The home care industry is emerging as one of the top sectors for franchising in terms of profitability and franchisee satisfaction, according to a new report released recently by market research firm Franchise Business Review (FBR).
To compile the report, FBR researchers reviewed more than 35 senior care franchise companies, interviewed CEOs at some of the leading franchise brands, and surveyed 1,348 franchisees.
Franchisees were asked to rank their franchise systems in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. Franchisees also answered questions about their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community.
The third annual FBR report for 2012 showed that senior care franchisees rate their satisfaction higher than the benchmark in the categories of Training & Support, Franchise System, Leadership, Financial Opportunity, Core Values, and Franchise Community. In addition, overall satisfaction in the senior care space was 11% higher than FBR’s benchmark.
From a demographic perspective, the franchisees surveyed for FBR’s 2012 report had some similar characteristics: Most had fairly new businesses (76% had been in business for less than five years) and were in big markets (57% were in markets with a population of at least 250,000 people). The majority of franchisees (more than 65%) were over the age of 45, and 86% were Caucasian. There tend to be more female franchisees in the senior care sector than in other sectors, and they tend to be better educated (74% with at least a bachelor’s degree vs. 57% in all of franchising).
You can learn more about a wide variety of franchise options during our free June 26 webinar,Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
The New York Times profiled several franchisees in its Wealth Matters column recently and found that it takes a certain kind of entrepreneur to succeed as a franchisee: one who is comfortable running a business in a prescribed way.
And for those who have a passion for managing a process, investing in franchises can be very lucrative.
Lawrence J. Cohen, president and CEO of Cookie Associates, which owns Great American Cookies, TCBY and Pretzelmaker franchise stores, said, “The nice thing about franchises is you have an entrepreneur who has a product or a service and they have proven they can be successful selling it. They don’t guarantee success. But if you do it their way, your chances of success are far greater than if you do it on your own.”
The franchise investors profiled in the Times article agreed on one critical component of a successful franchise operation: paying attention to the people part of the business. Having someone to manage the day-to-day operations is crucial, and people who just want to invest in a franchise need to hire proven operators.
For investors who want to run more than one franchise, the type of franchise they start with matters. One investor says he chose Kentucky Fried Chicken because he knew it would be easier to get financing for a proven business with a good track record and customer base.
You can learn more about franchise investment opportunities at our free June 26 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
Franchises owned by military veterans have annual revenues of $41 billion annually and employ 1.5 million people, according to the International Franchise Association.
And according to a new research report, 2012 Military Friendly Franchise List, the total number of veteran-owned franchise businesses among the most military-friendly franchise companies increased by almost 35 percent to a record 11,469 in the last year.
The Small Business Administration says that one in four veterans are interested in starting their own business. Last November, the IFA’s VetFran program launched the Operation Enduring Opportunity campaign to hire and recruit 75,000 veterans, their spouses and 5,000 wounded warriors by 2014. Since then, the number of franchisors participating in VetFran increased 16%.
"The franchise industry continues to raise awareness and help the franchising community access the tools and solutions they need to attract this exceptional talent in our nation into our industry," said IFA President and CEO Steve Caldeira. "We commend those companies recognized by the Military Friendly Franchise list who are setting the right example for our entire nation."
More than 468 franchising companies now participate in VetFran. Total estimated discounts to veterans in 2012 is almost $1.2 million with the average discount more than $5,800, up 20% from 2011.
TEA is proud to support VetFran and to assist veterans in their search for a new business. If you are a current or former member of the U.S. military looking to pursue a dream of business ownership, give us a call at 866-246-2884. Our service is free, and we would consider it an honor to assist you with achieving your dreams.
You can also learn more about franchise opportunities at our free June 26 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
A recent survey by the Small Business Success Index found that there are currently about 6.6 million home businesses in the U.S. that generate at least half their owners’ household income and employ 13 million people. Suffice it to say, there’s a lot of business going on at home these days.
The franchise industry has been an early facilitator of working from home, and the economy spurred a surge in home-based franchising in the last few years, since investment capital for startups was scarce. The lack of a large cash outlay at the beginning is one of the most attractive factors about investing in a home-based franchise, and the types of franchises that can be run from home have grown significantly.
While cleaning services were early entrants into home-based franchising, there are many other options, including fitness, pet services, travel agencies, sports leagues, photography, dry cleaning delivery, tutoring, children’s activities, custom closets, blinds, shelving, window cleaning, moving, painting, business services, lawn care and many more.
Most home-based franchises have a total investment of well under $100,000, which includes the upfront franchise fee, equipment, inventory and working capital. Some opportunities cost less than $10,000. Some of the low-cost options may be offered by new home-based franchises, but be careful before you invest and be sure you are comfortable with the risk of being a pioneer. Most franchisees pay for brand recognition and a track record of success; an experienced franchise broker can guide you through the decision-making process at no cost to you.
While home-based franchising still requires serious commitment and hard work, it also provides the potential for great rewards, since some low-cost home-based franchises have a high rate of return on investment.
If you want to learn more about home-based franchise opportunities, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
As a franchise broker, we help people through the process of first deciding whether or not a franchise would be a good fit for them and, if so, what kind of franchise might provide them with the best opportunity for financial stability and personal satisfaction.
