When you really stop and think about how many people fail to pursue their dreams of owning a refacing business because of their own misunderstanding of start-up costs and investments, it paints a pretty sad picture!
In today’s post, we break down what it takes to get your foot in the door financially when opening a refacing business.
Getting a Proper Start Financially
Starting a refacing business isn’t as cost-prohibitive as you might think. First, you’ll need to acquire the following amounts for a lump-sum payment:
- The initial franchise fee – $35,000. The initial franchise fee is what gives your refacing business access to our proven training systems, marketing assets, and Platinum Sales process. It also gives your start-up company instant name recognition as a leader in the refacing, home improvement, and kitchen/bath design industries. This brand name association gives your company tremendous authority and sales value from day-one, which eliminates the slow momentum-building and word-of-mouth-building required with independent small businesses. The franchise fee will be due upon execution of the Franchise Agreement.
- Supplies package – $5,100. Small business owners often have to scramble to acquire their supplies during the first few weeks so they can start to generate revenue and claw their way out of the red ASAP. Unfortunately, this isn’t easy; finding premium materials and supplies means forging relationships with vendors in your area, which requires a great deal of time and energy to do right. When you launch your refacing business with us, you get access to our exclusive vendors, which means less stress, more time, high-quality materials, and tremendous savings over the long-term. Your supplies package must be purchased before opening.
- Vehicle – $0 to $3,500. Some of our franchisees buy into our system with vehicles of their own, while others are required to purchase theirs through third-party suppliers. In either case, your vehicle must be acquired prior to opening.
- Insurance premiums – $500 to $2,500. Your refacing business will need to be fully insured before your doors can open for business. You will need to contact insurance companies in your area, which means premiums may vary.
- Utility deposits and business licenses – $700 ot $1,500. As with your insurance premiums, your business will need to be fully licensed before you can start to accept clients. These will be secured via third-party suppliers, so actual costs may vary.
- Attorney’s fees – $500 to $1000. Signing the legal paperwork required to buy into our refacing business system is best done with the guidance of a legal professional. Attorney fees can vary wildly; some may even offer consultative services at no charge.
In addition to these lump sums paid prior to opening, you will be required to pay additional expenses as they’re incurred. These additional expenses include:
- Pre-opening training – $1000 to $2,500. Your total training fees will vary depending on the level of training required, the amount of travel involved, and the rates of third-party hotels, food providers, and transportation services.
- Pre-opening advertising – $5,000. If you want to generate any sales for your big grand opening, pre-opening advertising is required. This amount will need to be paid 120 days after signing the Franchise Agreement.
- Local marketing – $15,000 in first 6 Local marketing is crucial; working on refining your product and services is key, but marketing is where you make your money. Your total expenses here will depend on which advertising assets you choose, and must be paid as incurred.
You can find more information about start-up costs by visiting https://kitchensolversfranchise.com/research-kitchen-solvers/what-are-the-start-up-costs/.Back