(Must you buy a franchise or start from scratch?)
So, you are thinking of putting up your own business? That’s great. Most people dream of putting up their own business and be their own boss. Not a bad idea considering the rigors of being employed – 9 to 5 daily routine, a bad boss, low-paying desk job, no bonus, etc. etc. Perhaps, it’s just about time you venture out into something that challenges your expertise, stored knowledge and your guts.
You might have thought of starting out a carpet cleaning business, and why not?
Carpet cleaning is a billion-dollar business! Try to imagine how many offices and private homes have carpets – not just on their floors, but on their walls as well. You have an extensive market, and a rich clientele – mostly those who have carpets can afford to pay for your cleaning service and those who can’t afford to lose a costly investment like a wall-to-wall carpet will surely opt for your professional help, even at costs slightly higher than your regular asking price.
It’s a “repeat” business, too. Your client last month, could well be your same client, after three months, provided however, you didn’t mess up with your carpet cleaning job the last time. As you search for more clients, and deliver a good service to each one of them, you slowly build a niche that can sustain your business for years to come.
Must you buy a franchise?
As a newbie businessman, would you rather build from scratch or hitch your wagon to a star?
When you build your carpet cleaning business from scratch, you will get your hands “dirty” by setting up your business from the ground up: getting clients, start out with nothing but your guts and experience. If you buy a franchise, you instantly have, at your beck and call, instant name recall, and you can also expect support –from training to actual operation- from people who know it all.
Does purchasing a franchise for a carpet cleaning business, guarantee success? Or, does it merely serve the purpose of commercialism, to the detriment of creativity and resourcefulness in building up your business, your way?
When you buy a franchise, you are actually buying a right – a right to use the name of an established business, and to legally operate the same business within your proposed area. Typical among businesses, there are advantages as well as disadvantages.
Buying a carpet cleaning franchise is costly to the tune of thousand of dollars. Incidental costs of setting up a business such as finding a site, either to build or rent, recruitment of manpower, purchase of necessary carpet cleaning equipments and supplies, taking out of licenses and permits including insurances, are exclusive of the total franchise cost:
Franchise Fees. Non-refundable, in fact, when your franchise agreement is terminated for any cause, your investment may be totally lost:
Royalties. These refer to the amount you pay, as a franchisee, to use the name of the franchisor. Computation of royalties is based on a certain percentage of your gross income, whether weekly, monthly or periodically – unfortunately, even including those periods you may not be making money.
Incidental Costs. Advertisements may cause a dent on your finances, too, as you will be obliged to contribute to the franchisor’s advertising costs which may not be directly helpful to your carpet cleaning outlet.
Controls and Restrictions: Franchise control over territorial jurisdiction, site designs, site location, carpet cleaning procedures, as well as restrictive measures in the overall company operation may inhibit the full exercise of your freedom to manage your business.
Of course, there are advantages, in fact, the sales pitch of every franchise opportunity advertised focuses on these advantages (rather than the costs we just figured out):
Minimized Risk. Seeking franchise relations with a reputable company with a proven track record, reduces your risk of losing money to a business venture that is bound to fail.
Assistance. Manpower training on carpet cleaning is provided for, as well as marketing support and managerial advices. Some franchisors may conduct periodic check-ups, seminars and workshops.
Or, would you rather set up your business from scratch?
You can start your carpet cleaning business from home. A good, conceptualized flyer can help a lot. Selling both yourself and your service may present a challenge, but once trust of your client is gained, everything will fall into place.
Do not underestimate the power of the calling card. It is the cheapest, yet one of the most effective mediums of advertisement. Bank on it!
Your competency to deliver the task on time, at least cost and with quality results will determine the progress of your business. As word of mouth progresses into validated truths about your craftsmanship, you will have a solid business.
But then again, starting a carpet cleaning business from scratch is not for the weak of heart. Many have tried and failed – yet, there were those who persevered and won.
Purchasing a franchise or starting from scratch? Regardless of how you do it, just do it well. The humongous success pie of the carpet cleaning business awaits you to get a share of it.