Are you planning to start a home care business? If so, you’re likely aware that understanding the startup costs is a crucial aspect of the decision-making process. In this blog post, Ryan Lungstrom, owner of Touching Hearts and the Director of Marketing at the corporate office will delve into the key factors that influence startup costs and explore the benefits of choosing between joining a franchise or starting an independent agency.
Everything You Need to Know
In terms of initial startup costs, the decision between joining a franchise or establishing an independent agency certainly plays a significant role. Today, we’ll delve into this topic, addressing the common misconceptions surrounding franchise costs compared to those of an independent venture. Many people mistakenly believe that franchising is a more costly option. Let’s find out.
Regardless of which you choose, there are certain initial startup costs you’ll encounter, such as:
Legal and Licensing Expenses
It’s essential to consult with an attorney to discuss the establishment of your company, including the necessary paperwork and state filings. In addition, several states have specific licensing requirements that are needed to go through during the process. This is required whether you’re starting up independently or franchising.
Insurance
Another common startup cost is insurance, including coverage for the services you provide and workers’ compensation. Insurance is required regardless if you prefer to become a franchisee.
An advantage of being part of a franchise is the assistance you can get from them in terms of making recommendations of the individuals or franchisees they have worked with. They can help now only with legal help, but also with great recommendations on insurance companies who are already known in the industry.
Branding Costs:
One important factor to consider when planning to join a franchise or start independently is building a professional brand. Building a brand involves costs such as designing a business logo, selecting colors, and creating marketing materials like flyers and brochures. Franchises come with a significant advantage here, offering a ready-made brand identity, including a name, trademark, and marketing materials, saving you time and ensuring a professional image. On the other hand, these things may take time to develop when you’re going to do it independently.
You can do your branding if you are a creative person. If not, you can have somebody to do those tasks. Make sure to consider the time, costs, and quality to achieve a brand that is professional and engaging.
Website Setup and SEO:
Setting up a professional website can be a substantial cost for independent businesses, ranging from $5,000 to $15,000. Additionally, ongoing SEO expenses are necessary to enhance online visibility. Franchises, like Touching Hearts, often take care of these costs, providing a customized website and handling SEO to drive traffic.
A nice website and an effective SEO strategy are a great combination if you want your business visible online and drive clients to your business.
Operational Costs:
Every business needs policies, procedures, and an operations manual. Oftentimes, they’re required by your state’s law. Franchises provide these resources, tailored to the specific brand and services. Access to an established software platform and industry metrics can further streamline your startup process.
Knowledge and Support:
Understanding industry metrics, key performance indicators, and benchmarks are crucial for a successful launch. Franchises offer a wealth of knowledge, experience, and support through consultants, coaches, and a network of experienced owners. This support can save valuable time and money during the critical early stages of your business.
Most of the time, you can also buy a franchise that already has an established platform program and lots of experience. These factors can definitely streamline your capacity to start or grow.
Key Performance Indicators
It’s also important to consider time and money to understand the metrics when it comes to buying a franchise or starting your own agency.
In this industry, you should be trying to match what are the benchmark numbers that you should be benchmarking yourself against. This applies to starting up businesses in this industry and checking where they are at one month, two months, or three months in the benefit of a franchise system.
We have all the numbers already, and we provide access to those joining our network. In addition, you will have access to the entire network to be able to ask specific questions. Your questions will be answered because most of the people in the network have started a business, thus, they can provide key insights to you.
In the course of choosing the independent route, you will get access to those numbers, but it generally comes with startup costs. Think about knowledge, experience, and support. Consider how much time you have to acquire knowledge independently compared to joining a franchise where most of it is already available.
Over the years, we have worked with coaches and consultants. We also have mastermind groups, as well as franchise owners that have been with Touching Hearts for over 15 great years now. We are grateful to have a track record that makes all this knowledge for you to save time and money.
Conclusion
After considering all the costs associated with choosing between starting up a business or going on the franchise route, you need to ask yourself.
How much is your time worth?
Do you want to spend all this time trying to figure out everything?
Or, do you want to step into a network that is proven to have the support and infrastructure already?
If you would like to learn more about starting a home care business, book a Discovery Call with us to learn if joining our franchise is right for you.
