franchise Archives

Posts

What Are the Pros and Cons of Franchising?

November 26, 2019/in Steps To Opening /by Michael Stone

For many, buying a franchise offers an appealing way to start a new business. Unlike a typical startup, a franchise usually comes ready-made with a successful business model already in use. But one of the more common misperceptions about buying a franchise is that it is a guarantee for success. Even with all the benefits that come with a franchise, there are still risks to consider before buying one. To avoid future regrets, you should do your research carefully, taking a close look at all of the pros and cons before deciding whether a franchise is right for you.

Pros of Franchising

A quality franchise opportunity offers a range of real benefits for business owners, including:

Brand Recognition

Perhaps one of the most valuable benefits is the established brand name you’ll adopt – and the existing customer base that comes with it. When consumers are already loyal to a brand, it is easier to encourage them to buy from you.

Business Support

Another highly valuable benefit of a franchise is the business support and training you may receive. A big part of why franchises are successful is that they have standardized, replicable systems. Many franchisors offer extensive training and ongoing business support with everything from hiring personnel to help with marketing materials.

Vendor Relationships

Because of their size, franchisors can form advantageous relationships with suppliers and service providers, greatly improving a franchisee’s access to reputable vendors at preferential pricing. The enhanced buying power of a franchise organization often benefits franchisees by offering important assets and services at a reduced cost.

Ongoing Development

A good franchisor will continue to develop new products or services, as well as manage system upgrades, new technology integration, and more. As a franchisee, you can focus on your own operations and leave these development aspects to others.

Reduced Risk

For many reasons, buying a franchise of an established brand is often less of a risk than starting a business entirely on your own.

Cons of Franchising

Like all business opportunities, there are some limitations with franchising, so consider the following before buying a franchise.

Limited Flexibility and Creativity

Due to the standardization that makes a franchise work so well, most franchise contracts have very specific standards that franchisees much follow. Alterations or additions to the business model or brand are often not allowed, especially in the first few years. When you contract with a franchisor, you agree to use their system and no others. However, this should also be seen as a strength in that all franchises are sticking to the same systems and branding guidelines, which results in a strong presence for all.

Reliance on Franchisor Success

A franchise is an interdependent relationship, which means that your business is only as good as the franchisor’s. Any problems or difficulties that the franchisor experiences will probably have a direct impact on you and your business. As such, you should look for a franchise opportunity with a proven track record.

Ultimately, it is important to know all of the pros and cons that come with buying a franchise so that you can make the decision that is right for you. It is also important to compare franchise opportunities to each other to find the ones that would best work for you. If you’ve considered buying a franchise, we invite you to take a look at the Real Property Management franchise. The property management industry continues to grow, which means we need more qualified professionals like you to join our franchise family.

Is Entrepreneurial Experience Needed for Franchising?

November 12, 2019/in Steps To Opening /by Michael Stone

If you are considering investing in a franchise, but are worried about whether or not you need entrepreneurial experience to do so, you needn’t be concerned. The fact is, you don’t need to have experience as an entrepreneur or as a business owner to be a successful franchise owner. Whether you have been an entrepreneur for many years or are just starting out, franchising is a good option for anyone looking to take charge of their financial future.

Different Backgrounds

Franchise owners come from a wide range of different backgrounds, not all of them in business. But having a diverse skill set can be a valuable asset for a franchise owner. Many of the core aspects of owning a franchise can be learned in training or over time, but the qualities that new owners bring with them can be a real strength for themselves and for the franchise organization as a whole.

While each franchise opportunity is different, in industries like property management there is ample room for dedicated professionals to build a quality business. Service businesses like property management and other residential services are also more straightforward to operate, since there is no inventory to track and relatively low start-up costs. These types of franchises also usually offer a stable revenue that doesn’t fluctuate from season to season like retail and other businesses can.

Comprehensive Training

What is more, a quality franchise will provide new owners with comprehensive training and ongoing business support. Many franchises have proprietary systems and a detailed set of operating procedures to follow, both of which can help a new owner get things started on the right foot. The top franchises will also help new owners connect with other franchisees should they have questions or want some advice from an owner’s perspective. It is also often true that the best franchise organizations will provide professional marketing materials, hiring support, and help their franchisees secure preferential pricing with the vendors and services their business needs to thrive.

