If you are interested in running your own franchise, you can expect to invest a lot of time and effort into the business. But how much profit can you expect to get out of this new business opportunity? The truth is many factors influence how much money you can earn as a franchise operator, and it’s important to understand them before selecting a system.
Factors Influencing Franchise Profits And Your Paycheck
From dumpster rental to fitness centers, nobody can tell you exactly how much money you will make, but we can tell you that there are some things that you should take into consideration to help you put the most money in your bank account. Here they are:
Demand For Franchise Product Or Service
Customer demand will have the biggest impact on franchise profitability. You want to make sure that you are offering a product or service that people actually need, want and are willing to pay for.
Have you heard of cereal bar restaurants? Food-prep factories? eBay retail stores? These were all franchise concepts that were popular a few years ago but have fizzled over time. Avoid franchise fads and instead focus on businesses that have been successful in the past and that have a plan – and a path – towards growth in the future.
Competition And Territorial Exclusivity
You can offer an amazing and timeless product or service, but if there are hundreds of other people offering the exact same thing then your franchise – and your income – will suffer. Examine the level of competition in your neighborhood, in your state and across the country and determine if your market is lacking in a particular item or concept. If not, then either find another location or another franchise.
You should also verify that the franchise you select offers territorial exclusivity, which ensures that you don’t have to compete with fellow operators from your own system in your own area.
Brand Recognition And Reputation
One of the best reasons for choosing a franchise over an independent business venture is the fact that you get to be part of a proven, established brand. The more well-known and well-perceived the franchise is, the easier it will be for you to attract customers and turn a profit.
Training And Support
The best franchise systems do more than let you tap into their name and reputation; they let you tap into their knowledge. Seek out franchise groups with comprehensive training and support programs that ensure your success.
Perhaps the best way to determine how much money you can make as a new franchisee is to find out how much existing operators are already earning. Reach out to these experienced operators to get a clearer picture about the franchise overall and their particular finances.
The Biggest Factor Influencing Franchise Profits Is…
You! Nobody will have a bigger impact on your franchise operation than you. Therefore, it’s important to make sure you have the traits necessary to fuel success and profitability. These traits include:
Great franchise operators are committed to their business and willing to take a hands-on role in its success. If you are looking for a “set it and forget it” business, look elsewhere.
A diverse set of skills is necessary, running a franchise means you’ll wear many hats and assume many responsibilities.
Commitment To The Franchise Model
It’s critical to stick with the operational model already in place and not try to reinvent the wheel. Not following the model is one of the biggest mistakes new franchisees make.
Finally, having the financial means necessary to grow and scale your businesses and to take advantage of opportunities when they arise is crucial. You don’t want to miss out on the chance to grow your footprint, your operations and your revenue stream because you can’t afford it. As the old saying goes: It takes money to make money.
Make A Great Decision – And A Great Income
At Bin There Dump That, we have been helping our franchisees make a great income since being founded in 2004. Our dumpster rental services are part of the $40 billion trash management industry, and demand for our bins has grown year after year. Our leadership team is committed to expanding our footprint and our market share, and they have a plan in place for long-term success.
We offer territorial exclusivity to new franchise operators, giving them a large, built-in customer base to leverage, and we’re making sure that people who don’t already love our dumpster rental services get to know us through comprehensive national marketing initiatives, such as being the official bin suppliers to The Property Brothers and becoming the Title Sponsor for Team Glenn Howard Curling.
We also offer comprehensive training and support to all of our operators, wherever and whenever it is needed. Add it all up, and it’s no wonder that so many of our franchise operators have made a lot of money – and had a great time doing it.
If you would like more information about how we help entrepreneurs just like you build successful and profitable franchises, download a free franchise kit today.