Due to the growing population, the house painting business sector is proving to be quite lucrative for discerning investors. There’s a spiking demand for specialist services to help homeowners create a custom living space. Devoid of any credibility, new entrants might have difficulties acquiring clients.
Getting a franchise lets you circumvent this problem and hit the ground running. To maximize these benefits, you need to address a few crucial points.
1. Get the money factor right.
On average, a painting franchise will set you back anything from $40,000 to $200,000 depending on the brand you decide to join. As such, you need to pay particular attention to your source of financing to avoid running into problems before the business takes off.
Negotiating excellent terms on the loan repayment can help you get through the initial lean times with incurring the wrath of your bankers. Studies indicate that it can take up to six months before a new business breaks even and starts turning a profit.
While this observation is not cast in stone, you need to bear it in mind and plan your finances accordingly. You should raise enough money to tide you through the growth period including the rent payroll, your upkeep, and household expenses as well. You will have a better chance of success if you don’t dip into the register to meet your financial obligations.
2. Calculate the return on investment.
No matter how enamored you’d be with a franchise, turning a profit is the primary goal behind buying one. Therefore, you get assurance that the business is worth your time, money, and effort. Take a moment and crunch the numbers to understand the return on investment.
Such an approach lets you pick a brand that fits into your financial plan instead of the other way around. Working with a financial planner can help you choose one that fits the bill. It saves the agony of setting unrealistic expectations only to have them come crashing down.
3. Pick the franchise carefully.
With antes this high, the last thing you want is to partner up with an unethical company. You want to join a brand that has your best interest at heart, one that will be angling for your success. The only way to identify such companies is by digging deep during your research.
Scour the internet for information that relates to the company, and note what their franchisees are saying about them. Go through the Franchise Disclosure Document and observe the kind of legal issues raised by the franchisees. Also, note any problems that relate to bankruptcy.
You certainly don’t want to back a losing horse with your life savings. If unsure or unable to do this, you can always retain the services of an expert and have them handle it for you.
Purchasing a franchise offers you a way to get ahead on the market. However, you’ll have to pay for the privilege of ride the tailcoats of a successful brand.
It’s therefore quite important that you work out all the financial angles so that you are sure that you’re making the right choice. You also have to be certain that you’re partnering with a reliable company that will make sure your business succeeds.