10 minute read
Chris Conner
VAlUE ORIENTED FRANCHISE MODElS
one of the most significant barriers to entry for any new franchise owner or entrepreneur is the capital requirement to invest in a new business or franchise model. This creates an obstacle for many in that the assumption is there are only so many options and most franchised businesses have investment requirements way above the buyer’s capacity to fund the new business venture.
One of the great elements of today’s small business market is that businesses have become more and more affordable for the average investor and the new franchise market has opened up opportunities for people who at one time just couldn’t even consider the franchise model.
chris conner has worked in the franchise development industry for almost 20 years and helped over 600 brands franchise their brand and develop franchise distribution channels. He founded Franchise Marketing Systems in 2009, which now includes a team of 27 franchise consultants based in and Canada and supports brands around the world to grow and scale through franchise expansion. visit www.fmsfranchise.com for more information
Today, more than ever before, the opportunity to work from home is not only an option, it has become a major part of the work force and franchise market segment. What was once considered a bit taboo or maybe not legitimate, today is completely normal for people to run, operate and build their business entirely from a virtual, home office location. This makes the investment lower and the opportunity for people to get into business without the cost of real estate, equipment, etc all more realistic for the every day person. refers to as “Micro-businesses”, which are businesses which employ 10 people or less. Many of these even can be operated as a single owner-operator in the business allowing for even less capital outlay. The advances in technology, systems and other efficiency-creating platforms has made business ownership with less people a reality in so many different industries which also creates an opportunity for lower investment businesses.
Digital Marketing has revolutionized virtually every industry segment and business model and also made attracting new customers easier, more efficient and
certainly less costly. This includes social media market, pay per click and SEO traffic to targeted and specific customer profiles. In particular, well managed social media campaigns can be executed with very little funding and just some well run social media posting, photography and video work. So many young entrepreneurs have been able to capture incredible presence and customer traffic with personable and consistent social media marketing again, lowering the investment needed to start a new business.
So which franchises would fall into this category of low investment? There are quite a few industry segments making this market segment even more appealing and accessible to a new franchise investor.
1tax preparation and Financial services
Although some of these businesses may require special licensing or have specific owner needs relevant to the industry segment, they make for great low investment franchise offerings as they typically operate with high margins and do not need large amounts of up front capital. Take Prestige Income Tax in a Box for example, a great new franchise system which offers a completely home based business model and can teach anyone how to do tax preparation service work.
2home services
This is a big range of different types of businesses and can include anything from painting to landscaping to smart home services and alarm systems. Generally, these are low investment and can also operate with fantastic profit margins. I love Big
Jerry’s Fencing in North Carolina, great model, home based and can operate because of advanced technology in place. A new franchise model in this category would include QuickMountTV, which is a smart home service franchise which specializes in TV
Mounting services for homes and businesses. Low investment and high margin are certainly part of this home service franchise model.
3insurance
The insurance world has become more and more a part of the franchise industry and one of the elements that makes this industry segment so appealing is the low cost of entry.
Goosehead, Fiesta and a new brand, Renegade Insurance all fall into this category and offer business systems and operating models to franchisees which allow them to leverage the proven business model and get into the highly residual insurance industry segment. If you are considering most of the low investment franchise models, a couple of items I would point out as important to your consideration and review of which franchise brand would make sense for an investment; First, make sure you are comfortable with marketing and sales, most of these business models require that you go out and generate your business. Unlike retail, where you might just open the door and customers walk in, these models require that you go out and generate new business.
Second, look for a franchise system that has good technology in place and solid systems. In a low investment, home based franchise model, you will need tech to scale your business and gain value from the franchise system.
Third, find a franchisor that is willing to work with you on all levels of the business and develop a relationship that is beyond just financial. You want a franchise system that will embrace your success and be there for you in every step of your entrepreneurial journey.
HOW THIS WOMAN OF COlOR IS BRINGING ART AND STEM TOGETHER
Samiksha Bindra is the owner of one mad Science® and one Crayola® Imagine Arts Academy™ franchise location in Colorado.
