Should You Invest in a Service-Based Franchise?

The world where all service companies do business has changed dramatically in the last 20 years. So it should come as no surprise that the climate for service-based franchises has evolved too.

Two decades ago, there was an abundance of talented individuals who operated their own small businesses and provided services directly to consumers. Some that wanted to enter the business could install  phone systems, place yellow page ads, and wait for the phone to ring. 

Although service-based franchises did exist back then, they were only getting started and they were fewer in number. There are many more of them today, and they provide much better opportunities for people who decide to buy and operate them. 

In most cases, service franchises enjoy a better chance of succeeding in business today than their non-franchised competitors, because . . . 

The supply of service providers has shrunk. Because society has focused more on white-collar vs. blue collar jobs, fewer young people have focused on vocational jobs. As older tradespeople have retired, the supply of competent tradespeople has decreased greatly.  

Franchises now offer a staggering variety of services. If you attend a franchise expo and look at the many services that franchises are providing, you will quickly see that franchising is now offering most of the tools companies need to run their businesses – tools that an independent tradesperson cannot do on their own.

Being part of a franchise offers you many competitive advantages. Due to their sophistication and access to advanced equipment and technical resources, franchises today can provide a wide range of modern services that are in demand. And the training that many franchises provide to their owners further builds their competitive advantage in the marketplace. If customers want something done in the most modern way with the latest knowledge and technology, they call a franchise. 

Being a franchise equips you to price your services fairly and not have to win your customer based on price alone. People trust brands and professionalism and will pay more to be safe and know that a service will be done right. 

You enjoy the many advantages of being part of a recognized brand. When customers need a particular service, your franchise business will often be among the first that come to mind.

You have access to your franchise’s powerful marketing and advertising programs. Their sophistication, effectiveness and reach further build your competitive advantage. The days when yellow pages were all you needed are gone. 

Franchisors can offer the training that is key to success. You will have tools to train people in the technical skills necessary, with the obvious exception of certain traits that require licensing. There’s also training for customer service skills and sales skills that are critical to the success of the franchisee.

And Consider this Long-Term Trend . . . 

In the coming years, the quantity of skilled individual technicians is only going to become smaller and smaller and smaller. Owning a service-providing franchise will position you to meet that need and continue to profit and prosper in the years ahead. 

So am I a big believer in how smart it is to own a service franchise? Obviously, I am. If you are trying to decide what kind of franchise to buy, the service sector should be among the first you consider. 

 

Evan Hackel, Entrepreneur, Author, Speaker, Podcaster

As author, speaker, and consultant, Evan Hackel has been instrumental in launching more than 20 businesses and has managed a portfolio of brands with systemwide sales of more than $5 billion. He is the creator of Ingaged Leadership, is author of the book Ingaging Leadership Meets the Younger Generation and is a thought leader in the fields of leadership and success.Evan is the CEO of Ingage Consulting, Delta Payment Systems, and an advisor to The Learning Network (formerly Tortal Training). Reach Evan at [email protected], 781-820 7609 or visit www.evanhackelspeaks.com