This is NOT how we do it:
To find out exactly how we do help you decide if buying a franchise is right for you, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
It’s been said that great leaders are born, not bred. Through more than a decade of helping people start their own businesses, it has been my experience that many of those I have seen go on to great business success have trained themselves for leadership.
A recent article in Inc Magazine by Damien Bazadona, a digital marketing expert whose clientele includes some of the best-known entrepreneurs in the world, focuses on six common traits of great leaders:
Surrounded by talent. Great leaders surround themselves with smart, loyal people and delegate accordingly.
Demands accountability. Great leaders demand accountability and set up expectations from the start when delegating responsibility.
Understands the power of gratitude. Great leaders know the importance of expressing appreciation to retaining top talent.
Provides positive inspiration. Great leaders know that a positive attitude can inspire others to overcome obstacles and continue to take on challenges; confidence often breeds a positive outcome.
Have a laser focus. Great leaders are engaged and focused on the task at hand; they value and respect their own time and that of other team members.
Always optimistic. Great leaders are eternal optimists who believe anything is possible.
If you want to learn more about the leadership traits it takes to run a successful franchise business, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
All the news about franchising was pretty positive during the first quarter of 2012, with various indicators showing rising levels of investment interest as well as increasing access to capital as banks target small business lending for growth opportunities.
This infographic on Franchising in America shows that this growth can be attributed to three factors: (1) an increase in the number of franchises that offer a lower level of investment; (2) more franchises that offer a quicker break-even; and (3) more franchises that deliver high profit margins.
If you want to learn more about what it takes to be successful running a franchise, plan to attend our free May 24 webinar,Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
A recent New York Times article recounted the top rookie mistakes entrepreneurs often make when starting a business, and after more than a decade of helping entrepreneurs find new business opportunities, many of them ring true. Here’s the list:
1. Hiring a good friend or family member. When it comes to hiring staff for your new business, competence is the most important attribute, not familiarity.
2. Keeping rent as low as possible. While managing expenses is always an important part of new business start-up, choosing a location purely based on cost can be deadly for a retail business. Choose a location that provides the best opportunity to generate customers.
3. Buying used equipment. Sometimes this works out all right, but more often than not, you will spend more money fixing used equipment than you would have spend buying new. Plus, it’s an added distraction that doesn’t contribute to sales.
4. Underpricing. You need to price your product to make money, which is the reason you’re in business in the first place.
5. Not spending on professional advice. There is nothing more expensive than a cheap lawyer or CPA. Seek out – and pay a reasonable fee—for the best possible legal and financial advice.
6. Using your personal bank for business banking. Not every bank knows how to serve the small business customer (which means lending). If you’ve chosen a good accountant (see above), he or she can guide you to good SMB banks in your area.
7. Borrowing blindly. Sometimes using borrowed money is a good idea – like borrowing to do things right -- and sometimes it is not. You need to know the difference.
8. Not measuring your marketing. You need to implement a tracking system that measures your marketing efforts; otherwise, you may be just throwing money at something that doesn’t bring customers in the door.
9. Treating employees too fairly. Obviously, you need to treat your employees fairly. But don’t compound a hiring mistake with months of indecision – your business and your profits will suffer.
10. Falling in love with your product or service. A wonderful product or service won’t make up for bad operational decisions.
If you want to learn more about what it takes to run a successful small business, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
Could you cut it as a franchise owner? Even though investing in a franchise helps new business owners minimize risk and provides a template for success, some people are just not cut out to operate effectively within a franchise system.
Here are the top 10 traits of a successful franchisee:
1. Enthusiasm and resilience. While you are buying into a proven system, you still need to be enthusiastic about running your own business and resilient enough to take a few knocks.
2. Team player. A franchise system is a team and you need to be a team player to operate effectively within that system.
3. Task-oriented. It’s no surprise that franchisors are looking at ex-military as the next generation of great franchisees.
4. Resourceful. You need to be able to tap into financial resources to carry you through your first 18 months or so.
5. Leader and follower. You need to be able to effective lead your own employees, but follow the franchise system.
6. Open to change. Sometimes a franchisor may change something you may not agree with; you need to be able to keep the big picture in mind.
7. Willing to learn. Besides everything you will learn from the franchisor, you need to keep up with trends in the industry on your own and stay educated about your industry.
8. Willing to teach. In a franchise system, sharing benefits everyone. You need to be willing to share what you’ve learned with other franchisees as well as learn from their successes and failures.
9. Focus. You need to concentrate on running your own business and focusing on what you want to achieve.
10. Optimistic. Even the best small business owner can let bad economic news or other distractions interfere with their business. An optimistic personality helps you overcome these temporary obstacles and stay on track.
If you want to learn more about what it takes to run a successful franchise, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
A new poll by Thumbtack.com and the Kauffman Foundation that surveyed 6,000 small businesses has come up with the five best and five worst states for small business:
Idaho received the most A+ scores, followed by Texas, Oklahoma, Utah and Louisiana. The states small business owners felt were the least friendly include California, Vermont, New York, Hawaii and Rhode Island, which was ranked the worst state for small business.
The small business owners surveyed also chose the friendliest cities for small business; these included:
Oklahoma City, OK
Dallas-Fort Worth, TX
San Antonio, TX
The Kauffman Foundation, a nonprofit that promotes entrepreneurship, assisted with the poll by Thumbtack.com, which is an online service connecting service professionals with prospective customers.
If you’ve been thinking about starting your own business, plan to attend our free May 24 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.