What Home Services Businesses Can Learn From the Most Profitable Franchises
- January 29, 2020
- By: Vonigo
We asked the experts: What lessons can home services businesses learn from the world’s most profitable franchises?
Many home services businesses aspire to grow into multiple locations. Some already have a franchising model that they are using to grow their businesses. When it comes to franchising, many industries have seen terrific success with the model. What can be learned from the playbooks of the biggest franchises in the world?
We received responses from a number of experts. They offer up some great advice that home services businesses can use, whether they are promoting a franchising model or not. Here’s what they had to say.
1. Tom Scarda, Franchise Consultant, The Franchise Academy
There are many factors in running a profitable business. Some items are in the owner’s control and others are not. One area where franchisees make a mistake is marketing.
Marketing is easier than ever but also more confusing because of the options available via the internet. Owners often make the mistake of wanting to be everywhere all the time with marketing. That gets expensive and is not very effective. Avoid going a mile wide and a foot deep. Figure out, with the help of the franchisor, where your customers are. Then go a foot wide and a mile deep. Create a few raving fans, now called micro-influencers, and word will catch on about your service.
The most important thing in marketing though is to monitor and measure the campaign. Have a budget and a plan and follow it.
2. Ethan Taub, CEO of Goalry and Loanry
Consistency is absolutely key in a franchise. A franchise has built up a stellar reputation and is held to a very high standard by the customer.
Any variance from these lofty heights can cause a financial hit to a franchise. This can be very damaging if it happens in the early adoption of the franchise. Bad reviews and word of mouth are hard to recover from.
The important thing to consider is that the franchisor trains the new franchisee fully and all the staff too. This will help maintain consistency across the brand and give potential customers what they have come to expect from the brand.
Individual or small business owners have a bit of leeway with customers due to their perceived size and being part of the community. A franchise is immediately expected to have its act together, there is no bedding-in period allowed with them.
To summarise, they need to hit the ground running, which requires sufficient training and preparation, then and only then should they open for business.
3. Nick Bibby, Founder of The Bibby Group
Generally, what the best franchises have in common is different from “most profitable.” Let’s start with “best.”
The best franchises have the best systems. A franchise business system that has been carefully groomed to operate efficiently under a variety of owners and in a variety of settings is the hallmark of all great franchises.
Of course, there are other factors to consider such as franchisee selection, location, training, etc. But the key to all great franchises is the operating system. The concept of profitability in franchising is a much more difficult factor to determine. Of course, an average of some sort, or a scale of profitability shown by such things as the amount of time in operation, can be determined. But all franchises see sales and profitability as a range across multiple units. To say that a particular franchise brand is ‘most profitable’ is difficult at best because even a quality system can see underachievement and even failed units.
Bottom line: to judge a franchise is to judge its systems and its ability to perform well over the span of time with multiple units and multiple locations.
4. Michael Colacci, COO of H2Go Mobile Wash
There are two common denominators that all successful franchisors have. The passion for enforcing brand consistency and the determination to continue learning about business adaptations.
What makes a successful franchise is being able to replicate the brand’s overall values and the customer experience it’s known to provide. This is easier to say than to do. Often, a franchisee can develop its own habits and style, which could deteriorate the brand’s overall outlook and reputation.
The other common element which all successful franchisors possess is the determination to continue learning about the opportunities to expand the growth of their business. In the business realm, adjustments, modifications and improvements are inevitable if one desires success. Adapting on the fly and not being intimidated can be the underlying key to your success.
The Most Profitable Franchises in Home Services Use Franchise Management Software
Want to learn about how franchise management software can help you grow into one of the most profitable franchises? Features like centralized or location-specific online booking, and franchisor-specific reporting tools can help you expand to new locations with ease and offer a lot of value to franchisees.
