Franchising provides you the head start you normally wouldn’t have if you have to start a business from the ground up. But not all franchises are created equal. Some can be your springboard to business success, while others can be a total headache to operate. And numbers show that a home inspection franchise falls in the first category. Let’s round up the ways why this is so.
Affordable Upfront Cost
One of the first hurdles to starting a business is the start-up investment. Aside from the franchise fee, you’ll also have to shell out serious money for training, equipment, and other expenses just to get the ball rolling. No wonder, some franchises (think food and retail) could cost a few hundred thousand to a million as start-up capital.
For instance, opening a 7-Eleven store could set you back up to $1.2 million. Sure, you get instant brand recognition for that amount but not everyone can afford a million for capital. In comparison, a home inspection franchise wouldn’t cost you more than $50,000 to get started. Plus, with many financing options available, this is something the average Joe could afford.
Has High-Growth Potential
According to the National Association of Realtors, 99% of its members recommend a home inspection to their clients in the purchase process. And even if they don’t, 85% of home buyers are already inclined to having the property inspected first before finalizing the deal.
Considering that there were an estimated 681,000 home sales in the month of December 2019 alone, a 10% increase from the prior year’s 617,000 home sales figures for the same month, the industry enjoys a very positive growth potential. No wonder, this business is estimated to be a 3 billion dollar industry, while the United States Bureau of Labor Statistics expects a 10% year-over-year growth rate for this industry until 2026. That’s plenty of room for any budding business owner to grow.
Due to the industry’s high-growth potential and relatively low start-up investment, it’s far easier to grow and scale your business. Compared to other industries, you don’t have to think of procuring many pieces of equipment or move to a larger office if and when you decide you’re ready to scale. You just need to have the passion and generosity to pass on the knowledge to other people for you to be able to thrive well in the home inspection industry.
Think High-Profit Margin
You can operate this business at the comfort of your home “office”, which means low overhead costs for you. Plus there are lots of ancillary services that you can offer to existing clients, which could even drive up your profit potential. And since the business model is very predictable—that is, you always earn after every inspection, there’s less risk of your income stream going dry.
You Have Flexible Options
Whether you want to operate a one-man show or you dream of building your own home inspection empire that’s making an impact in the community you’re serving, the decision is entirely up to you. Unlike other franchise businesses, home inspection allows you to charter your own path when it comes to growth so you get to define what success looks like, allowing you to play to your strengths as well.
Works with Any Background
Whether you are a veteran, realtor, corporate professional, independent inspector, tradesman, engineer, or architect, you can train to become a home inspector. Home inspection skills are not mandatory to get started in this industry since it’s up to the franchisor to provide ample training to get even novices up for the job.
Besides, the strengths and skills learned from your previous job will come handy as you grow your home inspection business. If you’re a veteran, your propensity to follow procedures, display a can-do attitude, and provide great service will translate well as you work through the franchise system and achieve your goals while providing the best service to clients. The same goes for corporate professionals whose accounting, management, and marketing acumen would be very nifty in handling the administrative side of the business.
Meet Lots of People
As a home inspector, you don’t just deal with home buyers as there are plenty of other service providers involved in the buying process (sellers, real estate agents, bank representatives, and insurance agents). Aside from getting to meet lots of people within your community from different industries, you also get to network with these professionals. Word-of-mouth marketing is a great way of putting your name out there.
Make an Impact in Your Community
A house can be the largest single purchase and is one of the most momentous decisions a person can make. Being in this business makes you part of the process and the service you render could be one of the most important factors the buyer will consider when the time comes to make a decision. A service well rendered could save the buyer from years of headache. Not many businesses have this much impact on the people they serve. But you do.
There are lots of franchise businesses out there, all with their own merits. But if you want to be part of a growing industry while being of service to your clients, buying a home inspection business franchise could be the right choice for you.