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Starting a business from scratch or a franchise?

Posted on 5/10/16 at 10:56 am
Posted by hillcountrywanderer
Buda, TX
Member since Jul 2014
529 posts
Posted on 5/10/16 at 10:56 am
Any OTers have suggestions or experience. I would be starting a service business going home to home and operating out a work truck. Startup costs will be cheaper without franchise but there will be more of a learning. Franchise will require an investment of $20k more but is a somewhat recognized national brand.
Posted by Sao
East Texas Piney Woods
Member since Jun 2009
65697 posts
Posted on 5/10/16 at 10:58 am to

Just advertise your pool cleaning on FB.
Posted by RummelTiger
Texas
Member since Aug 2004
89862 posts
Posted on 5/10/16 at 10:58 am to
What service would you be providing?
Posted by tke857
Member since Jan 2012
12195 posts
Posted on 5/10/16 at 11:00 am to
like a repair man or a man whore? could be either or with the description you just gave.
Posted by Tigeralum2008
Yankees Fan
Member since Apr 2012
17134 posts
Posted on 5/10/16 at 11:01 am to
quote:

Any OTers have suggestions or experience. I would be starting a service business going home to home and operating out a work truck. Startup costs will be cheaper without franchise but there will be more of a learning. Franchise will require an investment of $20k more but is a somewhat recognized national brand.


The only reason you should have a home to home service franchise is if their name is nationally recognized and will give your customers a level of trust/comfort they would not normally have with a local startup.

Example: Jani-King is a very good franchise to purchase because the barrier for many businesses and private parties in hiring housekeeper/custodia; services is they fear theft will occur. Jani-King being a national name and holding a good reputation mitigates those concerns
Posted by Tigeralum2008
Yankees Fan
Member since Apr 2012
17134 posts
Posted on 5/10/16 at 11:02 am to
If you are talking computer repair/Home security or home repair, I'd go independent especially because of the amount of competition in the market. Lower margins mean it would be harder to pay franchise fees and make a profit yourself.
Posted by windshieldman
Member since Nov 2012
12818 posts
Posted on 5/10/16 at 11:02 am to
Advertise Adverise Advertise, don't skimp on advertising. If your business is something older people will use even Yellow Book does wanders. It gets bashed in today's internet times, but I still bring in more a month for it then I pay. Obviously get a website, put listing on free advertising websites. Radio does good but you need patience with it.
Posted by BilJ
Member since Sep 2003
158758 posts
Posted on 5/10/16 at 11:04 am to
quote:

I would be starting a service business going home to home and operating out a work truck


well with details like this, I'd expect most should easily be able to give you the answer you seek
This post was edited on 5/10/16 at 11:05 am
Posted by Nado Jenkins83
Land of the Free
Member since Nov 2012
59650 posts
Posted on 5/10/16 at 11:05 am to
quote:

Startup costs will be cheaper without franchise but there will be more of a learning


higher an editor for your ad
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
59498 posts
Posted on 5/10/16 at 11:07 am to
pay the 20k for the name.
Posted by Ham Solo
Member since Apr 2015
7729 posts
Posted on 5/10/16 at 11:15 am to
It depends. The question you have to ask is Will having the name make up for the added costs. Some businesses it will make the difference others the name doesn't matter as long as they can understand what your business does from the name.
Posted by OweO
Plaquemine, La
Member since Sep 2009
113946 posts
Posted on 5/10/16 at 11:18 am to
Can you just start off as a llc before you start franchising shite?
Posted by BilJ
Member since Sep 2003
158758 posts
Posted on 5/10/16 at 11:18 am to
without knowing what he's doing exactly, I'd lean that way. Generally, if you're going home to home people are much less skeptical of you if they see a name they trust or are familiar with.
Posted by PortCityTiger24
Member since Dec 2006
87455 posts
Posted on 5/10/16 at 11:21 am to
Padnuh's home to home trucking.
Posted by ruzil
Baton Rouge
Member since Feb 2012
16904 posts
Posted on 5/10/16 at 11:21 am to
Read the book "The E Myth" before you start.

The reason franchises are so successful is that all their systems are thought out and implemented for you. If you start your business you will have to develop your own systems. If you don't, you will not be able to delegate and end up hating what you do.

The E Myth, discusses this and guides you in setting up the systems needed to be successful.
Posted by darnol91
Member since Jun 2015
749 posts
Posted on 5/10/16 at 12:31 pm to
I think everyone pointed out some great points. I would shy away from the franchise if it is a business you already know/are capable of learning quickly. Like everyone said -- advertisements are your friend. Everyone in the world knows coca-cola and McDonalds, but they still spend a huge chunk of change on advertising, remember that.

If you are going to build the brand yourself, find a good name, and include in EVERY advertisement you post that you are licensed and bonded in your respective field. You want to build your brand around trust since you will be at people's homes. Run background checks on all employees that will be direct labor employees, or hell, run it on all employees, but make sure to screen direct labor as much as you can. You will live and die by your businesses image, so make sure to create the best one you can from the very beginning. You could run ads about trust -- "why trust any other *insert field of work here* business, when you can choose us? We are licensed, bonded, and insured and will offer a full guarantee on work performed" Something along those lines.

Best of luck.
Posted by LSU8654722
Member since Apr 2014
1495 posts
Posted on 5/10/16 at 1:16 pm to
Is your insurance, billing, 401K, and bookkeeping done by the company you are franchising, or will you have to provide all of that as well?
This post was edited on 5/10/16 at 1:17 pm
Posted by Womski
Squire Creek
Member since Aug 2011
2762 posts
Posted on 5/10/16 at 1:23 pm to
Before you do anything, start an LLC or corporation and do all business under that name.
Posted by hillcountrywanderer
Buda, TX
Member since Jul 2014
529 posts
Posted on 5/10/16 at 6:26 pm to
It is a nationally recognized pest control business that provides free marketing and book keeping with a $9000 yearly franchise fee beyond $20000 investment. I would only one part time employee to run it beyond myself.
Posted by Bullfrog
Institutionalized but Unevaluated
Member since Jul 2010
56240 posts
Posted on 5/10/16 at 6:46 pm to
quote:

Read the book "The E Myth" before you start.
I agree.

The book does a fantastic job of showing you that business can be done right. But there are few how's in it.

Michael Gerber's audio programs are good too in case you want more good advice.

Sadly, while many franchises are good at telling you what needs to be done, most are short in the best way to do something with good instructions.

Systems. Complete systems. Turnkey. That's what separates great franchises. From how to handle angry customers, how to open up the shop every morning to how you find and what exactly to say to potential clients.

There should be total systems to make the business work, if you're buying a franchise with potential or just buying a job. That's the difference.
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