.
Keys to Hitting the Ground Running
Franchising connects you with a proven business model, nationwide marketing associations, area developers who are willing to work with you to find prime locations, and all the training you need to hit the ground running.
Ask a Lot of Yourself and Your Franchisor
Asking a lot of yourself—and making your needs known to franchisors by asking questions and constantly seeking ways to enhance your skills—can help you succeed in your opening year and potentially decades down the line.
Still, there’s no substitute for amazing day in, day out customer service and a willingness to consider expansion opportunities and new training protocols. That said, it’s important to approach franchising with a systems orientation and focus on adhering to a proven business model.
Follow the System . . . With a Smile!
You should be striving to couple a systems orientation and dedication to a proven business model with personable customer service and the modesty to ask for help if you need it. It’s okay to draw upon your franchisor’s marketing resources or—if you’re feeling overwhelmed—hire a franchise manager to negotiate some of the workload.
You want to go over the franchise disclosure document with a fine-tooth comb before signing your franchise agreement (more legally binding). The former can clue you in to the profitability of your future undertaking, and the latter can give you a good idea of what you’ll be doing on a day-to-day basis.
Franchise agreements can tell you things like your operating hours and the licensed lineup of products that you’ll be selling. However, it’s ultimately service with a smile and enthusiasm that will make your franchise a success!
Ensure Adequate Financing for Your Dreams
Before you look at a franchise disclosure document, you’ll want to calculate your net worth and current liquidity to determine the scope of your franchising ambitions. Loans can play a role, but it’s important to align your expectations with your financial resources.
Although you can usually attain loans from your franchisor, a private lender, or government-backed lenders like the Small Business Association, you should factor in your net worth when deciding how ambitious to be when you start the process of franchising.
For instance, if your net worth and liquidity are constrained, then you might want to consider starting your franchising journey with just one location instead of negotiating ambitious multi-unit expansion contracts spread out over many years.
Remain Open to Expansion Opportunities
Franchisees should realize upfront that expanding into new markets benefits both franchisees and franchisors—and the customers that both serve. By expanding into new markets, franchisees increase the franchise’s brand awareness and achieve more market penetration.
This helps the franchisee get more business and enjoy greater economies of scale and word-of-mouth referral traffic. In turn, franchisors expand their operations and gain a percentage of the franchisee’s sales through royalty fees. Expansion is a win-win-win for franchisees, franchisors, and customers when done right!
Interested in learning more about our home remodeling franchise at TREND Transformations®? Then visit our website today!