Expert Advice: Home Services Franchises is Where the Heart is
Although it was a difficult time for us all, it created a positive financial opportunity for some. Business owners running home service franchises have had a very successful past year.
For much of 2020 the world was on pause, families focused on the basics and put a halt to much of their discretionary spending.
Instead of going on vacations and dining out, people were spending money on home repairs and upgrades. While many businesses had to shut down during the pandemic or scale back their operations and lay people off, the home service franchisees found themselves hiring people and seeing their sales go up.
If you are interested in a home service franchise, your instincts are on target and shared by many entrepreneurs. Over the past year I have worked with an increased number of clients who are looking to start home based business. Here is some of what this industry has going for it.
The home services industry is growing
The International Franchise Association’s 2021 report, “Economic Outlook For Franchising” states that franchises that specialize in servicing both residences and businesses will likely see considerable growth, expanding at a rate of 3.4%. If you have been considering buying a cleaning company or a pest control franchise, you will be buying an industry in a market where there is a lot of demand. It’s also a demand that is expected to continue.
Trends suggest home is more important to people than ever
There’s good reason that consumers are seeking out more help from home-based service franchises. Even as the pandemic becomes a distant memory, not everybody is going back to the office. The trend of remote work seems to be here to stay, and people are spending more time than ever in their homes.
Bolstering that argument, Microsoft’s
Work Trend Index survey, conducted by an independent research firm, Edelman Data x Intelligence, which surveyed 31,092 fulltime employed or self-employed workers across 31 markets last January. It found that 70 percent of employees want flexible remote work options to continue and that 66 percent of business decision makers are considering redesigning physical spaces to better accommodate their work environments.
Making residences even more appealing is going to be even more essential for homeowners, who will now be spending more time at home. At the same time, office buildings aren’t going anywhere. Employees will likely split the difference in a hybrid model, both of which are going to be requiring help in maintaining living and workspaces. Which means that if you are leaning toward a service business that specializes in helping office buildings and workspaces, or one that does home and commercial, you have little to worry about.
An ever-aging population
Time is also on the home services industry’s side. Right now more than 10,000 Americans are turning 65 years old every day. In fact, by 2030, all Baby Boomers will be 65 years old or older. The oldest members of Generation X isn’t all that far behind them. By 2050, one in five people in US will be considered a senior citizen.
How does that help the home services industry? People will try to stay in their homes longer, which will help keep the home services industry thriving for years to come. The delay in moving out of homes has also created a rapidly growing market for franchises that provide services such as non-medical in-home senior care.
Lower overhead
Real estate is expensive. One of the many saving graces of home services franchises is that most of the work is done in the person’s home. That means for many franchisees can work from home or operate from a smaller footprint. A storefront location is not required when dispatching a team of full-time and part-time workers to clients’ homes.
There will be other expenses to consider, such as a fleet of vehicles to maintain, insurance, equipment, inventory, and payroll. However, real estate costs will be fairly minimal.
If you are considering a home services franchise, the time is now. This is a market that is growing, and if it’s something you want to be a part of, you should give it some serious thought. After all, you’ve spent the last year being locked in. You don’t want to someday regret not joining the home services franchise industry and feel locked out.
Terry Powell is the founder of The Entrepreneur’s Source, which, since 1984, has been North America’s leading alternative career ownership coaching™ franchise dedicated to the helping people move from employment to empowerment. Today, with more than 140 locations in the United States and Canada, The Entrepreneur’s Source® continues to lead the $1.5 billion-dollar Business Coaching/Consulting franchise market in North America.