Today’s post takes a look inside our kitchen and bathroom remodeling franchise model to share 3 “secrets” to success.
But they’re not secrets, of course–there are none left in business. Kitchen Solvers simply combines best practices and high-quality resources into a single franchise model that has worked for hundreds of American entrepreneurs. Why aren’t other businesses doing it? That’s beyond us–for now, let’s focus on the Kitchen Solvers’ advantage.
Smart Start-Up Costs
One study by the Journal of Small Business Management set out to determine the top factors associated with franchise failure. Among these, “capital intensity,” which was approximated by the franchise startup costs, was highlighted as a primary risk; researchers hypothesized that capital intensity would be “positively related to failure rate” (Castrogiovanni et al., 1993).
Put simply, that means that kitchen and bathroom remodeling franchises with high start-up costs could be more likely to fail. High fixed costs create high break-even points, which naturally increases the failure rate, right?
Before we answer that question, let’s get one thing straight: our kitchen and bathroom remodeling franchise is not “capital intensive.” In fact, a single unit franchise can be launched for as little as $60,000. That includes everything–the franchise fee, cost of training, and even a chunk of liquid capital for emergencies.
But guess what–capital intensity wasn’t as big of a problem as researchers predicted. In fact, capital intensity effects were found to be “insignificant” (Castrogiovanni et al., 1993, p. 105). This may have to do with the fact that they were studying franchise models, in which the money you spend up front often pays for more intensive support services.
Still, capital intensity is undeniably linked to higher break-even points–unless the start-up costs in questions include liquid capital, that is:
“If startup costs include a minimum level of cash reserves, for example, then they do not accurately reflect capital intensity… [and] do not result in a higher break-even point and correspondingly higher risk of business failure” (Castrogiovanni et al., 1993).
In addition to being low compared to other models, our start-up costs include a chunk of cash reserves–up to $25,000. In this way, we can keep our opportunity (and break-even point) within reach of anyone with the right attitude, and make sure our franchisees are equipped to deal with any market turns and still come out on top.
But that’s only one way we set you up for success.
Believe it or not, some of our most successful franchisees entered into our system without any background in sales, marketing, or home remodeling.
Our startup and ongoing training covers everything you need to succeed as a kitchen and bathroom remodeling franchise owner, including:
- Vendor and product management
- Business planning, and much more.
In addition to in-depth training systems, our kitchen and bathroom remodeling franchise offers comprehensive support services to help you overcome any challenge, big or small.
Whether you need help with marketing and advertising, installations, customer service, or business planning, ongoing support is available. Simply pick up the phone and call to consult with a qualified specialist, anytime!
Learn More about Kitchen Solvers’ Kitchen and Bathroom Remodeling Opportunity
You can book a free consultation at https://kitchensolversfranchise.com, or just take advantage of all the free information we have on-site.
Castrogiovanni, G. J., Justis, R. T., & Julian, S. D. (1993). Franchise failure rates: An assessment of magnitude and influencing factors. Journal of Small Business Management, 31(2), 105.Back