But investing in a franchise is not only a good option for those new to the industry. Experienced entrepreneurs can get a lot out of franchise ownership as well. For example, owning a franchise can help experienced entrepreneurs learn new, industry-specific business models without having to try to come up with them on their own. Investing in a franchise is not like a startup; you are joining an already-thriving business. What this means for experienced business owners is that you can skip the stress and struggle of the startup phase, and instead focus on growing your franchise. This in turn can help you keep your business skills sharp, as well as offer more opportunities to expand what you know through mentorships, seminars, and networking with other franchise owners. A franchise owner can also benefit greatly from the franchisor’s ability to conduct research, pinpoint target markets, and make your marketing and public relations efforts much more effective.

All of these are valuable benefits for entrepreneurs of all experience levels, but experienced business owners know that it is not just about what the franchise offers you, but what you can contribute to the organization as well. Your skills and business savvy can provide valuable feedback for your franchisor, helping them become even better at what they do. That, in turn, benefits every one of their franchisees – including you. Working together in this way is one of the aspects that makes franchising so unique among business opportunities.

Whether you’ve been hesitating to invest in a franchise due to a lack of experience or are ready for your next challenge (or both!), you just might find what you are looking for in a Real Property Management franchise. With no entrepreneurial or property management experience required, you, too, could open your own property management office in a relatively short amount of time. Please visit our No Experience Needed page for more information.

How Does the Franchising Relationship Work?

October 29, 2019/in Miscellaneous /by Michael Stone

At its center, franchising is based on an interdependent relationship between franchisors and franchisees. This relationship requires a high degree of cooperation and a set of shared goals and interests. When approached with professionalism and a willingness to minimize areas of disagreement, the franchisor/franchisee relationship can help everyone thrive.

According to franchise consultant Mark Siebert, the franchising relationship is unique among other business relationships because of the way that franchisees are positioned relative to their franchisor – more along the lines of a parent-child arrangement. As the “child” in the relationship, the franchisee is thus expected to go through a range of growth phases that move from dependency to maturity.

It is natural to think that at the beginning, a franchisee would rely heavily on the franchisor for support and guidance. Not only do franchisors anticipate this reliance, but they also provide training and materials designed to keep their franchisees moving through the early stages of the business. During this phase, many franchisees feel excited and positive about the future with the franchisor. With effective communication and support, this excitement should continue to be a core aspect of owning a franchise throughout the startup phase – and beyond.

The first three years of a franchisee’s experience is often referred to as the growth phase, in which contact with the franchisor is almost constant. The implications for both franchisee and franchisor here is that good communication is the key to moving successfully through this segment of a franchisee’s business life span. A quality franchisor will have robust support in place to keep the franchisee’s business on track.

After working together to build a business for several years, a franchisor and franchisee often come to the point where they feel they know what to expect from each other. Known as the maturity phase, this time in a franchising relationship can be mutually beneficial. The franchisor should continue to meet expectations and to provide continuing value to the franchisee, and devoted franchisees often thrive during this phase. This is what makes choosing the right franchise opportunity so important. Franchisees who know that investing their time, energy, and money into a franchise will be met with an equal amount of franchisor support can more confidently grow their business.

Understanding what traits create a good franchising relationship is an important part of making the relationship a successful one. During the initial investigation phases, both franchisees and franchisors should determine whether they find the other to be someone they can respect, who has a strong drive to succeed and profit from the relationship, and both offer input and ideas as well as listen when suggestions are made. There should also be clear and comprehensive communication that is ongoing, and proof that such communication will continue throughout the franchising relationship. Newsletters, emails, phone calls, and personal visits can lead to a sound, productive relationship built on effective communication.

At Real Property Management, we understand how important communication and ongoing support are for franchisees. With our proprietary systems, quality owner education, and ongoing support, we offer one of the best franchise opportunities available. If you are interested in learning more about Real Property Management franchise opportunities, contact us for more information.

Five Key Things to Know About Franchising

October 23, 2019/in Steps To Opening /by Michael Stone

If you are thinking about starting a new business, chances are that you are at least considering the benefits of doing so with a franchise opportunity. While opening a business through a franchise doesn’t remove all of the risks new businesses face, it does offer new business owners distinct advantages like training and support, a proven business model, and much more. Still, there are important things to know about franchising before deciding which model suits you best. These five things can help you to know whether buying a franchise opportunity is the right choice for you.

