If the idea of owning your own business appeals to you, but you don’t have the time or interest in starting a business from the ground up, purchasing a franchise may be the answer. A franchise allows you to own a business that has instant name recognition along with an established client or customer base in many cases. In addition, you will likely receive support and training that allows you to invest better and spend smarter. Once you have made the decision to purchase a franchise, you will need to decide what type of franchise interests you. One option is a personal service franchise. As is the case with any business venture, there are advantages and disadvantages to owning a personal service franchise.
What is a Personal Service Franchise Business?
As the name implies, a personal service franchise is a franchise that focuses on providing personal, home-based services to customers. In the 21st century, many of these businesses are focused on services for the elderly; however, a residential cleaning company, pool maintenance company, or a pet sitting business are also examples of businesses that would fall under the category of “personal service.”
Advantages and Disadvantages
One important consideration when deciding to purchase any franchise is the growth potential for the business. Today, people work longer hours, juggle more responsibilities, and generally have less free time than they did even a few decades ago. As a result, businesses in the personal service category, in general, are experiencing more growth overall than other business categories. Services for the elderly, in particular, are expected to see a significant growth over the next several decades as the population of America ages. Therefore, growth potential is a definite advantage for a personal service franchise.
Compared to other franchise opportunities, the initial cost of purchasing a personal service franchise is frequently low, another advantage to choosing this option. This is because the nature of the business doesn’t require much in the way of office space, materials, or supplies. Your “product” is the service which you bring to the customer.
One more advantage to operating a personal service franchise is the ability to give back – to help others. While the goals of any business venture are to invest better on business decisions and spend smarter by reducing costs, knowing that your business provides a service that has meaning to the customers is certainly a plus.
On the disadvantage side of the equation, a personal service franchise is likely to require you to work irregular hours. You may also need to work more hours than you would at another type of business. Keeping the customer happy is the key to running a profitable personal service business. That may mean working nights, weekends, and over-time.
A Most Important Issue to Consider
A most important consideration when contemplating the purchase of a personal service franchise is the liability that goes along with a business of this kind. Because you will be entering other people’s homes and potentially caring for their personal and healthcare needs, you will need to personally secure the proper liability insurance. Not only will this increase your initial costs, but liability insurance renewal will be an on-going, yet necessary, expense.
Other Critical Concerns to Consider
You also may need to think about the following:
- Finding enough capable, trustworthy, and affordable employees
- Licensing requirements from federal, state, and local government agencies for yourself and all your employees
- Affordable insurance coverage for yourself and all of your employees
Use an Independent Evaluator
Owning and operating any franchise is a major life-changing commitment. It is hard to make that decision on your own with your inherently subjective views. You will likely be excited and eager to get going, but you need to temper this with a solid sense of the hard work ahead. The franchisor looking to sell you a franchise is not much help either due to his/her own biases. Therefore, to invest better and spend smarter, it is critical to engage a truly independent evaluator paid only by you, to help you to evaluate all the pluses and minuses of each particular franchise opportunity. This extra cost will help you to better prepare for the good and bad aspects of the franchises that you are seriously considering. Most importantly, an independent evaluator could help you to avoid a big mistake.
After weighing all of these considerations, if you have an interest in helping people, you may find that a personal service franchise could provide a way to accomplish that while generating excellent income. There is nothing more gratifying than owning a successful business that can help others.Your IBSS Team