It’s been on your mind to consider opening your own business enterprise. There’s something about opening a waste removal franchise that resonates with you, so that’s the avenue you’re pursuing at present.
It’s been on your mind to consider opening your own business enterprise. There’s something about opening a waste removal franchise that resonates with you, so that’s the avenue you’re pursuing at present. Before you delve too deeply into this opportunity, take the time to ensure you know what you’re getting into. By taking a good look at your abilities and the conditions in the area where the business will operate, you can determine if this is truly the right franchise for you. Here are ten areas that you should investigate closely and ensure you know well.
The last thing you want to do is open a junk removal service and find that the demand for it is somewhere between slim and none. In order to determine if the local market will accommodate the inclusion of one more business of this type, do some research.
There are a few things you want to learn. First, are the services currently operating in the area having trouble keeping up with the demand? Second, will there be additional demands soon, possibly in the form of the opening of a new business park or the development of new neighborhoods? If the answers to those questions are yes, then there’s likely room for you to attract and grow a clientele.
This is an area that entrepreneurs sometimes overlook. Before you make any type of commitment to a franchisor, spend some time checking into local laws and regulations that would apply to your ownership of a junk removal business. The goal is to determine if there’s any type of compliance you should work on now so there’s no issues with the local authorities later on.
This is true even if you’re looking at existing recycling franchises for sale. The fact that the current owner can operate without any issues does not mean that the same applies to you. Take nothing for granted and find out if there’s anything you need to do first and make overtures to the franchisors later.
What is it that motivates you to enter this type of industry? Perhaps you’ve worked in it for some time and know a great deal about what it takes to build a successful business. Along the way, you may have learned some pitfalls to avoid. Your past experience definitely aligns with owning this type of franchise and making it a profitable concern.
Remember that while you may have plenty of practical experience, there are still likely things about operating a business that you need to learn. In some cases, the people you hire can fill in those gaps. At other times, you will need to learn to do those things yourself. Be sure you’re ready for that before you approach any franchisor.
How strong are your management skills? Do you know a bit about supervising people? How about understanding what it takes to manage the hiring process? Even things like knowing how to listen to employees and respond when certain events take place is important. All of these are aspects of management that will be needed at one time or another.
Be honest when assessing what you know right now and identify areas where you need some additional training. This will make it easier to seek out resources that can help you hone those management skills and increase the odds for success. You may find that the franchisor you’re considering already has training programs in place that address some of the areas where you could stand some improvement. If so, that will make preparing yourself all the easier.
Money is something you will need to consider carefully. Many franchise offers require that candidates have some money on hand as well as a plan for financing the rest. While some franchisors do have programs work out with a select group of lenders to help franchisees, it never hurts to have your own plans in place.
Consider how you will cover the initial expenses of the franchise, as well as the operational expenses during that first critical year. Think about what sort of repayment terms you can put in place. Along with allowing you to move faster when the right deal comes along, it also helps you enjoy a lower stress level while you’re launching and beginning to build the junk removal business.
Business plans are a must, even when the plan is to purchase a franchise. Don’t get bogged down in trying to use a lot of technical terms or long words. The whole point of a business plan is to have a series of practical steps arranged in a way that is logical and possible to complete.
The business plan is not just for your benefit. You can bet that any franchisor you approach will want to know how you plan on operating the business and what you will do to help it grow. If you have a reasonable and workable business plan in place, it’s easier to mesh it with whatever resources the franchisor has to offer and increase the odds for success.
You’ve already done the work needed to understand the local market and what it will bear in the way of demand. The work you did to investigate local laws and regulations has also placed you in a good position. Now you need to focus on what a franchisor can provide to help you launch something that’s capable of making a reasonable amount of net profit.
To that end, don’t look at a single waste recycling franchise opportunity and stop there. You want to look at a few more and compare them closely. Franchises are not put together the same way, and they will vary in a number of details. Your goal is to identify the one that fits in best with your goals, provides the type of support you need, and also gives you the room to get things done in a way that attracts more customers.
How many franchises should you compare? That depends on how many are available in your area. If there’s three, look at each one. Should there be five, delve deeply into all of them. The more you know about what’s included in each franchise deal, the easier it will be to make the right choice.
When you began to investigate the idea of becoming a franchisee, the first thought was to go with one that does not have a presence in the community. That’s still an idea that’s on the table. What you should do is add another approach and see what it could mean for you. That approach is to purchase a franchise that’s already up and running.
If there’s a local junk removal franchise for sale that happens to be in your price range, spend some time looking at how well it’s doing. Consider the fact that it has a consistent amount of collected revenue per month, trained employees, and a reputation in the community that happens to be quite positive. Assuming you have the skill set to take over from the current owner, buying this franchise rather than starting a new one may be your best strategy.
Whether you decide to start a fresh franchise or buy one that’s already established, evaluate the level of your commitment to the business. Even if you purchase something that has a firm place in the community, there will still be a lot of decisions to make. You will devote a great deal of your time to ensuring the transition from the previous owner to yourself is smooth for the employees and for the clientele. If there are any changes or improvements you want to make, those will take time also.
Be prepared for long hours. They are likely to be longer than any hours you devoted to a previous employer. While things will settle in over time, being the owner means that the buck stops with you. If that seems like more than you can shoulder, rethinking the whole idea may be worth it.
Don’t overlook what you’re expecting from the franchise. Even with all the resources that the franchisor provides, it will take time to get the franchise up and running. Do you have the patience as well as the financial banking to ride out that period? Will you become discouraged if the business is not where you want it to be in six months? If you think that’s true, being a franchisee may not be right for you.
On the other hand, if you understand that it may take time and you’re prepared to give it your all in hopes of building something that grows over time, this is exactly the type of venture you should consider. The potential for rewards is there, including the sense of accomplishment that comes with seeing something you put together grow as the years pass.
After reviewing these ten items, do you still think that owning a franchise is for you? If so, get out there and find the right deal. It will be a lot of hard work, but ultimately you’ll have something that provides you with a steady income as well as a lot of personal satisfaction.
Check out our latest newsletter! Gone For Good is your trusted resource in Denver and Northern Colorado for junk hauling, moving clean outs and thrift shopping. [ view more ]
The dream team for whole house cleanouts, 5 steps to cleaning and staging your home for buyers and downsizing for seniors during a pandemic- It's an action packed post you don't want to miss! [ view more ]
Gone For Good, Inc., recently announced the opening of their newest location in Ault, CO. Gone For Good Ault is a Colorado-owned and operated small business that is dedicated to keeping people's unwanted stuff out of landfills by finding usable items a second home and life. [ view more ]