8 Perks to a Service-Based Franchise Industry
There are differences to many types of franchising businesses. Those that have retail items where customers come in to browse and shop, those that serve food – whether fast, fast casual, or altogether fancy. Then there are service-based industries, where the business owners provide a service to their customers. This can range from any number of things: painting houses, installing gutters or roofs or repairing them, giving manicures or cutting hair – all of these, and a list of thousands of other specialties – are service franchise industries. Where you provide a service to your customers. Simple enough concept, right?
Yet these types of companies are so often overlooked in the type of value that they can provide. If you’re new to franchising or are considering your industry, take a look at the benefits that can come from a service industry.
1. You’re Doing Something Your Customers Can’t
In most cases, service franchises provide something that the normal consumer can’t do on their own. Maybe you have specialty equipment, perhaps it’s education or knowhow that the average Joe just doesn’t have. Are you preparing taxes? Providing financial advice? Offering childcare? All of these things might be a service that someone can’t or doesn’t want to do themselves. If and when this is the case, you can start celebrating. Right then and there you have an edge up with your business, simply that you’re offering something that people need or want. You’re in demand from day one. Don’t overlook the value of providing something that others need, but can’t do on their own. Do a good job and you’ll get repeat business for the long haul.
2. There are Levels of Revenue
Increase your training, offer various tiers of service, and more. Doing all of the above can create different revenue streams. It also helps your consumers have options as to how much they want to spend. Not everyone can afford the top price point, but they might be able to afford the lowest one. This can increase your customer base from day one, and provide the benefit that customers can choose what they want.
3. Repeat Business
When selling something, consumers might not need to return for years, if ever. But with a service, they’ll need to come back every so often to have you do the same service again. Maybe they come in for a waxing every six weeks, maybe they need their tires rotated every several months. Whatever you’re doing, it needs to be done again, eventually. Right there you’re setting yourself up for ongoing revenue with a franchise that provides something that’s repeatable to the same customers, over and over again.
4. Referral Leads
If you offer a franchise service that’s rare or if folks simply don’t know where to go, your name could soon be a hot commodity. Encourage your customers to refer to others for a deal, or simply do a great job and allow referrals to take place all on their own. When you’re providing a service that few can replicate, you’ll be surprised at how quickly your name gets passed around to the masses.
5. Smaller Overhead Expenses
While retail businesses will need to invest thousands just to get up and running, you can make due with much less. Once your equipment has been purchased, you can cut the spending and start earning. Sure, your franchise location will need products and items along the way, but on average, you’re spending far less than different types of businesses. Your parts can be reused, and you can still charge customers for their time with each tool or piece of equipment. For instance, if you do hair, you reuse your scissors and hair brushes, etc., and if you’re a bike mechanic, your wrenches will last for years. This means less spend on overhead overall.
6. You Can Create Your Ideal Size
As a franchise owner, it’s up to you how big or how small your operation will become. When providing a service, you can remain the sole owner-operator. Or, you can hire tens of employees and train them all how to do a great job. The end state is up to you. You can even start out small (part time if you wish), and see just how big your gig can get. There’s no “must reach” size for your brand, but instead, you can tailor your franchise business to your exact needs or ambitions as a business owner.
7. Branch Out into Retail (If you want to)
You might also find that there’s good money in offering products to your customers. That’s strictly your call. But if it’s a good lead for your franchise location, you can offer relevant products to consumers. Or if you don’t want to fuss with it, steer clear. There’s no harm, no foul either way. Just one more perk to a business that offers a service in a franchise setting.
8. Ongoing Training is Available
Chances are, you like your industry. That’s likely why you got into your franchising business in the first place. But you don’t have to be stuck doing the same thing day-in and day-out. You can actually continue your training and learn more as you grow. Your business skills will advance while running your franchise. But you will also be able to attend training events, advance your education, and growing in your field. Choose the methods that mean the most to you and pursue them. It’s a great way to remain fulfilled in what you do, as well as adding value to your business.
By Bethaney Wallace | Jul 30, 2021 | Recent Franchise News