Steam Cleaning Business and the Greasebusters Franchise
Here are the top ten things to know if you are considering opening a steam cleaning franchise.
1. The Industry: There is no question that steam cleaning has been around for decades, and it continues to be one of the most popular ways of cleaner up grease and dust in homes and businesses in North America. However, what is not commonly known is that there is a thriving industry for franchise opportunities offering both residential and commercial cleaning services today. A good example of an established company operating out of Canada would be Steamcoating Guild International .
2. Business Opportunity: This industry segment has shown an increase of 10% per year over the last 10 years with business opportunity costs increasing by 25%. With the awareness of health risks associated with the use of chemicals and the ready availability of affordable steam cleaners, it is a market that is only going to grow. An interesting statistic is that while any job site needs to have chemical cleaning equipment close to hand, there has been a steady increase in requests for site specific steam cleaning equipment.
3. Saturation: As with most franchises, this industry has its own level of saturation, which can be determined using a simple formula.
Market Size X saturation rate = number in operation
"Market size" in this case would be 300 million people from the 2006 census – 2/3 of Canada's population - and "saturation rate" would be 15%.
So, to determine how many companies are operating:
300 million people X .15 = 45,000 steam cleaning businesses in Canada.
While large by North American standards, this is still a relatively small industry.
However, as stated earlier, this industry is also an "underground" market where it has been estimated that 75% of the residential cleaning is being done by non-professionals. The trick to determining market size would be adding together all of the franchise locations, the independent cleaners and professionals who are not currently franchising their business.
4. Franchises: There has been an explosion of franchise concepts in recent years with over 5000 franchises now available across North America and more being added every week.
5. Pre-owned Franchises: Over 80% of the franchises being offered today have been in operation for over 5 years with many being sold by the original owner as a retirement plan. The primary reason for pre-owned businesses is that they allow the franchisee to get into business quickly with a minimum purchase price and, therefore, lower initial investment.
6. Franchisees: In terms of franchisees, there are literally thousands of people who have entered into this business through franchising and it has allowed them to gain experience in business operations without having to purchase the entire company.
7. Training: For those who are thinking of opening a franchise, you will need to start or continue your education if you are to be competitive within the business world. While there are many educational programs available in Canada and the US, there is no substitute for attending conventions that offer hands-on sessions.
8. Support: The success of any business depends on proper support from the franchisor and a good way to determine this is by finding out how much support is provided to new franchisees each year.
9. Product Range: Franchises are not always set up to sell a wide range of products. One of the most common is the franchisee being asked to only sell one particular kind of cleaner - usually with a local name.
10. Promotions: There is no denying that successful franchises rely on effective marketing and there are two key elements to this.
Recognition – this begins with having a good product and advertising it effectively, but it also requires creating awareness around the brand. One way of doing this is opening up new locations, but another would be to open up new markets for your product by extending it's use in other countries or getting creative with branded advertising ideas such as offering loyalty programs and sponsorships. This does not mean that a franchisee should just do all of their marketing for free. Of course, it is always possible to offer freebies such as giveaways or even "buy one get one free" type offers if you have a catch. However, the key message is that you should also be willing to invest in these types of promotions as they will bring you significant value.
Franchising: A Summary
Steam cleaning franchise opportunities are growing and increasing in popularity today, with many Canadian businesses paying $40,000-$60,000 per year to own and operate a franchise location.
However, before you pay top dollar for a franchise, do your homework. Make sure the concept is a good fit for you and that the business is profitable. To do this:
Talk to franchisees who are being successful operating their business. Visit them in person and ask lots of questions.
Investigate further: Take time to visit other franchise locations as well as non-franchise locations.
Finally, talk to franchisors and get their side of the story!
To get started today on your own steam cleaning franchise opportunities contact us here at Franchise House. We offer a free franchise consultation and are happy to answer any questions you may have.
Article Source: Franchise House | Franchising Canada - All Rights Reserved
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Conclusion:
Franchise owners often have a wide range of products and services to choose from, providing them with greater flexibility than their non-franchise competitors. Franchisors take pride in their franchisees and the business they create, often supporting them financially if their franchise is purchased by another entity. In addition to this, most franchise owners are able to learn new skills and acquire business knowledge in order to help them become even more efficient with the use of their franchise system. Franchisees receive promotional support from franchisors in order to help expand the brand's image in addition to providing necessary financing for business operations.