Robert Kiyosaki said it best: “If you want to go somewhere, it is best to find someone who has already been there.” This saying holds true if you are building a restoration business. Starting as an independent company can seem exciting, then quickly turn overwhelming when you face challenges that pop up along the way.
Often, independent business owners consider the option to join a franchise organization. But it’s essential that you consider the pros and cons of this decision before making your move.
Pros of Franchising
Why would you consider moving from an independent business to a franchise? Business owners are often attracted by:
- Corporate systems to implement in each franchise
- National insurance contracts that will bring customers through the door
- Network connections to tap into the knowledge and advice of industry experts
- Well-known brand
Yes, there are advantages that can come through franchising. But it’s important to understand that you will lose out on a few benefits of business ownership at the same time.
Cons of Franchising
The above benefits come at a cost. Here are some of the potential drawbacks you might experience if you choose to franchise your restoration business:
- You will lose your hard-earned brand since the name and logo will be replaced by the franchise
- Certain aspects of your business are out of your control since you are required to maintain the franchisor’s requirements
- A local business reputation can be negatively impacted by the bad performance of other franchisees in the area
- A portion of all revenue will be shared with the franchisor, which cuts into your profit margins
Alternatives to Franchising
Most independent business owners find that they can build their own operating and marketing systems at a fraction of the cost compared to buying a franchise. If you prefer to maintain your own independence, then consider another strategy to tap into the benefits of franchising without giving up your control: peer networks.
Through a solid peer network, you have a group of like-minded business pros who share their own experiences running a restoration company. You can gain the industry support that you need, without giving up your profits, brand, and freedom.
Whether you are looking to maintain your independence, or you are considering the option to “un-franchise” your company, it is essential that you have a solid peer organization through this process. You can maintain solid relationships with other successful restoration companies and learn about the best practices to help your company thrive.
List of Peer Networks in the Restoration Industry
When you have access to the right people in your peer network, you will benefit from the immediate access through proven tools, perspectives, and best industry practices.
Where should you go if you would like to join a peer network in the restoration industry? We’ve compiled a list of both free and paid memberships you might consider. Learn more by downloading our free guide: Be an Independent Restorer, But Not Alone. This article offers valuable information about building peer networks and tapping into the support you need for your restoration business.