Demand Franchise growth rates continue to rise each year, and the number of potential franchise opportunities along with it. There are over 300 franchise business lines in at least ten different business areas, from automotive and residential services to retail, food, and real estate. When considering a franchise, you and the franchisor will need to ensure that your desired location has enough demand to support your business. It is also important that you and the franchisor research the local market carefully, estimating the potential customer base and whether or not your business is a good fit for the needs of the population.
Competition Along with demand, the amount and type of competition you can expect to encounter is an important consideration when thinking of owning a franchise. It may not make sense to open another fast-food restaurant in an area already saturated with national chains. On the other hand, if your business has something different and unique to offer, you may be able to compete well with the area’s pre-existing businesses. For example, many cities have property management businesses, but Real Property Management’s differentiated service model has allowed our offices to thrive in a variety of competitive environments.
Cost It is important to know that buying a franchise is a significant financial investment. But unlike starting a business from scratch, there is no need to “learn through your wallet,” as they say. A franchisor can help you determine the costs required to get your business up and running. These may include things like the investment price for the franchise, a building or office space, supplies, employees, working capital, and opening inventory (if selling a product) – just to name a few. A reputable franchisor will help you determine how much working capital you’ll need so that you don’t run out of money just before your business starts to turn a profit. It’s also important to decide in advance how you will finance your business before you start shopping, because you might discover you really can’t afford some of those higher-priced franchise.
Training and Support No two franchisors are alike, and so doing some careful research early on in your decision-making process can help make your choice easier. One of the big advantages to a franchise is ongoing training and support from the franchise organization. The best franchise opportunities out there offer in-depth, comprehensive training for new franchise owners. These franchisors will also provide a wide range of support, from access to important services, professional marketing materials, and much more. To ensure that a franchisor actually delivers on their promises, talk to other franchisees. Ask them how much support they received, and whether or not their initial expectations continue to be met. Having strong support and a franchisor that is available and responsive can make owning a franchise business a little easier.
Exit Strategy It might seem strange to start planning for the end of your business before you’ve even begun, but as Stephen Covey is known for saying, it’s important to “start with the end in mind.” Before choosing to buy a franchise, you need to know what your exit strategy will look like. Are you planning to pass the business on to others, such as family members, becoming an absentee owner with a passive income stream, or selling it? Figuring out your end game in advance can help you choose a franchise opportunity that will best fit both your short- and long-term goals.

Buying a franchise can be a fulfilling and profitable way to start your own business, but only if you have a clear path of what you hope to accomplish. If you haven’t already taken a look at what a Real Property Management franchise has to offer, you might consider doing so. Our franchise opportunity is among the best available for a reason. For more information, please visit our Become an Owner page.

Four Hidden Benefits of Franchising

September 30, 2019/in Miscellaneous /by Michael Stone

Buying a franchise offers a number of obvious benefits over starting a business from scratch. But there are a few hidden benefits you might not have thought about. Most people know that franchising usually allows you to get up and running faster. It also offers a new business owner established systems and a recognizable brand, which are valuable assets for any new business to have. But there are hidden benefits to franchising as well, four in particular, that can give new business owners a distinct advantage in your chosen industry.

Hidden benefit #1: You find out whether an industry is a good fit. There are many unknowns when starting a business. One of the most important is whether or not you and your chosen industry are a good fit for each other. There are few things more frustrating than starting your own business only to discover that, for whatever reason, the industry you’re in is not good for you. But exploring a franchise is different. For example, during the mutual investigation phase with a Real Property Management franchise, you can thoroughly explore the business and also speak to current franchise owners. Real Property Management is looking for franchisees who will do well in the property management industry business, and want to ensure that the industry is a good fit for you.

Hidden benefit #2: You learn more about your risk tolerance. Investing in a new business has inherent risks, no matter the industry you choose. But there are ways to mitigate that risk and increase your chances of success. One of these is to invest in a franchise. A quality franchise like those offered by Real Property Management provides not only a proven business in an in-demand industry, but also ongoing franchise owner training and support. Some entrepreneurs are comfortable with high levels of risk; others are not. Knowing how much tolerance you have for risk could help guide you toward the right franchise industry for you.

