The last couple of years have made people question how to properly invest their money and grow their wealth. However, smart entrepreneurs understand that investing in a franchise is an excellent way to diversify their portfolios. As you decide whether or not to invest in a particular franchise, however, it’s necessary to ask yourself tough questions about what kind of business you want to open and how much you want to spend. Here are some important considerations to assure a solid return on your franchise investment.

IS THE BRAND RIGHT FOR YOU?

It’s usually best to choose a franchise investment that offers a product or service you already understand or that you’re at least interested in learning more about. If you’ve always dreamed of owning a bakery, then it may make perfect sense for you to invest in a bakery franchise. The more passionate you are about selling what your franchise offers, the more likely you are to succeed.

WILL YOU NEED SPECIAL TRAINING?

One of the great benefits of buying a franchise is that most franchisors provide the specialized training required to operate their business model. For instance, Cabinet IQ is a cabinet and countertop company that offers a high-tech, customer-focused approach to kitchen and bathroom remodeling. As a potential Cabinet IQ franchisee, you might assume that you need construction or remodeling experience, but that’s not true. Cabinet IQ provides a comprehensive training program that teaches you everything you need to know about owning and operating a successful remodeling business. You simply need to be self-driven, dedicated, and passionate about offering excellent customer service.

DO YOU HAVE LEADERSHIP SKILLS?

Have you ever owned or managed a business? How are your communication and customer service skills? Most franchisors prefer their franchisees to have some previous managerial or business experience. After all, you’ll be the boss at your location, responsible for dealing with employees, customers, and vendors. If your management and communication skills aren’t great, you should start putting plans in place to develop them now.

ARE YOU WILLING TO FOLLOW THE SYSTEM?

In order to ensure brand consistency, franchisors usually control certain aspects of a franchisee’s business, such as vendors used, sales area, and more. While you’ll be in charge at your specific location, you’ll be required to follow the rules outlined by your franchisor. if you’re the type of person who’s unwilling to take orders from someone else because you have an idea that seems better, a franchise investment may not be right for you.

HOW MUCH MONEY DO YOU WANT TO INVEST?

When you buy a franchise, you pay an initial franchise fee that gives you the right to use the franchisor’s brand and proprietary business model. While every company is different, initial franchise fees generally range from as low as $10,000 to as high as $100,000. It’s important to understand that the franchise fee is not the same as the total startup cost, which also includes estimates for rent, utilities, store build outs, equipment, inventory, permits, and more. Consider how much you’re willing and able to commit to a franchise investment. At Cabinet IQ, the total startup cost is $143,350 to $223,300—that includes your $45,000 franchise fee, costs for creating a state-of-the-art showroom, funds for an aggressive marketing campaign, and estimates for everything else you’ll need from pre-opening through your first three months of business.

IS THERE DEMAND FOR THE FRANCHISE’S PRODUCTS OR SERVICES?

It’s difficult to make money if no one wants what you’re selling. That’s why it’s crucial to choose a franchise that offers a product and/or service that is in high demand. Watch out for franchises providing products that are only popular during certain seasons or are merely passing fads. Other franchises, like Cabinet IQ, offer products and services that are in high demand year round. In fact, the home improvement industry continues to boom. As fears about COVID-19 have lessened, more people are now looking for professionals to complete “do-it-for-me” projects, such as kitchen and bath renovations. This increased demand makes the home improvement franchise cost a solid investment.

DOES THE FRANCHISE HAVE A STRONG BUSINESS MODEL?

Your franchise agreement allows you to sell products and services using your franchisor’s business model. Sadly, not all business models are developed with the franchisee’s best interest in mind. If you choose to go with a reputable franchisor, like Cabinet IQ, you’ll get a comprehensive business model that will help propel your franchise location onto the road to success. Cabinet IQ’s formula includes state-of-the-art showrooms, a proprietary customer relationship management (CRM) system, specialized accounting and financial tools, professional sales and marketing campaigns, top-notch training, on-going support, and much more. As a member of the Cabinet IQ family, not only will you gain access to our proven system, but we’ll also make sure you know how to implement it.

GET STARTED WITH CABINET IQ

At Cabinet IQ we specialize in guiding customers through the often difficult process of remodeling kitchens and bathrooms. Just as we make certain our customers get a stylish and functional product they’re happy with, we provide our franchisees a franchise investment they can feel confident about.

To qualify as a franchisee, candidates are required to have at least $225,000 in liquid capital. It’s also recommended that new franchisees have a minimum of nine months of personal reserves.

If you’re a driven, self-motivated leader ready for your next best franchise investment, fill out this form, and one of our representatives will be in touch.

Published On: September 22nd, 2022 / Categories: Featured, News /