profitable home services franchise
I must say that I am a fan of home service franchise opportunities. These opportunities typically have both low start-up and overhead costs. As a result, franchise owners benefit from faster returns on their investment.
Due to high profit margins (30+%-70%), there are many happy franchise owners in this space.
As former owners of a cleaning and repair/restoration business, we can speak to the profitability of a home services franchise. Our services were always in demand, our profit margins were excellent, and we were able to easily scale the business.
I believe there are a couple of reasons that home service franchises are overlooked.
- Home services are not sexy. It is all about perception. There is nothing exciting about mowing grass, cleaning the pool, or fixing a broken furnace. People tend to like trendy concepts such as float spas, clothing boutiques, and yoga bars. Don’t get me wrong, there are “trendy” franchises that are very profitable.
- Secondly, people somehow believe that they will be the one painting the house, refacing the cabinets or cleaning the windows. Once they understand that they will actually be “managing and overseeing” the sub-contractors or employees that are doing the work, they are more than willing to explore the idea.
Home service franchises should be at the top of everyone’s list. Why? Because there is always “money in the mess”. People will always pay to have it cleaned, fixed, restored or remodeled.
There are basically three types of customers that home service professionals work with on a regular basis. They are the “I can’t do it” customer, the “I don’t have time to do it” customer, or the “I just don’t want to do it” customer.
These three types of customers are why home service franchises are extremely profitable.
“I Can’t do it”
Most homeowners are not able to fix what is broken. Most of us do not have the knowledge, training or skill set to fix our pipes, our furnace or our roof. In addition, we most likely do not have tools or equipment needed to do the work ourselves.
When you stop to think that 40% of homes are 50+ years old and 80% are 20+ years old, it makes complete sense as to why home services are an “evergreen industry”. Again, there will always be “money in the mess.”
“i don’t have time to do it”
We live active and busy lives. There’s work, kids, church, hobbies, errands medical appointments and more. Our to-do lists are endless.
For many, there are just not enough hours in the day to do our regular tasks plus clean the house, mow the lawn or fix the dishwasher.
Home maintenance, repairs and remodeling are time consuming projects. Consumers are more than willing to pay for the services that they do not have time to do.
“i just don’t want to do it”
Let’s face it. There are some things that we just don’t want to do! So, we don’t do them.
Instead, we search for a home service professional and pay them to stain the deck, clean the gutters or refinish our bath tub.
Time is valuable and we all want to enjoy our free time doing things that we love to do.
Home service franchises provide services that enhance the quality of our lives while helping us to maintain our most valuable asset: the place we call home.