Hidden benefit #3: You learn what kind of business model and revenue stream would work well for you. There is no shortage of options when it comes to choosing a business model. That is why the key to successful business ownership is finding the right one for you. For example, industries like property management appeal to investors because they offer a recurring revenue stream. When properly maximized through economies of scale and strategic vendor partnerships, this type of revenue can help new franchisees who must watch their cash flows very carefully. On the other hand, seasoned investors may find other business models more compelling. Knowing what works for you is an important part of owning a successful business.

Hidden benefit #4: Through finding the right franchise opportunity for you, you better evaluate and plan for your long-term financial goals. Most successful investors create and follow a strong business plan – with an exit strategy – right from the start. Long-term financial goals are an important part of choosing the right franchise opportunity, but to achieve them, you’ll need to know more than how to buy in to the franchise. The end game you create for your business can be just as important as anything else you do. Being able to see how your franchise can get you to your goals just may be the key to long-term success.

Are you interested in learning more about Real Property Management and our franchise opportunities? Visit our Become an Owner page for more information.

Benefits of Standardization for Real Property Management Franchises

September 17, 2019/in Franchise Owners, Miscellaneous /by Michael Stone

Being able to accurately measure the performance of your business is critical to long-term success. But getting accurate measurements means little unless the data is being collected and analyzed in a standardized way. Standardization allows franchise owners to monitor and compare the performance of their office to others in their peer group, helping them to identify strengths as well as areas of opportunity in their operation. This is why Real Property Management franchise offices use standardized systems to monitor performance, encourage client feedback, and get an accurate measure of how well the office is doing relative to others in their Real Property Management peer group. In this way, Real Property Management franchisees can ensure that they are optimizing their business and using the best practices in the industry.

There are a variety of ways to measure business performance, many of which go beyond simple profit and loss ratios. One important way that businesses monitor how well they are doing is through online client reviews. The importance of online reviews cannot be overstated. Unlike days past, when local businesses could rely on in-person interactions to drive sales, research has shown that a significant percentage of people today will choose a business based entirely on what is being said about them online.

Perhaps even more critically, your customers are one of your most important sources of constructive feedback. They can help you pinpoint problem areas within your business structure, personnel, and workflows, and help you to monitor your service process start to finish. If you are not paying attention to customer feedback, you could be losing business and not even know it.

Real Property Management franchisees use Yext. Yext Reviews is a program designed to curate and manage customer reviews, helping franchise office owners generate authentic feedback directly from their clients. Because all Real Property Management offices use Yext, the data gathered is standardized and easy to compare. Yext also allows franchisees to respond to customer reviews, a key part of any business’s successful public relations strategy.

Once the information is collected and distributed, our franchisees then participate in regular one-on-one business coaching calls to help them analyze and improve the performance of their office. Using industry and company measures, we help franchisees celebrate their location’s strengths and both identify and address areas for improvement. Being able to interpret and apply the information that has been collected is an important part of consistent business growth.

With corporate support, the customer reviews and other data collected helps us ensure that industry best practices are being implemented and consistently applied in each of our franchise offices, coast to coast. Unlike small mom and pop property management businesses, we can access data and statistics from all of our locations nationwide and offer individual franchisees metrics at multiple levels. We can also better assess whether we are meeting our target audience’s needs. As a national organization, Real Property Management wants each of our clients to have the same high-quality service no matter where in the country they happen to be. By gathering information on office performance, we can better help each of our franchise owners improve their operations and keep their client base increasing month after month, year after year.

Would you like to learn more about opening a Real Property Management franchise? Please visit our Become an Owner page for more information.

How Real Property Management’s Marketing Research Provides a Competitive Advantage

August 7, 2019/in Miscellaneous /by Michael Stone

Quality marketing research can give any business an advantage over the competition because knowing your target audience – and how to reach them – is the best way to bring in new clients. But getting to know your target audience can be difficult if you don’t have access to large-scale, quality marketing research. The same is true if you have the data, but don’t know how to turn it into an actionable marketing plan. For this reason, business owners who have this information and analysis provided to them, like Real Property Management franchisees, will always have a distinct edge over the competition.

