Owning a business comes with all kinds of expenses, some that may seem obvious to most and some that most never consider until it’s absolutely unavoidable. At Cabinet IQ home improvement franchise, we’re all too familiar with a single variable having a dramatic impact on our bottom line, and it’s time we share that insight with you as you consider starting your own kitchen and bath remodeling business.

In this article, we’ll address four of the most common factors that affect the profitability of your home services franchise, as well as meet Colin Dorman, the newest Franchise Owner to join the Cabinet IQ team and the first to come from outside of Texas!

Location, Location, Location

You’ve heard the phrase a million times before, and it still rings true today, but we’re not just talking about the location you choose for your showroom. In the years we’ve built our kitchen and bath remodeling business, we’ve learned exactly what types of communities Cabinet IQ thrives in–and lend to higher profitability. However, if you don’t already have years of experience in the home services industry, how are you supposed to know if your territory will help or hurt your profitability? The Cabinet IQ crew can help with that.

Market Research

When you’re interested in franchising with Cabinet IQ, you go through our seven-step franchise discovery process, which will help you get to know everything there is to know about us, and vice versa!

After our initial call and taking the time to review our Franchise Disclosure Document, the third step will be to conduct market research on your area. During this time, our team will take a deep dive into your market and look at a variety of factors to make sure your territory is ideal for a Cabinet IQ franchise. This way, if you’re not sure whether you’re in the right spot to open a home improvement franchise, you’ll have the support you need upfront to find out.

Your Products & Services

There are a few things that can help or hinder the success of a business, like the types of products you carry. While all businesses work this way, it’s especially true for the home services industry. This is because certain products will come with higher profit margins than others, and this can even vary depending on the brand, tier, or even the level of demand in the market for a given product.

In addition to the products you offer, the services you provide can also impact your profitability, either for better or worse. With a Cabinet IQ home improvement franchise, the design and installation services offered can provide different levels of profitability; for example, since subcontractors are hired to install all cabinets and countertops, the particular contractor’s rates could absolutely affect the profit margins associated with that service.

The Benefits of a Laser-Focused Product Line

At Cabinet IQ, we are proud to be the only home improvement franchise offering full-service cabinet and countertop services to customers looking for kitchen and bath remodels. While other companies in the home services market focus on entire kitchen renovations or resurfacing jobs, our franchise focuses solely on the installation of only cabinets and countertops, with the vast majority of our work being in residential kitchen projects. Through this focus, we can provide our franchisees with businesses that are proven to produce some of the highest profit margins in the home services market.

Subsidized Showrooms & Vendor Assistance

In the kitchen and bath remodel space, finding the best possible showroom location and sourcing the ideal products for your audience can easily be some of the biggest challenges you face as a business owner. With Cabinet IQ, we understand that customers will travel far and wide to find your business, so prime real estate isn’t necessary! On top of that, our support team has established relationships with a variety of countertop and cabinet manufacturers, meaning your showroom will be subsidized by these vendors and you won’t need to spend weeks sourcing product to start selling to your community.

Your Employment Needs

As you scale your home remodeling business and shoot for greater goals, you will inevitably need employees (including managers and key leads) to help you get there. Having the right employees can both increase and decrease your profit margin, with more hands on deck giving you the ability to sell to more customers, but the associated payroll can also be a massive everyday cost. How you choose to run your business will affect how many employees you’ll need to hire, but with the right franchise business model, you may not need as many as you expect.

Our Minimal Employee Approach

With the Cabinet IQ home services business model, we enable our Franchise Owners to start their business with just themselves and one other–either a partner or an employee. This lean staffing setup is possible because all cabinet installations are done via subcontractors, meaning you never need to pick up a hammer yourself! Instead, this will give you and your team more time to work on your sales, operations, and project designs.

Your Ownership Style

Owner-Operator

An owner-operator is a Franchise Owner that has a daily, hands-on presence in the business. By choosing this business model, you don’t need to hire a General Manager to oversee your team, allowing you to save on your payroll, and, ultimately, boosting your profitability. However, just because you start your franchise journey as an owner-operator, doesn’t mean you always need to maintain that role! Also, with Cabinet IQ, you can choose to either focus on the sales and design portion of the business or to dedicate your time to the overall operations–the choice is yours!

