Service Business Industry and Top Franchises
An individual can enter into two types of franchise business, one is a product based franchise & other is a franchise based on providing intangible services that make life simpler & convenient for the consumers. This industry caters to day-to-day needs of the consumers & also in providing professional and specialized services.
Skills, knowledge and experience are the main components which can turn assets into thriving business. And everyone possesses the skills and knowledge that other people are willing to pay for either in the form of a service or in the form of acquiring knowledge from those who possess specific skill or experience.
Selling a service has no boundaries; anyone with a desire to earn extra money can sell a service regardless of his/her age, business experience, education or current financial position. Since, this involves a more specialized knowledge & usually the owner handles various functions, labor does not play much role in this industry. There is a plethora of service franchise for sale in the market.
Business of selling services has many advantages associated with it. The biggest advantage of service business is becoming your own boss and having an adequate control on your future. Working for oneself has many advantages over working for others. Managing and operating your own business gives enough potential to earn more money which is treated as the biggest advantage of starting a service business. While working for others, it’s just you and you’re so many hours in a day to work for a specific amount of salary whereas while operating your own business, you can simply duplicate yourself by hiring more employees and salespersons to earn more revenue. As a result you will duplicate your customers as well as geographical areas to provide your services to more and more customers and earn more profit.
There are many way of entering into a service business:
- Selling services on a part-time basis- initially: Selling services on a part-time basis is considered to be a good option because it eliminates much of the financial risk. It helps you in testing yourself whether you are eligible for starting your own service business. If the business turns out to be a success, then you can simply transform your business into a full time business and earn more profit.
- Selling services on a full-time basis: This option is more appealing for those individuals who are confident about being the boss and operating a business. Starting a service business on a full-time basis requires a full-time research on the particular business, industry and marketplace. It also requires development of plans in key areas like business and marketing and having the necessary financial resources to start the business until it becomes profitable.
- Selling services seasonally: Another option is to start a service business seasonally. This can be done with a full or a part-time effort. Seasonal business includes selling services like snow removal in winters, yard maintenance in summers in northern climates, income tax preparation in spring. This type of a service business is beneficial to those who want the ability to earn enough money during a part of the year in order to do as they please with the rest of the year.
- Selling services to supplement retirement income: The fourth and the last option is to sell services either for fun or to supplement retirement income. These businesses have become extremely popular because of the increased cost of living. As a result, many people head into retirement needing a little extra income to cover expenses or to maintain their pre-retirement lifestyle.
The major issues to be considered while starting service business are income and the amount to be invested. Income is the most important aspect of one’s life. While starting a service business, one should compare the amount of income expected and the income from current occupation. Once the business is successful, income might exceed the expectations but, in the other case, if the person is not able to earn the desired income then he should think of newer and better ideas for pursuing his business in the future.
Secondly, the person should have the necessary financial resources to start the business. Along with investment capital working capital is also required to meet the day-to-day operating expenses until the business receive regular cash flows. Financial compatibility is a must while deciding what services to sell. If one is not able to generate enough resources to start the business and pay operating expenses, alternative options such as starting a part-time business, choosing to start a different business or else wait until the money needed is available to get started.
The following franchises lead the charge when it comes to buy a services business:
- ACFN franchised Inc.: This is North America’s only ATM which helps in developing own private network of ATM machines. The startup cost for such franchises is $35000-$47500. With the help of a proven turnkey system, the ATM franchise business has developed hundreds of franchises. ACFM identifies locations, negotiate and obtain the contract for the placement of ATMs. It focuses mainly on high end locations like Hotels & other luxury venues for travel and entertainment.
- Batteries plus bulbs: It is the first battery and light bulb franchise opened in Green Bay, in 1988. It provides selection from over 45000 batteries, light bulbs and related products to meet the growing demand of business and retail consumers at the local and national levels. Batteries plus bulbs have recorded their highest sales in 2009 by serving the $30.7 billion U.S. battery industry and the rapidly growing U.S. light bulb industry. This offers multiple franchise options including retails & B2B.
- Chem-dry cleaning: A franchise found in the year 1977, is the world’s largest floor cleaning franchise. This franchise has been offering professional, environmentally safe services using a hot carbonated water extraction cleaning method which efficiently removes dirt and stains from surfaces. Chem-dry’s benefits go beyond effective cleaning. This franchise also provides small business loans for as little as $6000 to those franchises who want to setup small businesses. It uses best-in-class cleaning products and gives the employees’ best training.
- Jim’s brand: The Jim’s group is about 20 years old with over 2500 franchisees across Australia. This is one of the World’s largest home service providers. Jim’s provide the required training, support & systems to operate a successful franchise. Example Jims Test and Tag, Jims building and maintainence etc
- Crestcom international, LLC: This franchise is engaged in training in the areas of management and leadership. Crestcom has become one of the best training franchises in the management industry. It has been named among fortune magazine’s top 100 companies. Crestcom was founded in 1987 and more than one lakh business professionals have become a part of the training program to improve their performance to achieve desired goals. Every new Crestcom franchisee is provided a 100 day plan that includes initial training and sharing of various manuals related to marketing, accounting etc. It also shares a complete list of clients with details to enable franchisee identify its potential clients.
- Edible arrangements: Edible has been named the number 1 franchise in fresh fruit arrangement, gifts and treats. With minimum investment cost, this franchise is an opportunity for ambitious entrepreneurs to capitalize on a growing market. Edible’s managers are working on traditional retail stores and developing new stores. More than 700 entrepreneurs from 12 different countries have joined edible arrangements and opened new retail stores at different locations across the globe.
- Miracle method: With over 7000 high-tech fittings this franchise leads the charge in moderating bathrooms and kitchens. The franchise believes that more than 90 percent of kitchens and bathrooms need updating and we always come up with new and better ideas of transforming them. The startup cost for this type of franchise is $80000-$125000. The demand for new and well-equipped fittings is on rise and so is the supply. The professionals at miracle method are working on different and better ideas to transform kitchen and bathrooms. The use of superior refinishing quality and excellent service has helped the franchise to become the Nation’s largest and the most preferred refinisher for many homeowners and property managers.
These were some of the very successful franchises which are delivering their business services to millions of consumers across the globe. These franchises are promoting small businesses to come up with new innovative ideas and generate more employment. Many financial institutions have been setup to aid those with creative ideas but inefficient resources. Credits and loans are given to new service businesses for investment and day-to-day working capital requirements. The growth of different service businesses has given the market a new platform to work. A new market awaits these small creative ideas for growth and success.