Since starting out in 2012 as a Mad Science franchisee, she has developed a passion for educating future generations in STEM. She became a Crayola® Imagine Arts Academy™ franchisee in 2017 after discovering that art is a necessary component in STEAM education.
the importance of art in stem
I believe that STEM and art go handin-hand to make each other work, thus making STEAM an extremely important focus for today’s youth. You need some creativity when you want to be innovative in STEM, and you need some calculation and knowledge of science to be successful with art. We know that most people are either “right-brained” or “left-brained,” meaning that one side of their brain is dominant. If you are mostly analytical and methodical in your thinking, you are said to be left-brained. If you tend to be more creative or artistic, you are thought to be right-brained. However, just because you’re one or the other does not mean you are limited to being only analytical or creative. Both components must come together in order to fully understand a variety of scientific and artistic concepts, and I am on a mission to do just that. Prior to becoming a franchisee, I actually had STEM-related work experience as an engineer. I was asked to help Mad Science for 15 days with operations as “vacation work”, and one day an instructor couldn’t make it due to a flat tire so the scheduling manager suggested that I take over because of my background in engineering. I took over the class and instantly fell in love with it. The kids did not want me to leave and I felt that the time flew by because I was having so much fun. This opportunity made me realize I wanted to pursue a more fun and meaningful career at Mad Science. I was motivated by the kids’ eyes growing wide while learning about science and conducting experiments with me. I have a real passion for what I do and want to share the magic of Mad Science and Crayola® Imagine Arts Academy™. Art programs are usually the first thing to be cut when schools are looking to save money or adapt the budget, so I place importance on not only STEM, but art as well.
making education Fun
I fully understand both subjects require science and art and it’s important that we encourage children to use their imaginations to solve any problems that they may encounter. We want to inspire children to dream big through unique a experiences that broaden their horizons by helping them understand real-world topics such as cultural diversity and wildlife conservation.
Because creativity is necessary to comprehend real-world topics, it’s crucial that I teach more than simple concepts such as drawing. One of my favorite projects that I’ve led at my Crayola® Imagine Arts Academy™ location, which is a great example of how art aids STEM education, is having the children design a future city. This activity applies critical thinking, important decision-making, and cultural awareness, all of which are beneficial to building their confidence and problem-solving skills. Additionally, these projects set children up for a lifetime of success and learning because once they start a task, they are determined to finish it. This demonstration of commitment and responsibility is something that is not actively being taught in most schools, making it unique to Crayola® Imagine Arts Academy™.
Being a Woman of color in Franchising
I place a high importance on cultural diversity and awareness, this being because I am a woman of color. It is definitely a challenge not only being a woman in franchising but a woman of color at that. There are many obstacles I’ve had to overcome to get to where I am now. Not only is it hard to come by women in business leadership roles, but women in STEM are few and far between as well. The number of women in board positions in STEM-related industries in 2020 was 19.2%. I enjoy being a woman of color in franchising, especially STEM, because I can show young girls who may look like me that they can be a business owner, have a career in STEM, or even do both. I take what I do very seriously, especially considering that their parents entrust me to teach them something of substance and that they can take with them for the rest of their lives.
STEM has always been my passion, but I want to also make it a passion for another little girls out there, especially ones of color. Women of color represent 14.1% of U.S. bachelor’s degree recipients across STEM fields. 11.5% of people employed in STEM fields were women of color, making up approximately one-third of all women in these fields. I want to see that number grow even larger and to see more women of color in the STEM field.
next steps
There is a clear need to make STEAM education more accessible. Science and tech fields are currently dominated by Caucasian and Asian males. On college campuses, African American and Latino students make up less than 20% of those studying in science- or math-based disciplines. On the job, however, minorities make up less than five percent of the STEM-based workforce, according to 2012 statistics from the U.S. Department of Labor.
Minorities in underserved or struggling school districts are at risk of being left behind, which is a scenario that has far-reaching economic consequences for the United States. Unlike their more affluent counterparts, students who live in underserved communities typically lack access to what are now considered STEM basics: up-to-date laboratories, laptop or tablet computers, and access to the Internet. Additionally, their art programs may be cut to save money for other resources, so having an enrichment program like Crayola® Imagine Arts Academy™ can help them to continue using and building their creativity that will aid their STEAM education and give them an opportunity to explore career paths that would not have otherwise been offered.
What is next for me is to start giving back to my communities by opening another Crayola® Imagine Arts Academy in an underserved and underprivileged area. I hope to continue inspiring children to pursue careers in STEAM by bringing another location to these underserved communities of Colorado.
