Advantages And Disadvantages Of A Handyman Franchise

A handyman business is one of the most lucrative businesses in the country, and even the world, mainly because most people do not have the means or the time to repair and maintain their houses. Even if you are a small-time handyman service provider, you are ensured of regular and consistent flow of projects because there are over 100 million households in the country.

Even if there are many home improvements and do-it-yourself books on home repair and maintenance, many still get the services of their local handyman for both minor and major repairs because they do not have to do the work themselves. The need for handyman service is expected to rise even more in the future because of the climbing elderly population and the rising number of dual-income earners.

If you just want to enter the US$30 billion handyman industry, but do not have the expertise to open up your own shop, then you can opt to try a handyman business franchise. In franchising a business, you don’t need to think of a business idea and even a business formula.

Benefits of franchising a handyman business

The most obvious advantage of entering the handyman industry is its prospect for growth. As mentioned earlier, the potential of the handyman industry of becoming bigger in the future is expected. Most people will want to put their money in a business or industry that is reliable and has a good chance of success.

If you want to lower the risk of failure, then business franchising is for you. A handyman franchise, or any business franchise for that matter, will provide you with ample training and support to help you succeed. Since royalty fees are based on the performance of franchisees, the company or business that you will be franchising would want you and your business to flourish and succeed.

When you buy a franchise, you are basically paying for the right to use the business model, system, name, credibility and branding or trademark of a company. Thus, you don’t need to think of making up a brand of your own. Moreover, people will tend to trust your business more than the ones that are just starting because they are familiar with the name and the brand that you are carrying.

Starting a business from scratch is a long and tedious process because you have to make your own model, name, and system. However, if you buy a franchise, you can start almost immediately after paying for the franchising fee and getting all the necessary government permits.

From day one, the company whose business franchise you will be buying will be there to help you from looking for the perfect place to set up the shop to recruiting employees.

Disadvantages of franchising a handyman business

One of the major disadvantages of buying a franchise is cost. You will almost always need more money to buy a franchise than setting up your own business. Aside from the usually high franchise fees, you also need to pay monthly or yearly royalty fees for as long as you are a franchisee.

If you are a person who wants utmost freedom in managing your business, then franchising is not for you. If you buy a handyman franchise, you have to abide by the rules and regulations. More often than not, failure to comply with the rules will result to the revocation of your franchise.

Franchising a business, whether its a handyman business or not, is not for everybody. Thus, you need to really take in consideration your personality and leadership style, before even paying for a franchise fee.

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8 Top Reasons to Own a Pet Franchise

Do you love pets and have an entrepreneurial spirit? Pet owners sure do, based on their spending habits. Did you know that there are some fantastic pet franchise business opportunities that you can operate from a home office, like pet cleaning and grooming, as well as dog training and doggie daycare? Some may contend that pet services fall into the "luxury" category, but historically speaking, consumers have an unconditional love for their pets and do not sacrifice in this area. The pet industry is huge and flourishes during even a bad economy.

The vast majority of pet owners in America consider their four-legged friends as part of the family, just as any person in the household. Many pet owners feed "Max" table scraps and let him sleep in a regular human bed. And no, this love affair does not end with dogs. Cat owners seem to permit unusual pet behavior as well, allowing their felines to jump up onto counters, drink milk from their owner’s cereal bowl, and even take a nap on the newspaper currently being read. Some go as far as giving their pets human names. You get the picture.

For every three households in America, one owns a dog. That’s an enormous market, with almost 70 million dogs in the United States alone. Americans are spending $41 billion per year on their pets, and that figure is projected to reach $50 billion within the next couple of years. This obsession with pet companionship creates a rapidly expanding business demand that has barely scratched the surface. The number of pet franchises are on a steep upswing, as pet lovers combine their devotion to animals with their desire to be in business for themselves.

When you combine your passion for pets, desire to grow a high-demand business, and strong work ethic, you’ll enjoy some key advantages and benefits of a pet franchise:

No prior experience in the pet industry.

Home based with typically low start-up costs.

Very high repeat business.

Exclusive territory with demographic research statistics to refer to.

Recession resistant, as proven above.

Complete training and support provided on all aspects of the business.

Scale the franchise from a single unit to multiple units.

"Feel Good" Business.

Pet franchise owners provide a welcome product/service and do business with happy consumers who love their animals and won’t hesitate to splurge on them. At the end of the day, as a franchisee, you’ll have a deep satisfaction in knowing that you made a difference to a pet and to their owner. It’s most certainly a "feel good" business.

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Franchise – How to Finance Your Perfect Franchise

Franchise opportunities provide the best of both worlds for aspiring entrepreneurs as they give you the freedom and independence to operate your own business while also having the backing and support of a major organization. For aspiring business owners, franchises can provide a great way to realize a stable income with great opportunity for growth and expansion.

One of the biggest challenges for potential franchise owners, however, is finding cost effective ways to finance the startup or expansion of a particular franchise. While traditional sources such as bank loans may not be an ideal option for franchise owners, there are some great ways to ensure effective financing of your new franchise that still gives you control over everyday operations.

Company Initiatives

One effective way to finance a new franchise opportunity is to look into direct loans from the company’s central ownership. Many times, you can fund a new startup with a minimal down payment and reasonable financing rates from the company’s central office. These rates are generally reasonable relative to the conditions placed by external lenders, and have built-in flexibility to allow you to begin to pay off the principal based on the return of your new business. With an integrated lending and training program, expanding companies work with potential franchisees to offer cost effective options for new franchise openings, as well as providing low-interest loans for expansion into new territories. Since companies want to actively encourage the development of successful franchise owners, they will often lend a hand with initial financial constraints.

Traditional Funding

Many Franchises will have credit links with specific banks. Even if the bank you talk with has not got an agreement in place with your specific franchise, providing you present a compelling business plan encompassing a recognised franchise that should ensure you are looked at more favorably.

An Angel From Heaven

Another option that many potential franchise owners turn to is angel funding, which is early stage capital from investors, friends and family in return for partial ownership. If purchasing a franchise directly is out of your reach, then it may be an option to work with several business partners to build up your capital base.

Make sure that you work well with your business partners as their input will be valuable as minority owners in the new business. In addition to gaining important access to new working capital, your business partners can provide ideas, connections and other valuable assets for your company. Especially if you are a first-time business owner, working with experienced business professionals as minority partners can help accelerate your learning curve in the process.

Being Creative

The single most effective way to finance your new business franchise is to find creative ways to save by reducing your monthly expenses, while at the same time generating an additional income. Putting in the hard work to save up enough to finance the new venture can provide a cost-effective way to get better results from your business, as well as instilling the necessary discipline within your organisation from the very top.

Look at franchise opportunities that require limited start up costs, such as service organizations or online, so that you can provide as much self-financing for the new venture as possible. While it’s likely that you will have to resort to external funding initially, try and limit your borrowing for the essentials so that you create a sustainable balance sheet going forward.

Master Stroke

When I was looking at traditional franchises I was looking at £15000 – £25000 investment but the fact is the best franchises don’t have to be expensive. People only think of traditional high ticket price franchises, but the fact is there are some incredibly powerful online franchise opportunities which you can join with minimal investment and therefore minimal financing.

Think laterally about the financing opportunities available and you will easily be able to finance entry into an effective franchise very easily.

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