If you’re a small business owner or considering becoming one, you’re probably familiar with the business services industry. Business franchises provide a vast array of services that most franchise owners rely on to keep their company afloat. Whether it be accounting, printing, shipping, or event management (to name a few), many businesses rely on these third parties to keep things running. Find out below if investing in a franchise in this particular industry is right for you!
Many businesses rely on third party franchises to keep things running.
Business franchises make up one of the top performing industries, bringing in roughly $176 billion in 2016, according to Statista. Not to mention there are nearly 100,000 different business services franchise companies.
What makes business franchises so appealing to small and medium business owners? For one, business service franchises are easy and relatively cheap to use. Creating a printing or accounting or mailing service for your own business is costly and involves hiring new workers. Using a third party franchise, however, is a cheaper and simpler option. Not to mention, these parties are becoming increasingly easier to use and hire. With today’s apps, using a shipping or event management service is a breeze.
Despite the buzz and popularity within the business franchise industry, there are certain challenges that each business franchise must face. More and more, business franchises are meeting difficulty in competing with online resources. Many of the services business franchises provide, such as hiring, for instance, are being replaced by web resources that complete the service at a lower cost (for instance, indeed.com). While there exist business franchises that seek out employees and candidates for business owners, many of these franchisors are opting to use web services instead.
Nevertheless, business franchises are treading the tide. Business franchises are driven by demand, which depends highly on the efficiency but also successful marketing. Many newer web resources or applications are unable to finance marketing campaigns that bigger business service franchises, like H&R Block, for instance, fulfill more easily.
Is a business service franchise for you?
Many people opt to open a business franchise if they have experience or knowledge within a certain field. If they have particular experience in event management, for instance, one may decide to open a franchise offering this service to corporations.
At the same time, prior experience, while helpful, isn’t totally necessary. Most all franchisors provide new franchisees with training manuals and support programs to assist with their integration into the respective industry and franchise system. Often, these programs play a big role in enhancing knowledge even for those with prior experience.
Before choosing a business franchise, research industry reports and consider how this industry meets your career interests and goals.