The demand for home services franchises in general have boomed in the past couple of years – and that holds true for the plumbing franchise segment as well.
Take, for instance, what Rune Sovndahl, chief executive and co-founder of Fantastic Services, told BusinessNewsWales in September 2021:
<blockquote>“Covid-19 has changed the business landscape across the UK, with many people and businesses struggling to recover. However, demand for property maintenance has boomed and several of our area developer franchisees, particularly in the Oxford, Bristol and Reading regions, have enjoyed a tremendous expansion with more than 20 new areas launched across the whole country over the past twelve months.”</blockquote>
And not a moment too soon as plumbing is part of an industry segment that has seen its worker numbers decline, even as demand has increased.
Per the Trade Trends Report 2021, released by Skills Training Group, the overall number of plumbers and heating and ventilating engineers in the UK workforce fell by 4.19% over a 16-year stretch (from 2004-05 levels).
One of the keys to stem the drop, according to Mark McShane, Managing Director at Skills Training Group, is to get younger workers into the trades. He says, in part, “In order to encourage young people to make these choices, businesses in the industry need to engage with young people, sharing their success stories to encourage a new workforce.”
Relating its business model to the aspirations of a younger workforce hasn’t proven to be a problem for franchises like Fantastic Services. For instance, Sovndahl notes, “We also conducted a recent survey of 2000 UK adults, where we found that approximately 3.5million Brits have opened up a second business since the beginning of lockdown. This trend is particularly prominent among millennials aged 24-34 with one in six claiming to have started a side business. This obviously lends itself very well with the Fantastic Services business model.”
Advantages of a Plumbing Franchise over Independent Operation
<blockquote>“We have seen a real spike in entrepreneurial people wanting to open franchises with us rather than starting a new business completely on their own. This makes sense in that new franchisees get the benefits of running their own business, while being protected from a lot of costs, risks and uncertainty.” ~ Rune Sovndahl</blockquote>
People buy into franchises for many different reasons. Suppose you are enthusiastic about owning your own business, but can’t quite come up with a business idea of your own.
Or, maybe, you know exactly what you want to do, but the idea of doing all of the legwork in setting of a business – such as brand development, writing a business plan, learning the rules and regulations of the industry, finding how to supplement your existing skills in the area, figuring out marketing, etc. – makes your head spin.
For either case, franchising may be the best method for making your dreams come true.
When you invest in a franchise, you take on the methods of a business that (1) understands its established target market, and (2) has proven itself profitable and sustainable. These are two of the primary reasons many people find the prospect of a driving franchise very attractive.
Independent companies that go into business without the support of an established partner often struggle to penetrate the market. They often misunderstand what their customers want and how to fulfill that desire. It can take a long time, along with trial and error, for an independent company to get their service offering right.
On the other hand, franchises tend to enjoy more immediate success because the parent company has done their market research. The franchisor has spent time developing their services and products to meet the standards expected by their customers.
When you invest in a plumbing franchise, you inherit not only the immediately recognizable branding of the parent company but the tried-and-tested business model focused on a client base who already know and trust their service model. In addition, the franchisor, typically, already has an existing supply chain and vendors that already know what the business needs. You also take on the parent company’s hard-earned reputation—and reputations are hard to build in the marketplace.
It should also be noted that some prospective franchisees are worried about not having the skills needed. Not a problem.
In franchising, your franchise parent company typically provides a training package for you and your employees to ensure that you can maintain their hard-earned reputation. In addition to training, many franchise partners offer a range of business support functions, including HR assistance and help in your business and employment regulation compliance.
In addition, many franchise opportunities in this field are management based. Meaning you don’t have to perform the manual labor – unless you desire to. If you wanted, many franchise opportunities allow for you to run your franchise by building a team of qualified service people. You oversee the operation and concentrate on bringing in additional business and performing other administrative tasks.
Further, franchisors tend to set their franchises up in territories they have faith the business will succeed in. After all, their ultimate success is dependent on the success of their franchisees.
What You Should Seek When Choosing a Plumbing Franchise
When deciding which franchise to invest in, you should compare how much and what types of support the franchisors offer on an initial and ongoing basis. The most common services offered by the franchisor include but are not limited to the following:
- A well-known brand name
- Use of operating manual
- Training
- Assistance in choosing and developing the franchise location
- Grant of a territory with a level of competitive protection
- Advertising and marketing strategy guidance
- Advice and business support from headquarters
With a recognisable brand name and logo, high-quality signage, and other support materials provided by the franchisor, you will be able to focus your efforts on the everyday aspects of running the business. This includes staffing and managing the company and ordering supplies, and selling and passing on the service.
It’s important to remember that even with the guidance and support, franchises are still independently-owned businesses. Therefore, whether your plumbing franchise is a success or failure is based entirely on you and your ability to run the company.