While there is a vast market of property owners across the U.S., only a small percentage of these owners would make a good candidate for your property management services. Gone are the days when business owners could take a “more is better” approach to reaching potential new clients. This is especially true when trying to reach clients who may not even be looking for you or the services you offer. In our current digital marketing era, offering a service as specific as residential property management requires that you understand who your target market is and, at the same time, that you understand how to tailor your message to get their attention. Rather than waste valuable time and money trying to cast a wide net with your marketing, studies have shown that the more effective approach is to use what you know to focus on reaching your ideal client.

When it comes to running a residential property management franchise, your ideal client is not the entire population of your service area. In fact, trying to go too broad with your marketing could result in a barrage of phone calls and service requests from individuals who, for one reason or another, will never become a client. For example, serious real estate investors who already own multiple single-family properties would be a much more likely candidate to immediately contract for your property management services than an individual who views owning rental homes as a hobby, rather than a business. The latter group is often composed of individuals who do not really understand the benefits of hiring a property management company, and who focus solely on cost without understanding or appreciating the value a professional manager can bring to their asset.

Creating a profile of who your ideal client is should be one of the first steps in planning a marketing campaign. This is where big research studies, such as those conducted by Real Property Management or its parent company, Neighborly, can be an invaluable resource for franchisees. A national study can give franchise owners more insight into the current state of the industry, as well as the ability to plan strategically for the future. Such an advantage is rarely available to most small business owners, who may know their local area pretty well but lack the resources to get an accurate view of the bigger picture. For Real Property Management franchisees, this means that you automatically have the upper hand in any competitive market.

Once you understand who your marketing should appeal to, what motivates them, and where to find them, you can craft a focused and more efficient message to bring them to your door. By focusing your marketing in this way, your franchise can increase profits and decrease wasted time and effort all at the same time. At Real Property Management, we offer world-class marketing resources and materials to all of our franchisees. With quality market research and turn-key marketing resources, Real Property Management franchisees will always stay ahead of the competition.

Would you like to learn more about owning a Real Property Management franchise? Please see our Become an Owner page for more information.

How Preferential Pricing Provides Our Franchise Owners with A Competitive Advantage

July 31, 2019/in Miscellaneous /by Michael Stone

In a competitive market, preferential pricing can be the difference between a business that is just getting by and one that is thriving. If that is so, then Real Property Management franchise owners have a significant advantage over the competition. As a subsidiary of Neighborly and a growing franchise organization with over 300 offices nationwide, Real Property Management has cultivated partnerships with a variety of other service-based businesses. Building-supply stores, locksmith services, accounting software, background-check providers, and many others are available to our franchise owners at a discount.

The property management industry is in many ways linked to other service-based industries. To maintain and renovate a rental property, property management professionals typically rely on services from quality vendors in their area. But that is only one side of the business. Running a property management franchise office also requires all the services typical of any business office, from basic office functions to human resources, tax and accounting services, and many more.

Independent small business owners are likely to pay retail prices for the services and software they need to get their business up and running. These small business owners do not have access to the buying power of a large organization, and are therefore resigned to pay higher costs set by the local market. For example, many small business owners must hire and pay office staff, prepare multiple tax returns each year, and contract with a wide range of service providers, from plumbers and landscapers to marketing professionals. Without leverage, that business owner will pay full market price for each service they need. Individually, each one may represent a relatively small expense, but combined, these higher costs may significantly impact a small business’s bottom line and create unnecessary challenges in a competitive marketplace.

In contrast, Real Property Management franchise owners have the ability to leverage our corporate connections and access the services you need at preferred rates. As a result, not only can our franchisees offer higher quality services to the property owners they serve, they can also use those savings to build their business faster. For example, Real Property Management franchisees can access preferential pricing with service providers like background check providers, saving money each time you need to qualify a new tenant or hire a new employee. We also provide our franchisees with access to discounted services in the home maintenance and remodeling industry, not to mention quality tax and accounting services by qualified professionals.

With higher profits than many other small property management firms, Real Property Management franchise owners can quickly become the leading service provider in their area. This access to preferential pricing is just one of the many advantages that owning a Real Property Management franchise has to offer. To learn more, contact us today.