I recently had the privilege of being a guest on the Home Business Magazine podcast. Because I’ve been knee-deep in the franchise world for twenty years, I diligently did my homework before taping the interview to ensure I understood the audience. What I learned was that there are a lot more similarities than differences between franchised home business models and independents, including what’s trending and how to build and maintain a successful business.
Home Business Models Are Red Hot in Franchising
Most of us think of restaurants when we think franchising. Today, that segment represents only about 40% according to International Franchise Association data. The rest is made up of the wide variety of services that busy consumers need, want, and are willing to pay for.
A surprising number of those are home-based. While writing Adventures in Franchise Ownership, I interviewed several top performers and shared some of their insights here while reviewing some of the fastest-growing segments.
Travel Industry
Two big names made the most recent Entrepreneur 500 list: Dream Vacations, a part of World Travel Holdings, is the world’s largest cruise agency and is run almost entirely by home-based franchisees. Alicia Geiger, a top performer, incorporates a monthly newsletter into her disciplined marketing program. Her newsletter is so impactful that the corporate office encourages other franchise owners to do the same.
The other, Cruise Planners, an American Express Representative, a home-based business model is one of the largest, privately owned, nationally recognized cruise selling agencies in the United States. I recently took an Alaskan Cruise booked through Cruise Planners and plan to book another one soon. As a client, I appreciated the availability to work with me during non-business hours and believe that is a unique quality that home-based models bring to the travel industry.
Residential Services
If you need a service for your residence, I can almost guarantee there is a home-based franchisee willing to provide it. This segment is on fire.
From window cleaning and pressure washing to mosquito control or house painting, there is a franchise in almost every market. During my interviews, I’ve learned that they have similar challenges to non-franchised businesses. Jeff Mackey, a top performing Pillar to Post Home Inspectors franchisee shared with me how he once struggled to do it all in his early years of business ownership. A health scare helped him realize that if he wanted to grow, it was better to put accountability measures into place that spread the workload. A Mosquito Squad franchisee shared that when it comes to scheduling, she puts herself down on the Sunday schedule so that her employees can enjoy their families and some necessary downtime. She believes that building loyalty with her employees in this way has been a key to her success.
Senior Services
As the population ages, so grows the home-based senior services market.
From Granny Nanny to BrightStar Care, many successful franchisees started their businesses in their homes. From my interview with BrightStar Care franchisee Jeff Tews, I learned that it doesn’t matter how strong your brand is, it’s developing trust and relationships that lead to success. He and his partner, Susan Rather are top performing franchisees who focus intently on their reputation. That included sometimes hiring personnel before they could really afford to strengthen relationships that lead to word-of-mouth referrals. They also developed relationships with case-workers and discharge planners to deliver exceptional service and further grow their business.
As a former franchisee, I learned that many of the best ideas come from other industries and other business owners. If you have a home-based business and are feeling ‘stuck,’ explore what some of the franchised business brands are doing. Many of them have franchisee testimonials on their websites, and they often share inspiring stories. You may be motivated to try something different or realize that what you are doing is cutting edge.
Either way, you win.
