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Pros and Cons - Buying a Cleaning Franchise Versus Starting From Scratch

Copyright 2006 The Janitorial Store

One of the first questions that you must answer before starting your new cleaning service business is whether you want to become an independent small business owner or buy into a franchise. Each has its own advantages and disadvantages, and the type of business you choose depends on your unique set of circumstances. Before making your choice, research cleaning franchises, and then narrow down your choices. Then talk to current and former franchise owners. Then give some thought to the following:

Why are you going into business? Is it because you want to be your own boss? If you want to have total control of your business then having a franchise is probably not something you want to pursue. A franchise will dictate many of the rules and guidelines that you have to follow. The policies set by a franchise may include: where you buy supplies, how you advertise, fees you can charge, and even hours of operation.

Are you looking for guidance on getting your business up and running? A franchisor has taken time and effort to develop a successful business template. It is a proven system that has worked in locations across the country. The franchisor can provide you with start up information, training, and name recognition. Because people are familiar with the franchise name, it may take less time to establish a customer base than an independent business.

Do you want to set your own rates for your services? A franchise may dictate what rates you set for your services and even what services you can offer. If you want to offer services outside their guidelines, a franchise might not be your best choice.

Are you comfortable training employees and keeping the required employee documentation? Since a franchise has an existing business template, they will be able to provide you with training materials for your employees. The company may dictate what training employees must have along with what employee records you must keep in your files. A franchisor will most likely give you employee job descriptions and may give guidance on employee wages.

Do you know where to buy your supplies at a discount? A franchise agreement may also dictate what supplies and equipment you will use in your business. As the franchisor buys supplies in large quantities you may be able to get the supplies and equipment you need for your business at a discounted rate. But also be aware you may be required to buy supplies and equipment only from authorized companies, which will not allow you to take advantage of discounts and promotional specials from other suppliers.

Are you willing to pay a portion of your monthly revenues to someone else? Franchising agreements differ, but most will require you to pay start-up costs as well as a percentage of your revenue to the franchisor. In addition, many franchises have ad-funds that you must contribute to in order to fund national advertising campaigns. When talking with other franchise owners, be sure to ask them if they feel they're getting their money's worth from their ad-fund contributions.

Do you have the marketing skills necessary to promote your business? Independent businesses are responsible for all of their marketing from developing business cards to phone book ads to websites. A franchise can provide templates for most marketing pieces. The home office may dictate what advertising you can and can't do.

Is there a specific location where you want to set up shop? A franchise can dictate how many of their businesses are set up in a particular area. They may even give you a specific territory where you can offer your services.

Remember, a franchise is a ready-made template that you can jump into and have support so you can get your own business up and running without having to "reinvent the wheel". However, a franchise also has rules and procedures that you must follow and that will in some ways dictate what your business can and can't do. The way you want to run your business should guide you in you determination of being an independent business or a local branch of a national franchise.

Article Source: http://articlekarma.com

Steve Hanson is co-founding member of TheJanitorialStore.com, an online community for owners and managers of cleaning companies who want to build a more profitable and successful cleaning business. Sign up for Trash Talk: Tip of the Week at www.TheJanitorialStore.com and receive a Free Gift. Read cleaning success stories from owners of cleaning companies at www.cleaning-success.com/ .

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