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Business Center Franchises
Been considering a business center type of concept for some time now, but cannot really see anything exciting, some concept with an innovative approach to the service offering, something that may holds onto a new trend or area with residual income rather than one time deals that keeps the owners and employees spinning for the rest of time.
I looked at the training and coaching concept, but many are too complicated and really I find it an illusion that one can coach and consult in such a wide range of ways some of them prescribe. Well maybe because I was a banker before, but as such I have seen a fair share of people trying to run businesses in areas they were not prepared for.
The post office type franchises appear to have a strange price / benefit ratio. I really cannot quick grasp the numbers with a high level of service (normally low margin) and limited product mix (no house brands) which leads to slim profits. Besides the changes and rumours in this sector in recent times I would also be concerned about the future based on raising failure rates and drop in new licensing.
Copy and Print franchises would be another thing to consider, although copy and print is not really a new and most offices can handle a lot inhouse with leased equipment. However, I heard of a new one from Dallas called 4CP which is not so high in capital investments as most others and offers some innovative ways of running the biz. Anyone any thought or experience with that concept?
Does anyone know of a new trendy business to business type of franchise that does not appear to be from the 80s, something with a "WOW, I NEED THAT" effect in the 21st century?
Business to business franchising
Guest,
Thank you for sharing your franchise considerations, your observations are valuable and you present some compelling insight about the business to business (BTB) area of franchising.
I couldn't agree more with your assessment of the "post office" model. I also agree that the “coaching/training” business models are hard to enact and difficult to perpetuate.
I have never heard of 4CP. I do suggest extreme caution when investigating a franchise with only 5 units, all in Texas.
Business to business (BTB) is one of the more stoic areas of franchising, there aren't a lot of new trends out there for BTB. It’s the more conventional business models that are the most dependable BTB franchise opportunities.
There are new technologies though. Choosing a franchise opportunity that is on the forefront of technological advances is very important for long term BTB success.
Take the printing industry; it’s been around for 100's of years, today there is more printing being done by businesses than ever before. The marketplace requires more and more sophisticated business marketing communication materials in order to succeed.
There are two additional printing franchises (other than 4CP) that have business models that are interesting, take a look at: Allegra Network and Alpha Graphics. Both are significantly involved with digital printing technologies and both offer an unique way for prospective franchisees in developed market areas to get involved in the business.
There will always be a benefit to offset printing (4CP also uses offset printing), digital technologies are advancing and the cost per piece have declined significantly. But at longer print runs offset is by far, more cost effective. In most developed markets across the country there is excess offset printing capacity, meaning there is more offset capability than there is offset business.
What Allegra and Alpagraphics franchise conversion programs propose is that prospective franchisees purchase existing established “offset” printers and convert them to Allegra or Alphagrahics. What the prospective franchisees gets maybe the best of both worlds, existing dependable cash flows, and the ability to build sales by utilizing new technologies and substantially appreciate the value of the asset that they just purchased.
The concept is better than a startup because you have built in existing cash flows, yet there is built in growth potential to build the value of the asset.
Call me if you have any questions.Jim Coen (877-469-3002)
Jim@franchiseperfection.com
Franchise Perfection, Lets Talk Franchising Blog
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