Hey everyone,
Tough start to the season no doubt. For those of you that don't know, I'm a Texas fan at heart, and we are in a very similar boat. In fact I have been traveling out to games 1 time a year with my son ever since he was 8 and we are now 1-3 with our most recent trip to watch the Horns choke against Okie St. Our only win in the last 4 yrs is Tulsa and that was a painful 28-21. But the great news, that I have settled on as my peace of mind - is that when the Horns are down, I don't spend nearly as much time consumed by the board and the TV. So, I guess I have the horns and their awful 10+yr run to thank for my current 10yr run as an entrepreneur. So there's that! Man, losing sucks!
Ok, onto more productive topics (at least for me right now!). It’s time for my monthly post about franchise ownership. Today I want to take a dive into the differences between the 2 main business models in franchising. Service based businesses and Brick & Mortar based businesses.
Most people are very familiar with brick and mortar franchises. They are everywhere you look. McDonalds, Five Guys, Orange Theory Fitness, Supercuts, Massage Envy etc… those are all examples of brick and mortar franchises. Some of the characteristics that come with this model are:
Service-based businesses are a little less known than brick and mortar just due to the fact they don’t typically have a retail storefront and sometimes not office space at all. Think of all the services you need at your home…painting, maid service, restoration, home health, those are all service-based businesses. Here are a few of the characteristics associated with service-based franchises:
Hopefully this was of value. As always, feel free to post comments and I will respond.
GO MIZZOU!!!! Here's to a very successful 2nd half of the season!!!
Andy
Tough start to the season no doubt. For those of you that don't know, I'm a Texas fan at heart, and we are in a very similar boat. In fact I have been traveling out to games 1 time a year with my son ever since he was 8 and we are now 1-3 with our most recent trip to watch the Horns choke against Okie St. Our only win in the last 4 yrs is Tulsa and that was a painful 28-21. But the great news, that I have settled on as my peace of mind - is that when the Horns are down, I don't spend nearly as much time consumed by the board and the TV. So, I guess I have the horns and their awful 10+yr run to thank for my current 10yr run as an entrepreneur. So there's that! Man, losing sucks!
Ok, onto more productive topics (at least for me right now!). It’s time for my monthly post about franchise ownership. Today I want to take a dive into the differences between the 2 main business models in franchising. Service based businesses and Brick & Mortar based businesses.
Most people are very familiar with brick and mortar franchises. They are everywhere you look. McDonalds, Five Guys, Orange Theory Fitness, Supercuts, Massage Envy etc… those are all examples of brick and mortar franchises. Some of the characteristics that come with this model are:
- Retail footprint needed (usually Class A)
- Higher start-up costs ($200k – $1MM+)
- Business opens 6mos – 12mos after purchase
- Customer acquisition typically through digital marketing, little to no outside sales
- Owners role is Semi-Absentee typically. Meaning, they start off by hiring a GM to run the day to day. Owner will focus on back office and scaling initiatives (typically scaling by adding multiple locations of same business)
Service-based businesses are a little less known than brick and mortar just due to the fact they don’t typically have a retail storefront and sometimes not office space at all. Think of all the services you need at your home…painting, maid service, restoration, home health, those are all service-based businesses. Here are a few of the characteristics associated with service-based franchises:
- Little to no office space needed – and certainly not retail Class A.
- Business opens immediately after training - Little to no build out costs or time
- Start-up costs typically pretty low ($100k - $200k, unless significant equipment necessary)
- Customer acquisition through outside sales, community focused events (chamber)
- Owner’s role can be semi-absentee or full time, depending on the franchise (some franchisors are very adamant that they want full time owner’s until business matures).
- Typically employ more people (or 1099) and typically blue collar work force
Hopefully this was of value. As always, feel free to post comments and I will respond.
GO MIZZOU!!!! Here's to a very successful 2nd half of the season!!!
Andy