Semi-Absentee

If business ownership is your dream but you want to take a slightly less involved approach, you may be looking for a semi-absentee ownership-eligible franchise. As a semi-absentee franchise owner, your everyday work will shift away from being in the daily grind of the business as an Owner-Operator and into more of a high-level oversight role. While this change will necessitate hiring employees that will inevitably affect your profit margins, this can sometimes be offset by hiring employees with strong sales skills and general managers with extensive backgrounds in leading teams.

Welcome Our Newest Franchise Owner, Colin Dorman!

Welcome Our Newest Franchise Owner, Colin Dorman

Coming to us from Huntsville, Alabama, Colin Dorman is the newest Owner we’re excited to welcome into the Cabinet IQ home services franchise family! As a first-time franchisee, Colin is leaving his 37 years of finance operations management behind to join the world of business ownership. Since his move from New York to Huntsville during the pandemic, his goals as he moves forward into entrepreneurship are to better connect with and contribute to the community he now calls home and spend more time with his family.

So, to give Colin a huge Cabinet IQ welcome, we sat down and chatted with him about why he chose to look into financing, what drew him to Cabinet IQ home improvement franchise, and what he looks forward to in the future. Read along with us as we get to know the newest Franchise Owner to join us: Colin Dorman!

Welcome Our Newest Franchise Owner, Colin Dorman

Cabinet IQ: “How did you first learn about us?”

Colin: “It all started when my dog, Charlie, decided to wake up at 4am and would not settle. So, while waiting for him to go back to sleep, I picked up my iPad and reviewed several franchise opportunities in the construction and related home services industry space. Next, I spoke to friends, a designer, a home builder, and a porcelain slab fabricator to get their feedback on the gaps and pain points.

With their input and my own experience during the recent renovation of our home, I narrowed my focus to cabinetry. We knew there had to be a better way, and in looking at the companies in the home improvement space, only Cabinet IQ offered anything different and came close to offering the level of service that we expected, and by extension, one that will stand us apart from other players in this space.”

C: “What did you like about Cabinet IQ’s business model?”

Colin: “In two words, process and simplicity. Coming from an operations background where the value of the process is clearly understood, that Cabinet IQ is grounded in operational processes resonates strongly. Next is [the] simplicity of business model, cabinets, and [countertops] period, meaning we can focus on excellence in both. I see way too many companies being distracted by chasing bright shiny objects and making errors that negatively impact their business, and people.”

C: “Was there anything about the model that intimidated you or gave you a moment’s pause before getting your questions answered by your Franchise Development Director?”

Colin: “Being new to franchising, the process was a voyage of discovery, one with a million questions. Jason, our Development Director, was patient, generous with [his] time, and super professional from the first call to the day we signed the franchise agreement. He is a superstar and I cannot speak highly enough of him.”

C: “What did you like about meeting Cabinet IQ’s Founders and the executive support team in person? Was there anything in particular that you enjoyed about Discovery Day?”

Colin: “The Discovery Day was awesome, everyone we met truly believed in the company, the product and lived the values of the company. Big shout out to the operations manager, James, who was asked to join us when we went to the warehouse building. This was unplanned and unscripted, he totally cemented what we were already feeling, that Cabinet IQ is a special place to work.”

C: “What were some of the challenges you faced in your previous career that you believe will make you a successful entrepreneur?”

Colin: “While I leave the relative security of working for a corporation, it does come with its own challenges, especially decision-making, which can be slow at times or made with no apparent rationale. Working for myself will allow me to be more agile in not just decision-making but in every aspect of business life. Drawing more upon my own experiences, I will ensure my people are central to decision-making and, in turn, empower them to make [a] positive impact [on] the success of our company.”

C: “What do you look forward to most about owning your own Cabinet IQ home improvement franchise?”

Colin: “There are many things that excite me about owning this franchise; I will pick my top three. Being able to work for myself and provide stability for my family was a key deciding factor here. That I can do it in my local community and bring opportunities into Huntsville is very cool. [Additionally,] I get to work with the Cabinet IQ team, who are all awesome. I can’t wait to cut the ribbon and open Cabinet IQ, Huntsville, Alabama.”

When you’re ready to finally leave your day job behind and follow your passion just like Colin, Cabinet IQ is the new home services franchise to help you make that dream a reality! With Cabinet IQ, you get a ground-floor business opportunity to shake up the sleepy home improvement industry that is kitchen remodeling and do so with a business model that’s ready and proven to bring you the financial freedom you’ve been looking for. Learn more about this franchise investment opportunity by downloading our free Franchise Report and contact us when you’re ready to take the next step!

Published On: July 26th, 2023 / Categories: Featured, News /