To Franchise a Cleaning Business Or Not?
When you want to start in a business there are a lot of things that you should consider. It’s not as easy as other people think and sometimes rushing things will put your business in a bad situation. The first thing that you should do is to research about the line of business that you would want to put-up. Take a look on all the opportunities the business has for you.
The term clean is relative; it depends from person to person. People have different standards when it comes to cleanliness. Imagine if everybody has a strict standard of sparkling mirrors, spotless sinks and floors, dirt-free bathrooms, and pristine furnishings, one might not be able to finish cleaning forever. Just like the thought of staying in a hotel your whole life, chambermaids making your bed and cleaning your whole room, but this can’t be possibly real.
When you start a window cleaning business you should be able to point out the extent of the services that you would be offering. Decide if you just want to cover the basics like floors and windows or if you would want the whole house, including the ovens and chimneys, to be cleaned.
Next thing to consider is your financial capability, can you open a business using your own money. Some businesses do not need to start independently. There is a lot of existing business that offers franchising. But before you choose to franchise or go independent, you need to carefully think things out.
In the cleaning industry in US, franchising is not that strong compared to other industries. Some cities only have 10% franchises. The other 90% consists of small independent business operators. What’s good about a franchise is that you are investing on a proven system. They have already made their name in the industry. This means you have a high chance in succeeding in the cleaning business that you’ll put up. But a franchise also has its down side. It can limit the growth of your business as you become more established. Of course you need to stick with the main policies of the business that you franchised. Sometimes, a franchise owner could also suffer financially.
Before you make up your decision whether you want to acquire a franchise or put-up an independent cleaning business, you should check the target market that you want for your business and see what their complexities are. Household and offices are the easiest market that you could provide cleaning services with. This market is not complicated and obtaining a franchise is alright. But if you want to deal with more complex markets such as industrial cleaning, then you should be going independent. To give you some idea and help you decide whether you will be franchising or not, read the notes on the disadvantages and advantages of franchising below.
* Franchise offer early support during the set-up phase of your cleaning business, as well as in your first few years in the business. Entrepreneurs having little experience in the business get a full start-up kit. It usually comes with complete equipment, training, and marketing assistance.
* Independent business owners are alone in the start-up phase of the business. Some business starters struggle and have a hard time in the early phase of the business lifecycle.
* Related experience and some mentoring would help independent operators. Extensive research in the field of the cleaning business will also be needed.
* A franchise comes with a brand. This is important because many people are already familiar with the brand; this means you’ll easily get recognized. People will accept your business easily especially if the brand you carry has a good reputation.
* A franchise gives business owners a higher chance of success.
o The franchisee will be locked into a deal of ongoing obligations. You need to pay fees and are required to buy supplies from the franchiser or their own affiliates. In early stages of business wherein your income is limited, a cost effective choice is to invest your money in your own independent business instead of having to pay a company for all the things that you need.
o A franchise might limit the growth of your company. Franchisers place many restrictions on what your business could do. And as a franchisee you need to stick with the rules and regulations based on the agreement you’ve signed. You may miss out on other opportunities for your business. Independent operators on the other hand could do anything that they want in their business.
o Acquiring a franchise doesn’t guarantee success. Franchises fail sometimes. Some common complaint of franchisees with their franchiser is that they do not regulate the number of franchisees in a particular area. It is possible to open many franchisees in a community. And this is not good because they would all be competing for customers. It is impossible that all of them would succeed.
If you decided to go independent and your business attains success, you might eventually think of expanding your business. Getting a lot of accounts over the years in different cities might be too much for you to handle. Offering your business for franchising might be a good choice. You do not need to invest additional money for acquiring equipment and hiring employees anymore but at the same time you could earn additional income.
o You could teach other budding entrepreneurs on how to start up with their cleaning business. You could provide them start and build up kits as well as share your experiences on this type of business.
o Low cost franchises are good at times of recession. People who were laid off from their jobs and wants to put up a business on their own with the money that they saved could easily acquire a franchise.